Coinbase, a leading cryptocurrency exchange in the US, recently announced its Q4 2025 earnings results, which showed significant volatility amidst a sharp decline in the crypto market at the end of the year. This led to Coinbase 's stock briefly falling to its lowest level in two years during after-hours trading, before recovering thanks to Dip buying.
According to its financial report, Coinbase recorded total revenue of $1.8 billion in the fourth quarter, a 5% decrease from the previous quarter. Revenue from trading – the exchange's core income source – decreased by 6% to $983 million. Subscription and services revenue also weakened by 3%, reaching $727 million. Notably, the company reported a net loss of $667 million this quarter, a reversal from the profit of the third quarter of 2025. The main reasons for this were losses related to the company's crypto asset portfolio and strategic investments in the blockchain ecosystem.
Coinbase's decline reflects the overall picture of the cryptocurrency market at the end of 2025. According to data from CoinGecko , the total crypto market Capital has "evaporated" by approximately $1.1 trillion, equivalent to a nearly 25% decrease in just the last few months of the year. Selling pressure continued into early 2026, causing the market to lose another $700 billion. The prices of Bitcoin, Ethereum, and many major altcoins simultaneously underwent deep corrections, leading to a drop in volume on most exchanges.
Nevertheless, Coinbase Institutional believes this correction could help the market “re-establish” price levels, eliminate excessive leverage, and create a more solid foundation for a new growth cycle in 2026. This view is consistent with that of many large crypto investment funds, which XEM deep corrections as opportunities for portfolio restructuring and long-term accumulation.
Delving into the revenue structure, the retail client segment saw a sharp 13% decline compared to the previous quarter, partly due to users shifting to more advanced trading products with lower fees, as well as an increase in Coinbase One subscriptions. Spot volume from institutional investors also decreased, but revenue from this group increased thanks to strong growth in the Derivative segment, particularly after Coinbase completed its acquisition of crypto options exchange Deribit – a strategic move to expand its market share in the global derivatives sector.
On the positive side, stablecoin-related revenue continues to be a bright spot. Stablecoin revenue increased 3% year-on-quarter, reaching $364 million, as the Medium USDC balance held across Coinbase products hit a record high. However, the declining interest rate environment has somewhat limited the growth rate of this segment. Given that the US under President Donald Trump – who was re-elected in late 2024 and is currently running the White House – is pursuing a more flexible fiscal and monetary policy, interest rate trends could continue to directly impact revenue from stablecoin-backed assets.
As of the end of the year, Coinbase held $11.3 billion in cash and cash equivalents, indicating its balance sheet remained relatively strong. The company also actively repurchased shares, totaling approximately $1.7 billion as of early February 2026, to bolster shareholder confidence amid volatile stock prices.
Immediately after the report was released, Coinbase shares fell about 4% to around $135 in after-hours trading, their lowest level in two years. However, the market quickly reversed course, and the stock briefly rebounded to around $147 as investors carefully assessed the positive long-term factors. Prior to this, the stock had also been pressured by news that CEO Brian Armstrong had sold over $500 million worth of shares in nine months, along with a general weakening trend in crypto-related stocks.
Despite a loss in the fourth quarter, Coinbase is pushing ahead with its product expansion strategy aimed at building an “Everything Exchange”—a comprehensive trading platform. The company is integrating direct stock and ETF trading into its app, developing a forecast market in the US, expanding its payment and stablecoin infrastructure, and accelerating its Derivative segment to compete with other global exchanges.
