#What Led to Coinbase's $667 Million Loss?
Coinbase reported a significant loss of $667 million during the fourth quarter, highlighting a 20% decline in revenue compared to the same quarter last year. This performance fell short of analyst expectations, which has raised concerns among investors.
In the reported quarter, Coinbase generated about $1.8 billion in revenue. Unfortunately, this figure was less than what Wall Street had forecasted. The company's non-GAAP earnings dropped to $0.66 per share, exceeding 30% below consensus estimates.
This earnings miss is indicative of a broader slowdown within the cryptocurrency market. Bitcoin, for instance, has experienced a staggering fall of more than 47% from its peak of nearly $126,000 in October 2025. Consequently, trading volumes and overall investor engagement have plummeted across various exchanges.
#How Did Coinbase Perform Overall in 2025?
Despite the disappointing fourth-quarter results, Coinbase's overall performance for the full year 2025 was relatively strong. The trading volume for the entire year reached $5.2 trillion, representing a substantial increase of 156% compared to the previous year. Furthermore, Coinbase's global market share more than doubled, now standing at 6.4%.
Revenue generated from subscriptions and services totaled $2.8 billion for the year, showcasing growth of over five times since 2021. The platform has successfully increased its paying subscriber base to approximately one million, tripling the figures from just three years prior.
In 2025, Coinbase also expanded its service offerings. The company launched several new products, including 24-hour perpetual futures for U.S. users, prediction markets, and equity trading. This diversified lineup now includes twelve offerings that each generate at least $100 million annually.
#What Happened to Coinbase's Stock?
Following the release of its earnings report, Coinbase shares experienced a 7.9% drop on Thursday. However, there was a slight recovery, with a rebound of 3% in after-hours trading. This volatility reflects the market's reaction to the mixed signals provided by the earnings data and the company's future outlook.