Coinbase’s earnings just ended its streak, and not in a good way. After eight straight winning quarters, the company posted a brutal net loss of $667 million in the fourth quarter of 2025. That’s a punch in the face.
As cryptocurrency prices have fallen from their yearly highs, the stock market has completely missed Wall Street’s revenue expectations.
Revenues totaled $1.78 billion. That sounds huge, but it was lower than the $1.85 billion analysts expected. Trading revenue was the real damage. Down 37% to $982.7 million.
This tells you everything about current trader activity.
Key takeaways
- Coinbase reported a net loss of $667 million, its first shortfall since the third quarter of 2023.
- Revenue fell 21.5% year-over-year to $1.78 billion, beating analysts’ expectations.
- Transaction fees fell 37% as retail traders left the market.
- Shares (COIN) fell 7.9% intraday but rebounded nearly 3% after hours.
Is the bull market officially over? How Coinbase can survive it
This $667 million loss isn’t just a bad quarter. This speaks to deeper cycle weakness. Much of this loss came from unrealized losses on Coinbase’s crypto holdings after prices collapsed from October 2025 highs.
When Bitcoin drops from almost $126,000 to $60,000, no one escapes unscathed. Not even the exchanges.
This type of volatility resembles the uncertainty of the FTX fallout days. Brian Armstrong always describes this slowdown as psychological.
An overview of our fourth quarter and full year 2025 financial results.
With something extra to keep you focused. pic.twitter.com/LehRsH1Yjn
— Coinbase
(@coinbase) February 12, 2026
(@coinbase) Retail traders are barely active. Transaction revenue, the main driver of the business, dried up as volume declined.
Occasional money remains aside. And that’s the last thing Coinbase needed.
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Resilience of COIN stocks or dead cat rebound?
Even after that ugly earnings report, COIN stock actually soared 2.9% after hours, hovering near $145. Sounds crazy, right?
But the stock had already fallen 7.9% during the ordinary session. Traders probably priced in the disaster before the numbers even appeared.
However, the outlook is not really reassuring. Subscription and service revenue was the only real bright spot, up 13% to $727.4 million.
This helped soften the shock. But management is already forecasting a decline for the first quarter of 2026, expecting that figure to be between $550 million and $630 million. It’s not nothing.
Even if so-called stable income begins to decline, the safety cushion is rapidly diminishing. And if that happens, a retest of the $139 area, near the 52-week low, would not be surprising at all.
Find out: What is the next crypto to explode?
The article Coinbase Reports $667M Q4 Loss as Crypto Market Slowdown Hits Revenue appeared first on Cryptonews.
