Coinbase Q2 Revenue Miss as Trading Volume Drops 40%

Coinbase Q2 revenue fell 26% quarter-on-quarter to $1.5 billion, missing analyst expectations. Transaction revenue dropped 39% to $764 million as global crypto spot volumes slid 31% and US volumes fell 32%. Overall trading volume plunged 40% to $237 billion. Subscription and services revenue dipped 6% to $656 million, while stablecoin-related revenue rose 12% to $332 million. Operating expenses increased 15% to $1.5 billion, driven by a $307 million data breach charge. Adjusted net income was $33 million, and adjusted EBITDA reached $512 million. Coinbase shares slid 11% pre-market on the earnings miss. Looking ahead, Coinbase expects Q3 subscription and services revenue between $665 million and $745 million. The firm highlighted regulatory wins under the GENIUS and CLARITY Acts to boost stablecoin adoption and market clarity. On the product front, the Base App beta on Ethereum Layer 2 has surpassed 700,000 users and will evolve into an “everything app” with trading, social feeds, tokenized posts, USDC payments, mini-apps and AI features. Base Pay with 1% USDC cashback for Shopify merchants is also in the pipeline. These results underline the sensitivity of Coinbase Q2 revenue to crypto market activity.