Coinbase posts $667M Q4 loss, revenue down 31% to $1.78B; stablecoins and derivatives offset weakness

Coinbase reported a weak Q4 2025 with a $667 million net loss and EPS of -$2.49, missing expectations as total revenue fell 31% year‑over‑year to $1.78 billion. Transaction revenue was $983 million (down 6% QoQ) while subscription & services revenue was $727 million (down 3% QoQ). Consumer spot trading volume and revenue declined (consumer volume $56B, revenue $734M), but institutional revenue rose 37% to $185M driven by strength in derivatives despite lower institutional spot volumes. Operating expenses increased 9% to $1.5B due to higher tech, admin and sales costs and roughly $250M of stock‑based compensation; headcount rose 3% to 4,951. Coinbase One subscribers reached 971,000. Stablecoin-related balances hit a record (average USDC up 18% to $17.8B) and stablecoin revenue grew to $364M, although interest income fell 8% to $60M after rate cuts. The company repurchased $1.7B of stock and ended the year with $11.3B in cash and equivalents (including USDC). For Q1 2026 the firm guided subscription & services revenue of $550M–$630M, expects flat spending, and signaled continued transaction expense ratios and approximately $250M in stock‑based comp. Key takeaways for traders: near‑term pressure on COIN shares from weaker revenue, a net loss, and rising operating costs; potential offsets include record USDC balances, stronger institutional derivatives revenue, and share buybacks that support capital returns.