Coinbase quarterly loss deepens as retail users leave; USDC deal to renew
Coinbase posts third straight quarterly loss as retail traders cut back activity, worsening the exchange’s fiscal impact and highlighting a broader crypto trading slowdown.
For the quarter ended June 30, Coinbase revenue fell to $1.22B (down 13.2% QoQ and 18.5% YoY). Coinbase quarterly loss was just under $360M, a slight improvement vs. Q1’s $394M loss, but far below the profit in Q1’25. Monthly transacting users (MTUs) dropped to 7.6M from 8.2M in Q1 and 8.7M in Q2’25. Transaction revenue totaled $599.2M (-21% QoQ), with consumer transaction revenue down to $451.7M (-20% QoQ). Spot volume fell 24% to $146.4B; consumer spot volume declined 23.7% to $25.8B.
Management pointed to share gains in “crypto trading volume market share” (10.3%), supported by derivatives (perpetual futures). Derivatives volume fell only 2.3% to $1.06T, while stablecoin activity was mixed: stablecoin trading slid 23.4% to $7.5B, but mint/burn conversion rose 2.5% to $85.2B.
On stablecoins, Coinbase says its Circle USDC partnership will renew when the current deal ends in August, and it plans to be a multi-stablecoin platform while supporting OpenUSD (OUSD). Coinbase’s Subscription & Services segment revenue was $555.2M, with stablecoin revenue (largely USDC) down ~5% to $292.1M.
Coinbase also reported prediction-market momentum (annualized “$100M+” revenue, without hard quarterly figures) and a rising Coinbase One subscriber base (1M+), though trading-led economics remain under pressure.
Looking ahead, transaction revenue was $130M through July 26, suggesting a weak Q3 if trends persist.
Bearish
Coinbase quarterly loss signals a demand-side problem: retail activity and spot volumes are shrinking (MTUs and consumer volume both down sharply). When a major exchange reports persistent quarterly losses alongside thinning trading flows, traders typically expect lower fee generation and weaker spot liquidity, which can cap upside momentum.
In the short term, the market may remain risk-averse because Coinbase guided Q3 transaction revenue to an already weak pace ($130M through July 26). That tends to pressure sentiment around high-beta trading and meme-driven activity.
In the long term, the article suggests Coinbase is leaning on Subscription & Services and stablecoin infrastructure (USDC) to stabilize revenue. USDC renewal reduces a key partnership risk, but stablecoin trading revenue fell while interest-rate sensitivity remains a factor—so the revenue mix may stabilize slowly rather than quickly.
This resembles past exchange-report patterns where declining user activity led to multiple quarters of cost and revenue pressure; even if derivatives share holds up, weaker retail spot behavior usually translates into choppier market rallies and more selective liquidity.