Coinbase Global shares plunged more than 12% on July 31, 2026, following the cryptocurrency exchange's second-quarter earnings report.
The company posted a net loss of $359 million, or $1.36 per share, compared to a net profit of $1.43 billion in the same period last year.
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Excluding unrealized cryptocurrency losses, the net loss was $105 million, missing Wall Street's expected loss of $0.44 per share.
Net revenue declined between 17% and 18.5% year-over-year to $1.15 billion, according to Yahoo Finance, while Morningstar reported $1.22 billion.
Adjusted EBITDA fell 59% from the prior year to $208 million, missing consensus estimates by a third.
The ongoing cryptocurrency market slowdown reduced asset prices and volatility, leading to a 22% drop in transaction revenue to $600 million.
Trading and staking revenues declined by 21.6% and 43%, respectively.
Following the earnings release, Mizuho adjusted its outlook on the company.
Analyst Dan Dolev noted, "We like the direction … but the near-term setup is tough."
The bank lowered its price target for Coinbase shares from $200 to $155.
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Non-trading subscription and services revenue fell 12% from a year ago to $555 million.
However, income from stablecoins, interest, financing fees, and staking helped cushion the decline, generating 48% of total quarterly revenue.
During an analyst call on July 30, 2026, CEO Brian Armstrong emphasized customer engagement and market positioning.
"At any given time in trading, there's always something that's up and something that's down," he said.
Armstrong added that part of the long-term strategy relies on keeping product offerings diverse to capitalize on demand whenever specific markets surge.
Competitive pressure mounted as traditional brokerage apps reported stronger earnings driven by stock and semiconductor rallies.
While rivals like Robinhood and Charles Schwab posted higher trading fee revenue, Coinbase faced softer trading activity across its primary asset class.
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Morningstar maintained its fair value estimate of $150.00 for the company, noting that Coinbase holds over $8.5 billion in cash and investments to navigate extended market weakness.
