Compiled by: Felix, PANews
The cryptocurrency trading platform Coinbase announced itsfinancial performance for the second quarter of 2026 on July 30, Eastern Time. The financial report shows that the company's revenue for the second quarter was $1.22 billion, below the general market expectation of $1.29 billion. Trading revenue was $599 million, falling short of the expected $628 million. The net loss for the second quarter was $359.5 million.
Before the financial report was released, Coinbase (COIN) saw its stock price increase by 2.18%, closing at $163.58, but due to the revenue not meeting Wall Street expectations, the stock price fell by about 5.12% in after-hours trading.
Against the backdrop of a decline in total trading volume in the cryptocurrency market (down 15% quarter-over-quarter) and a drop in cryptocurrency spot trading volume (down 25% quarter-over-quarter), Coinbase's total revenue decreased by 14% quarter-over-quarter, reaching $1.22 billion. Overall trading revenue fell by 21% quarter-over-quarter, performing better than the overall decline in cryptocurrency spot trading volume.
Of this, due to the 24% decline in retail cryptocurrency spot trading volume, retail trading revenue was $452 million (down 20% quarter-over-quarter), while institutional trading revenue was $100 million (down 26% quarter-over-quarter), consistent with the overall market decline trend. Other trading revenue was $47 million, down 11% quarter-over-quarter.
Despite the overall market weakness, Coinbase's market share in cryptocurrency trading volume reached a historical high of 10.3%, achieving growth for the third consecutive quarter.
Stablecoin revenue reached $292 million, and blockchain rewards revenue was $83 million. Interest and financing fee revenue reached $66 million, primarily benefiting from a record high average borrowing balance in DeFi, though partially offset by interest rate fluctuations.
From the revenue structure perspective, Coinbase's revenue sources are showing diversification trends. Coinbase CEO Brian Armstrong also pointed out that the company is expanding its business beyond spot trading to include stablecoins, Base, and prediction markets.
Firstly, the proportion of non-Bitcoin spot trading revenue has significantly increased. In the second quarter, the net income excluding Bitcoin spot trading accounted for 88%, nearly double that of the second quarter of 2020. Subscription and service revenue also rose from $6 million in the second quarter of 2020 to $555 million in the second quarter of 2026, accounting for 48% of the net income for the second quarter.
Secondly, the stablecoin business is steadily growing. In the second quarter, the average value of USDC held in Coinbase products reached a historical high of $20 billion, accounting for over 30% of the total circulation of USDC at the end of the quarter. Over the past year, Coinbase has accounted for about 50% of the total circulation of USDC. Year-to-date, the market stablecoin trading volume has exceeded $37 trillion, of which 79% comes from USDC and Coinbase partner stablecoins, up from 51% for the entire year of 2024. The stablecoin trading volume on the Base Chain has grown seven-fold year-over-year.
Prediction markets have also seen explosive growth. Coinbase's prediction market contracts and revenue doubled in the second quarter, growing 106% quarter-over-quarter, with annualized revenue surpassing $100 million. The cryptocurrency binary options launched at the end of this quarter received a warm response, with daily active traders increasing threefold and daily revenue increasing fourfold.
It is worth noting that Coinbase led on-chain delegation finance in the second quarter. Data shows that over 99% of on-chain delegate transactions were completed using USDC; over 90% of the delegate stablecoin trading volume operated on the Base chain; and over 97% of on-chain delegate transactions utilized Coinbase's x402 protocol.
On the expense side, technology and development expenses were $473 million (down 10% quarter-over-quarter). Sales and marketing expenses were $357 million (down 5% quarter-over-quarter). General and administrative expenses were $240 million (down 10% quarter-over-quarter). Adjusted EBITDA for the second quarter was $208 million, marking the 14th consecutive quarter of positive growth.
Coinbase had laid off 14% of its workforce in May, and at the end of the second quarter, the number of employees was 4,321 (down from 4,988 at the end of the first quarter). Additionally, Coinbase added 819 Bitcoins to its balance sheet in the second quarter, bringing its total holdings to 17,211 Bitcoins, a quarter-over-quarter increase of 5%.
Although by July 26, Coinbase had recorded approximately $130 million in transaction revenue for the third quarter, the outlook remains constrained by the sluggish prices of crypto assets.
Regarding the second quarter financial report and Coinbase's development in 2026, Brian Armstrong stated in the earnings call, “Coinbase is no longer just betting on the price of Bitcoin. All financial services are being transformed by cryptocurrency, whether it is trading, payments, or lending, and Coinbase is the most capable company globally to drive this change.”
In the future, Brian Armstrong emphasized three main priorities: firstly, to develop around the "everything exchange," bringing all asset classes on-chain and consolidating them on one platform. Secondly, stablecoin payments, allowing funds to flow globally at internet speed. Lastly, on-chain transactions, ensuring that transactions and payments can be placed on-chain, thereby improving efficiency.
Related reading: Coinbase's first quarter report card: a loss of nearly $400 million, but trading share reaches all-time high, transforming into an everything exchange
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