Coinbase Q2 Revenue: $1.5B Haul Can’t Mask 26% Drop—Wall Street Left Wanting

Coinbase just flashed its Q2 numbers—$1.5 billion in revenue—but the crypto giant's report card isn’t all green candles.

The cold hard stats:
That figure marks a 26% nosedive from Q1, leaving analysts scratching their heads and shareholders reaching for the sell button. Even in a market where 'volatility' is the middle name, this miss stings.

Behind the dip:
Blame it on the crypto winter’s lingering chill or traders glued to meme coins—either way, the exchange’s ‘growth story’ just hit a speed bump. And let’s be real: when your business lives and dies by retail FOMO, even a 1% drop feels like a bear market.

The silver lining?
$1.5B still buys a lot of lambos—but in traditional finance terms, it’s just another Tuesday where revenue ‘unexpectedly’ fails to moon. Maybe next quarter, folks.

Stablecoin revenue supports growth

Coinbase’s subscriptions and services revenue grew 9% year-over-year to $655.8 million, supported by stablecoin income. Stablecoin revenue alone ROSE 12% from Q1 to $332 million, boosted by its revenue-sharing deal with Circle, the issuer of USD Coin (USDC). Coinbase keeps 100% of revenue on USDC held on its platform and about 50% from USDC activity elsewhere.

Still, overall subscription and services revenue came in below analyst expectations of $705.9 million. Blockchain revenue within this segment dropped 22% from a year ago to $144.5 million, while other subscription income rose nearly 72%.

Retail activity slows ahead of new product push

While institutional trading volume of $194 billion beat estimates, retail trading, typically more profitable, lagged. The slowdown followed Q1’s stronger performance, as investor attention shifted from crypto to tariffs and policy headlines in Washington.

Coinbase shares fell 6% in extended trading following the results. However, year-to-date, the stock is still up over 50%, outperforming the S&P 500, which it joined in May.

Looking ahead, Coinbase plans to broaden its consumer offerings. The company announced it will soon launch tokenized real-world assets, derivatives, prediction markets, and early-stage token sales on its app, starting with U.S. users.