Coinbase posts second consecutive quarterly loss as stock falls 15%

Coinbase reported a net loss of $394.1 million in the first quarter of 2026, marking another quarterly loss, as a sharp decline in crypto trading volumes significantly impacted the company’s results.

The loss, equivalent to $1.49 per share, came as a significant reversal from a profit of $65.6 million, or 24 cents per share, in the same quarter a year earlier. Analysts had forecast a profit of 27 cents per share. Shares fell about 5% in after-hours trading on Thursday and are now down nearly 15% this year.

Total revenue dropped to $1.43 billion from $2.03 billion a year earlier. Transaction revenue, the company’s core income stream, slumped about 40% to $756 million, while its subscription and services business declined 13.5% to $583.5 million.

Chief Financial Officer Alesia Haas pointed directly to deteriorating market conditions. “Macro conditions were genuinely tough. Total crypto market cap and total crypto trading volume were both down more than 20% quarter-over-quarter,” she said on the company’s earnings call.

Rising Middle East tensions added to the pressure, pushing investors toward safer assets and away from risk-sensitive positions like cryptocurrency.

Coinbase’s job cuts and a leaner outlook

Earlier this week, Coinbase cut approximately 700 jobs, about 14% of its global workforce, as the company moved to reduce costs and reposition itself ahead of what it describes as the next crypto cycle. CEO Brian Armstrong said the cuts were necessary to help the firm “emerge leaner” given current market conditions.

The cryptocurrency market is currently facing challenges. After reaching record highs in October of last year, trading activity on digital-asset exchanges has decreased considerably since the beginning of 2026.

This decline is due to weakening price increases and general economic uncertainty, which have reduced investors’ willingness to take risks. Similarly, Robinhood Markets reported lower-than-expected revenue and profits last month due to these same factors.

Also read: The $30bn Bitcoin wipeout: Inside the Q1 losses for MicroStrategy and American Bitcoin

Coinbase’s Chief Legal Officer, Paul Grewal, believes the Clarity Act will become law by the end of summer 2026. This bill aims to create clear rules for digital assets in the U.S. He expects a vote on the bill in early summer. The crypto industry is paying close attention to the Clarity Act, introduced in May 2025, because it could bring stability to the market.