Coinbase reported a quarterly loss as it expanded into derivatives, stablecoins and new markets to reduce its reliance on spot cryptocurrency trading.
summation
- Coinbase has diversified its business through futures, global expansion, and new financial products.
- Market volatility and low trading activity weighed on near-term performance.
- Management is focused on long-term stability and profit balance.
Coinbase Global, Inc. reported a net loss of $670 million in the fourth quarter of 2025, according to an earnings report released on February 12, despite posting record operating metrics for the year.
The company said its fourth-quarter results were in line with internal expectations, despite weak cryptocurrency market conditions at the end of 2025, which weighed on trading revenue and profitability.
Strong growth, weak returns
In its shareholder letter, Coinbase highlighted significant gains in trading activity and product adoption throughout 2025. Cryptocurrency market share doubled to 6.4%, while total trading volume reached $5.2 trillion, up 156% year-on-year.
Subscription and services revenue also reached a record $2.8 billion, indicating increased demand for non-traded products such as stablecoins, staking, and custody services. Paid Coinbase One subscribers have tripled over the past three years to nearly 1 million.
“We achieved record highs across our products,” said CEO Brian Armstrong. “Everything Exchange is working and well-positioned for 2026.”
Chief Financial Officer Alesia Haas added that the company met or exceeded its revenue and cost goals throughout the year. This, she explained, expands on her multi-year record of operational discipline.
However, as market conditions eased in the final months of 2025, trading activity declined and asset prices fell, putting pressure on Coinbase’s core trading business. These factors contributed to our quarterly net loss under GAAP accounting standards.
Expand beyond spot trading
As part of its “Everything Exchange” strategy, which aims to integrate various asset classes into a single platform, Coinbase continued to grow beyond spot trading in 2025.
The company introduced 24/7 U.S. perpetual futures, expanded its global footprint through the acquisition of Deribit, and launched new products such as stock trading and prediction markets. At the same time, stablecoins and institutional services have also become more developed.
These efforts are aimed at reducing reliance on traditional cryptocurrency trading and making profits less sensitive to price fluctuations. As a result, average USD Coin (USDC) balances on the platform grew to $17.8 billion and customer holdings tripled over three years. By 2025, more than 12% of the world’s cryptocurrencies will be stored on Coinbase.
After the earnings report was released, Coinbase shares fell about 8% as the broader digital asset market weakened. Analysts have pointed to continued volatility and uncertain trading volumes as key near-term risks.
Nonetheless, the company ended 2025 with a strong balance sheet, holding $11.3 billion in cash and equivalents. It also purchased $1.7 billion worth of stock during the year. Early 2026 showed signs of recovery, with trading revenue reaching approximately $420 million by early February.