Coinbase reported quarterly losses as it expanded into derivatives, stablecoins, and new markets to reduce reliance on crypto exchanges.
Summary
- Coinbase has diversified its business into the future, global expansion, and new financial products.
- Market volatility and low trading activity weighed on short-term performance.
- Management remains focused on long-term sustainability and revenue balance.
Coinbase Global, Inc. reported a net loss of $670 million in the fourth quarter of 2025, despite posting record performance metrics for the full year, according to an earnings report released on Feb. 12.
The company said its Q4 results were in line with internal expectations, even with the weak conditions of the crypto market towards the end of 2025 weighing on transaction revenue and profit.
Strong growth, weak bottom line
In its letter to shareholders, Coinbase has shown significant gains in trading activity and product adoption through 2025. Although its share of the crypto market doubled to 6.4%, the total trading volume reached $5.2 trillion, an increase of 156% year-on-year.
Revenue from subscriptions and services also reached a record $2.8 billion, reflecting increased demand for non-trading products such as stablecoins, staking, and custodial services. Coinbase One’s paid subscribers have risen to nearly one million, a three-fold increase over the past three years.
“We’ve driven a lot in our products,” said CEO Brian Armstrong. “All Exchange is working, and we are well positioned for 2026.”
Chief financial officer Alesia Haas added that the company met or exceeded its revenue and expense targets for the year, extending what she described as a multi-year track record of good performance.
However, soft market conditions in the final months of 2025 reduced trading activity and lowered commodity prices, putting pressure on Coinbase’s core business. According to GAAP accounting standards, these components contributed to the net loss for the quarter.
It extends beyond local trade
As part of its “Everything Exchange” strategy, which aims to bring various asset classes into one place, Coinbase continued to grow beyond spot trading in 2025.
The company launched a 24/7 US-style perpetual futures, expanded its global reach with the acquisition of Deribit, and introduced new products such as stock trading and prediction markets. At the same time, stablecoin services and institutions were further developed.
These efforts are designed to reduce dependence on traditional crypto exchanges and make income insensitive to price fluctuations. As a result, the estimated value of USD Coin (USDC) on the platform rose to $17.8 billion, while assets held by clients tripled in three years. By 2025, more than 12% of the world’s crypto was stored on Coinbase.
After the earnings report was released, Coinbase shares fell nearly 8% as the broader digital asset market weakened. Analysts point to continued volatility and an uncertain trading price as the biggest short-term risks.
However, the company ended 2025 with a strong financial position, holding $11.3 billion in cash and cash equivalents. It also bought back $1.7 billion worth of stock during the year. Early 2026 showed signs of recovery, with nearly $420 million in revenue recorded in early February.
