Coinbase Stock Dives as Company Misses Q2 Revenue Forecasts

Coinbase clocked $1.5 billion in total revenue, a 25% drop from the previous financial quarter, as the trading platform faced financial fallout from its May data breach but also experienced upside from its investment in the recently publicly listed stablecoin issuer Circle, the company said in its second-quarter earnings statement. 

The trading platform’s second-quarter revenue came in roughly 6% below analysts’ forecasts of $1.59 billion, according to FactSet data. Adjusted earnings (ebitda) of $512 million dropped more than 13% from the same quarter a year ago.

The company posted $1.4 billion in net income, up from the $66 million in Q1 with the jump due to the value of its stake in Circle and crypto holdings appreciating, the company said. 

“Crypto markets were softer in quarter two compared to quarter one…markets are not linear,” Coinbase’s Vice President of Investor Relations Anil Gupta told Decrypt, noting crypto prices and volatility trended down in the second quarter.”Those were kind of two big macro factors that were headwinds to the overall trading environment,” he said. (edited) 

Coinbase’s latest earnings come as the firm has looked to expand and been buoyed by the crypto favoring political environment in the U.S. On Thursday, the company divulged its plan for a new “everything exchange” that would launch first in the U.S. and then in foreign markets over the next couple of months, CNBC reported on Thursday. The platform will offer tokenizied real-world assets equities, derivatives, and early-stage token sales, in addition to contracts for real-world event outcomes, Coinbase’s vice president of product told CNBC. 

But the firm also faces challenges, including growing geopolitical tensions and increased competition.

Crypto prices took a hit briefly as Israel and Iran exchanged missile fire earlier last month, but investors largely shook off other uncertainties, including U.S. President Donald Trump’s back-and-forth trade talks that roiled global markets in April.

Bitcoin’s price rose roughly 26% in the three-month period ending on June 30, with the token surpassing $107,000 on that day. (The token gained even more ground since then, hitting a record high near 122,850 in July before retreating to its current level near $118,000).  

Coinbase’s stock was down more than 6% in after markets trading to change hands at $353. COIN hit a record high near $420 in July and is up roughly 45%  since the beginning of 2025.

In May 2025, Coinbase bought Deribit, an options trading platform that controls roughly 80% of the digital assets derivatives market, for nearly $3 billion, making it the largest acquisition in crypto industry history. The company has so far acquired six businesses this year.

The exchange is one of several major crypto industry players snapping up service providers across the digital asset landscape as the blockchain industry is poised for significant growth under self-proclaimed crypto champion President Trump’s administration. 

The crypto industry’s mergers-and-acquisitions activity increased from the fourth quarter of 2024 to the first quarter of this year, with digital asset firms announcing 61 deals in the first three months of 2025, according to data provider Architect Partners.  

UPDATE (July 31, 2025, 5:25 p.m. ET): Adds quote from Coinbase. 

UPDATE (July 31, 2025, 5:46 p.m. ET): Adds paragraph about “everything exchange.”