Coinbase (NASDAQ: COIN) reported underwhelming Q2 2025 results on July 31, triggering a 5-7% drop in its share price during after-hours trading to approximately $358.89. The crypto exchange posted total revenue of $1.5 billion, marking a 26% quarter-over-quarter decline and falling short of FactSet's $1.59 billion estimate. Transaction revenue plummeted 39% QoQ to $764 million, while subscription and services revenue dipped 6% to $656 million.
Operating expenses surged 15% QoQ to $1.5 billion, partly driven by $307 million in costs related to a data theft incident. Adjusted EBITDA stood at $512 million, down from $596 million year-over-year, with adjusted net income at $33 million after excluding $1.86 billion in unrealized investment gains. The company held $9.3 billion in total resources and $1.8 billion in crypto assets, maintaining 4,279 full-time employees.
Coinbase attributed the revenue slump to declining transaction volumes despite Bitcoin and Ethereum hitting yearly highs during Q2. This contrasts sharply with rival Robinhood, which reported $28.3 billion in crypto trading volume. For Q3, Coinbase forecasts subscription revenue between $665-$745 million and plans to expand its Base layer-2 network, describing it as "faster, cheaper, and open" while building toward an "everything exchange" for on-chain trading.
Leadership anticipates regulatory tailwinds under the new Trump administration, citing a shift from the "crypto-hostile Biden Administration" to an "innovation-friendly" climate.