Coinbase Global, Inc. reported disappointing fourth-quarter 2025 earnings, revealing a net loss of $667 million, a stark reversal from the $1.3 billion profit recorded in Q4 2024. The loss was primarily driven by a $718 million unrealized writedown on the company's crypto investment portfolio and $395 million in strategic investment losses, including its stake in Circle.
Revenue for the quarter came in at $1.78 billion, marking a 22% decline year-over-year and falling short of the $1.84 billion analysts had expected. Transaction revenue, a core business segment, fell to $983 million, down 6% quarter-over-quarter and a significant 37% below the surge seen in Q4 2024. Operating expenses increased by 9% to $1.5 billion, with stock-based compensation adding another $250 million.
The earnings report triggered volatility in Coinbase's stock (COIN), which fell 7.9% to $141 before the announcement. In after-hours trading, it dropped to $135 before rebounding to $147. By early Friday, the stock had jumped nearly 16% to trade around $163, though it remains down nearly 50% over the past six months.
"It's more of a buy and hold situation. We're not selling any of the portfolio from a profit recognition standpoint," said Anil Gupta, Coinbase VP of Investor Relations, regarding the portfolio loss. CEO Brian Armstrong, who sold over $500 million in personal shares over the past nine months, stated on social media that 2025 was a strong year and the company is positioned to capitalize on crypto updating financial services.
Despite the quarterly loss, Coinbase highlighted several positive annual metrics. Full-year trading volume hit $5.2 trillion, up 156% year-over-year, and its global market share doubled to 6.4%. Stablecoin revenue reached $364 million in Q4, up 61% YoY, and its Coinbase One subscription service grew to 971,000 subscribers. The company also noted it has 12 products generating over $100 million in annualized revenue and holds $11.3 billion in cash.
However, the outlook for Q1 2026 is sobering. Subscription revenue guidance is set at $550-630 million, down from $727 million in Q4. Transaction revenue through February 10 was only $420 million. The challenging environment is compounded by analyst forecasts, including Standard Chartered slashing its year-end Bitcoin target from $150,000 to $100,000 and warning that BTC could fall to $50,000 before a recovery.
