Coinbase Global, Inc. (NASDAQ: COIN) — the largest publicly traded cryptocurrency exchange in the United States — reported a GAAP net loss of $667 million for the fourth quarter of 2025, marking its first quarterly loss since Q3 2023. The company attributed the decline primarily to unrealized markdowns on its crypto investment portfolio and strategic stakes, which overshadowed otherwise resilient revenue streams and core operations.
The exchange’s quarterly revenue came in at approximately $1.78 billion, down about 22 % year-over-year and slightly below Wall Street expectations, as trading activity softened amid a broader decline in cryptocurrency prices.
Net Loss Driven by Unrealized Investment Losses
Coinbase’s earnings letter showed that the company recorded a $667 million net loss in Q4 2025, largely driven by:
- ~$718 million loss on its crypto asset investment portfolio, reflecting unrealized markdowns due to lower digital-asset prices.
- ~$395 million loss on strategic investments, including positions such as in Circle and other venture holdings.
These non-cash charges eroded the firm’s profitability despite adjusted EBITDA remaining positive at $566 million and adjusted net income of $178 million.
Revenue Decline and Segment Trends
Total revenue of roughly $1.78 billion reflected a year-on-year decrease from prior periods and included:
- Transaction revenue of about $983 million, down materially as trading volumes softened with the broader market downturn.
- Subscription and services revenue of roughly $727 million, which grew modestly but was not sufficient to offset the steep markdowns.
Despite the overall revenue decline, Coinbase’s diversification into stablecoin-related services and subscriptions helped mitigate some of the downside, with stablecoin revenue emerging as a notable growth area.
First Loss Since 2023, Shares React
The $667 million loss marks Coinbase’s first quarterly deficit since the third quarter of 2023, interrupting a streak of eight profitable quarters. The surprise loss and revenue miss led to negative reactions in the equity market, with COIN stock trading lower in after-hours sessions.
Company executives highlighted that the net loss reflected market-driven valuation effects rather than operational decline, noting that the core business continues to generate strong cash flow and that the firm maintained over $11 billion in cash and equivalents at year-end.
Market Backdrop and Industry Risks
Coinbase’s quarterly results coincide with broader weakness in the cryptocurrency market, where major assets like Bitcoin(BTC) and Ethereum (ETH) have experienced significant price drawdowns from late-2025 peaks. The loss of momentum in retail trading and heightened volatility contributed to lower transaction fees — traditionally the bulk of Coinbase’s revenue.
Analysts say the financial performance highlights the challenge of operating a digital-asset exchange in a cyclical market where price declines not only reduce trading volumes but also impact the valuation of held crypto portfolios.
Outlook and Strategic Priorities
In discussing outlook, Coinbase reiterated its focus on product diversification — including subscriptions, services, stablecoin activity and international market expansion — as part of a long-term strategy to reduce reliance on trading fees alone. Leadership also noted ongoing investments in compliance, security and institutional services, positioning the firm to capture future market growth when conditions improve.
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