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Coinbase reported a $667 million net loss in Q4 2025.
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Revenue fell 5% quarter-on-quarter to $1.8 billion.
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Consumer trading declined, while derivatives and stablecoins showed strength.
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The company continues diversifying into equities, derivatives, and payments.
Trading Slowdown Weighs on Results
Coinbase posted a $667 million net loss in the fourth quarter of 2025, reversing profitability from the previous quarter as crypto markets weakened into year-end.
Total revenue fell 5% quarter-on-quarter to $1.8 billion. Transaction revenue dropped 6% to $983 million, while subscription and services revenue slipped 3% to $727 million.
Consumer trading revenue declined 13%, partly due to lower retail volumes and a shift toward lower-fee advanced trading. Institutional spot volumes also fell, though derivatives activity helped offset some of the decline.
The broader crypto market shed roughly 25% in market capitalization during the quarter, putting pressure on trading activity across exchanges.
Stablecoins and Diversification Efforts
Stablecoin revenue rose 3% to $364 million as USDC balances on Coinbase reached new highs. Derivatives also strengthened, including contributions from recently acquired Deribit operations.
Coinbase ended the year with $11.3 billion in cash and continued share buybacks, repurchasing approximately $1.7 billion in stock.
Despite near-term volatility, the company is expanding into equities, ETFs, prediction markets, and payments infrastructure. Coinbase says it has already generated around $420 million in transaction revenue in the current quarter but cautioned against projecting that forward given ongoing volatility.
