The crypto exchange Coinbase posts negative EPS and disappoints Wall Street

The major crypto exchanges are sinking. Each week brings its share of bad news. At Binance, massive leaks are denied. At Coinbase, they are counting the casualties. The American giant has just released its results. Wall Street was expecting a profit. It got a loss. Not a small one. A real one. The first since 2023. And the worst part is that everything seemed to be working.

971,000 subscribers, 667 million losses: the Coinbase puzzle

First, the striking number. Coinbase One now has 971,000 subscribers. Four times more than two years ago. Brian Armstrong is pleased: 

Coinbase One continues to gain ground with retail and institutional clients. We are delighted to see adoption progressing.

Secondly, the other number. The killer number. The crypto exchange shows a net loss of 667 million dollars. Its earnings per share? -$2.49. Analysts expected +$0.96. The market is stunned. How can you lose so much money with so many paying customers? Answer: these customers pay less. Much less. The Coinbase One plan reduces fees.

“Simple trades” migrate to less profitable “advanced trades.” Success in adoption, economic failure. The trap of premiumization has closed.

Retail trading collapses, stablecoins don’t save everything

The core business wavers. Coinbase’s transaction revenue falls below the billion mark. Exactly 983 million. A year earlier, it was 1.56 billion. The drop is dizzying. 

On the retail side, it is worse. Spot volume collapses to 56 billion. Revenue plunges by 13%. Brian Armstrong tries to reassure by saying they observed good resilience in institutional derivatives during the quarter, despite lower spot volumes. 

The “shock absorbers” were supposed to smooth cyclicality. Stablecoins generate 364 million, up. Institutional loans hit records. But it doesn’t help. The loss is there. In its letter to shareholders, the company repeats its mantra: 

Crypto is cyclical, and experience teaches us that it is never as beautiful or as ugly as it seems.

Clarity Act: how Coinbase torpedoed its own regulation

While its accounts are bleeding, Coinbase is playing another game. In Washington. The Clarity Act was supposed to set federal rules for stablecoins. The crypto industry has been waiting for this for years. But Coinbase withdrew from negotiations. Why? Brian Armstrong rejects provisions that cap rewards. The very ones generating 364 million for his company.

In early February, a meeting at the White House ended in a deadlock. Banks and crypto firms eyed each other suspiciously. Result: no legal framework. Stablecoins remain in limbo. And Coinbase stock? It has lost 40% since January. Ultimately, the American giant defends its margins in the short term. But at the cost of sacrificing the stability that could save it tomorrow. All in all, a strange strategy.

Coinbase Q4 2025: the decline in numbers

• Net loss: 667 million dollars, first since 2023;
• Transaction revenue: 983 million, below the psychological one billion threshold;
• Retail trading: -45% year-on-year, the historic engine stalls;
• Coinbase One subscribers: 971,000, but each subscriber generates less revenue;
• Stock: -40% since January, Wall Street no longer believes.

Coinbase is not alone in the turmoil. In recent weeks, Binance has also seen its image tarnished. Rumors of massive withdrawals, amounting to 17 billion, have circulated. The issuer of BNB denied them. It even proposed an annual “Withdrawal Day” to prove its transparency. But once doubt is sown, it grows like weed. The crypto giants cough. The cycle shows no mercy.