Coinbase Q2 Revenue Plummets 25% Below Forecast – Stock Crashes 6%
Coinbase, one of the largest cryptocurrency exchanges, reported a shocking 25% drop in Q2 revenue, missing forecasts by $90 million. The news sent its stock tumbling 6%, raising concerns about the platform’s growth amid crypto market turbulence. What does this mean for investors and the broader crypto ecosystem?
Why Did Coinbase Q2 Revenue Fall Short?
Coinbase’s Q2 earnings revealed a revenue of $1.5 billion, significantly below the expected $1.59 billion. Key factors contributing to the decline include:
- A major data breach in May 2025 that eroded user trust.
- Lower crypto trading volumes due to reduced market volatility.
- Macroeconomic pressures, including geopolitical tensions.
How Did the Stock Market React?
Coinbase shares dropped over 6% in after-hours trading, falling below $353. This decline contrasted with broader market trends, where many tech and finance firms met or exceeded expectations. The stock had previously surged to $420 in July, but the earnings miss triggered renewed scrutiny.
What’s Next for Coinbase?
Coinbase provided a cautious Q3 revenue forecast of $665–$745 million, dependent on Bitcoin price strength and stablecoin activity. The company’s aggressive expansion, including the $3 billion acquisition of Deribit, adds both opportunities and integration challenges.
FAQs
Why did Coinbase’s revenue decline in Q2?
The drop was driven by lower crypto trading volumes, a data breach, and macroeconomic uncertainties.
How much did Coinbase’s stock fall?
The stock declined over 6% in after-hours trading following the earnings report.
What is Coinbase’s outlook for Q3?
Revenue is projected between $665 million and $745 million, contingent on Bitcoin’s performance.
Did Coinbase make any major acquisitions?
Yes, the company acquired Deribit, a leading digital derivatives platform, for $3 billion.
