NEW YORK, August 1, 2026, 09:10 EDT
- Coinbase ended Friday at $146.26, falling 10.6%. Its trading volume was 2.4 times higher than its 65-day average.
- Revenue for the second quarter declined 18.5% to $1.22 billion. The company posted a net loss of $359.5 million.
- USDC’s average market capitalization climbed 26%. Associated revenue dropped 4%, and USDC rewards expenses grew 16%.
U.S. stock markets did not open on Saturday. Coinbase finished Friday trading at $146.26, falling 10.6%. The stock reached a 52-week low of $139.11.
The stock declined 7.6% during the week, while the Nasdaq Composite advanced 1.6%. Trading volume on Friday totaled 20.9 million shares, 2.4 times the 65-day average.
Monetization remains the primary investor concern, rather than product range. USDC’s average market capitalization increased by 26% from a year earlier. In contrast, related revenue declined 4%, and USDC rewards expenses increased by 16%.
Friday’s cross-market scoreboard highlighted the disparity. Equity data reflects closing prices, while for Bitcoin, the daily mark from the data provider is used.
| Market reference | Friday close | Friday move | Weekly move |
|---|---|---|---|
| Coinbase Global | $146.26 | -10.59% | -7.60% |
| Robinhood Markets NASDAQ:HOOD | $86.56 | -0.05% | -8.80% |
| Circle Internet Group NYSE:CRCL | $62.61 | -2.54% | +0.40% |
| Bitcoin | $62,875.50 | -2.92% | -1.98% |
| Nasdaq Composite | 25,373.85 | +1.00% | +1.60% |
Bitcoin’s weekly drop was much less pronounced compared to Coinbase’s. Circle, which issues USDC, recorded a small gain. Robinhood declined more sharply over the week, though its movement on Friday was limited. The company’s crypto transaction revenue for the second quarter fell by 38%.
Coinbase reported a GAAP net loss for the third quarter in a row, as revenue declined 18.5% to $1.22 billion. The figure came in below the preliminary analyst consensus of $1.29 billion released on Thursday.
| Q2 metric | 2026 | 2025 | Change or benchmark |
|---|---|---|---|
| Total revenue | $1.220 billion | $1.497 billion | Down 18.5%; missed $1.29 billion early consensus |
| Net income or loss | -$359.5 million | +$1.429 billion | $1.788 billion decline |
| Diluted EPS | -$1.36 | +$5.14 | Compared to -$0.44 early consensus |
| Transaction revenue | $599.2 million | $764.3 million | Fell 21.6% |
| Subscription and services | $555.1 million | $632.2 million | Down 12.2% |
| Adjusted EBITDA | $207.8 million | $512.1 million | Dropped 59.4% |
The GAAP loss reflected a $209.5 million crypto investment mark. Company-adjusted net loss totaled $104.9 million, up from $45.6 million in the prior quarter.
Analysts gave differing views. Raymond James Financial NYSE:RJF noted that “crypto trading conditions remain challenging.” Zacks strategist David Bartosiak said the “business mix keeps improving.” Subscription and services contributed 48% of net revenue, up from 45% in the previous year. Reuters
According to company figures and calculated ratios, both patterns are evident. Revenue streams broadened, while earnings coverage saw a decline.
| Operating indicator | Q2 2026 | Comparison | Change |
|---|---|---|---|
| Portion from subscription and services | 48% | 45% in Q2 2025 | +3 percentage points |
| Net revenue excluding Bitcoin spot | 88% | About 45% in Q2 2020 | +43 percentage points |
| USDC average market cap | $77 billion | $61 billion in Q2 2025 | +26% |
| Revenue from stablecoins and corporate balances | $320 million | $332 million in Q2 2025 | -4% |
| USDC-related rewards expense | $119.1 million | $102.5 million in Q2 2025 | +16% |
| Revenue minus USDC rewards | $200.9 million | $229.5 million in Q2 2025 | -12.5% |
| Stock-based compensation as a share of adjusted EBITDA | 115% | 38% in Q2 2025 | +77 percentage points |
A straightforward calculation prior to accounting for other stablecoin-related and corporate expenses.
Coinbase reported that stablecoin revenue fell by $55.9 million due to lower average rates. An increase in customer balances only partially offset this decrease. The company also noted a 73-basis-point decline in average earned rates impacting corporate interest income.
USDC rewards spending increased by $16.6 million. Revenue after deducting rewards declined by $28.6 million. Share-based compensation totaled $238.3 million, surpassing adjusted EBITDA by $30.5 million. Coinbase reported that buybacks have neutralized more than 85% of stock-compensation given out since late 2024.
Chief Executive Brian Armstrong stated Coinbase was “no longer a bet just on the price of Bitcoin.” The company’s revenue makeup reflects that statement. Earnings are still vulnerable to fluctuations in interest rates, crypto prices and compensation expenses. Coinbase Investor Relations
Third-quarter projections indicated no quick improvement to margins. Subscription and services revenue is estimated between $500 million and $580 million, with the midpoint marking a 2.7% decrease from Q2. Adjusted expenses are expected to stay about the same, and stock compensation is projected to be around $245 million.
This exposes Coinbase to fluctuations in rates on both sides. A drop in rates diminishes the returns on USDC holdings, while persistently elevated rates may dampen crypto appetite. Upcoming labor data next week will thus be doubly significant. The economist median estimates listed below are early projections.
| Date | U.S. catalyst | Preliminary median forecast |
|---|---|---|
| Monday, August 3 | ISM manufacturing index | 54.0 |
| Tuesday, August 4 | June job openings | 7.5 million |
| Wednesday, August 5 | Private payroll figures; ISM services | 75,000; 54.4 |
| Friday, August 7 | July payroll numbers; unemployment rate | 85,000; 4.3% |
Armstrong expressed confidence that the CLARITY Act could be brought to a Senate vote. The Senate resumes session on Monday before starting its state work period on August 10. The bill is still listed on the legislative calendar, though as of Saturday, no floor vote had been scheduled.
Risks: A more pronounced downturn in cryptocurrencies would affect both transaction revenues and investment valuations. Declining interest rates may place additional strain on USDC earnings, while rising rates could weigh on trading activity. Delays in regulatory progress and ongoing stock-based pay could also impact Coinbase’s valuation.
Related articles: NASDAQ:HOOD
