Coinbase Global (NASDAQ:COIN) Issues Quarterly Earnings Results, Misses Estimates By $0.92 EPS

Coinbase Global, Inc. (NASDAQ:COIN) posted its quarterly earnings results on Thursday. The cryptocurrency exchange reported ($1.36) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.44) by ($0.92), FiscalAI reports. The business had revenue of $1.22 billion during the quarter, compared to analyst estimates of $1.29 billion. Coinbase Global had a positive return on equity of 3.04% and a negative net margin of 15.72%.The business’s revenue for the quarter was down 18.5% on a year-over-year basis. During the same period last year, the company earned $5.14 EPS.

Here are the key takeaways from Coinbase Global’s conference call:

• Coinbase’s Circle partnership will renew on the same terms after the company met the contract conditions, reducing uncertainty around its USDC economics.
• Management highlighted continued revenue diversification, including prediction markets, perpetual futures, stock trading, subscriptions and services; Coinbase One surpassed 1 million subscribers and members are showing higher engagement, retention and overall unit economics.
• Coinbase reported early traction from new products, with growth marketing payback typically around one year and prediction-market users appearing to generate incremental spot trading rather than cannibalizing existing volume.
• Management remains bullish on Base and agentic finance, citing Base’s low-cost, fast settlement, leadership in stablecoin transfers and its position as the primary network for emerging AI-agent transactions.
• Coinbase remains optimistic that the CLARITY Act will advance, but said it could continue operating if the legislation fails because SEC and CFTC leadership may establish rules independently; management nevertheless believes congressional legislation would provide greater long-term durability.

Coinbase Global Trading Down 10.6%

NASDAQ:COIN traded down $17.32 during trading hours on Friday, hitting $146.26. 20,822,632 shares of the stock were exchanged, compared to its average volume of 6,209,030. The company has a market capitalization of $38.53 billion, a P/E ratio of -38.09, a price-to-earnings-growth ratio of 11.88 and a beta of 3.35. The company has a quick ratio of 2.14, a current ratio of 2.14 and a debt-to-equity ratio of 0.44. The company’s 50 day moving average is $163.23 and its two-hundred day moving average is $181.72. Coinbase Global, Inc. has a twelve month low of $139.11 and a twelve month high of $402.16.

More Coinbase Global News

Here are the key news stories impacting Coinbase Global this week:

• Positive Sentiment: Coinbase captured a record 10.3% of global crypto trading volume, up from 9.1% in the first quarter, indicating that it is gaining share even as the overall market contracts. Coinbase Hits Record Market Share Despite Loss
• Positive Sentiment: Management highlighted growth in derivatives, stablecoins, prediction markets, Base and agent-driven finance as it seeks to become an “everything exchange” less dependent on spot crypto trading. Some analysts believe this diversification could improve resilience during crypto downturns. Coinbase Earnings Call Highlights
• Positive Sentiment: A federal judge dismissed much of a customer lawsuit alleging Coinbase illegally sold unregistered securities, reducing a significant legal overhang, although related litigation risk remains. Coinbase Wins Dismissal in Token Lawsuit
• Neutral Sentiment: Several analysts maintained Buy or Outperform ratings and cited long-term upside, but lowered targets after the earnings report. Needham reduced its target to $177, while Oppenheimer cut its target to $193; Canaccord reaffirmed a $300 target.
• Negative Sentiment: Second-quarter revenue fell about 19% year over year to $1.22 billion, below estimates near $1.3 billion. Transaction revenue declined 21% to $599 million as lower spot-market volumes and subdued volatility hurt trading activity. Coinbase Reports Third Straight Quarterly Loss
• Negative Sentiment: Coinbase posted a GAAP net loss of approximately $359 million, or $1.36 per share, far worse than expectations, marking its third consecutive quarterly loss. Subscription and services growth was not sufficient to offset the trading slump. Coinbase Q2 Results Miss Estimates
• Negative Sentiment: Falling Bitcoin prices and reduced crypto ETF inflows are pressuring the entire crypto-linked equity group. Analysts also cut earnings forecasts, with some projecting a full-year loss, reinforcing concerns that Coinbase remains highly exposed to the crypto cycle.

Insider Transactions at Coinbase Global

In other news, insider Lawrence J. Brock sold 6,616 shares of the business’s stock in a transaction on Friday, May 22nd. The stock was sold at an average price of $189.01, for a total transaction of $1,250,490.16. Following the completion of the sale, the insider owned 517 shares in the company, valued at $97,718.17. The trade was a 92.75% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Paul Grewal sold 1,960 shares of the company’s stock in a transaction on Wednesday, May 27th. The shares were sold at an average price of $176.88, for a total value of $346,684.80. Following the transaction, the insider directly owned 84,753 shares in the company, valued at $14,991,110.64. This trade represents a 2.26% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 30,627 shares of company stock valued at $5,327,841 over the last quarter. Corporate insiders own 16.66% of the company’s stock.

Institutional Investors Weigh In On Coinbase Global

Several institutional investors have recently modified their holdings of the business. Sunbelt Securities Inc. boosted its position in shares of Coinbase Global by 123.9% in the 4th quarter. Sunbelt Securities Inc. now owns 806 shares of the cryptocurrency exchange’s stock worth $182,000 after purchasing an additional 446 shares during the last quarter. Axxcess Wealth Management LLC grew its position in shares of Coinbase Global by 34.5% during the 4th quarter. Axxcess Wealth Management LLC now owns 6,772 shares of the cryptocurrency exchange’s stock worth $1,531,000 after buying an additional 1,738 shares during the period. Corient Private Wealth LLC grew its position in shares of Coinbase Global by 28.6% during the 4th quarter. Corient Private Wealth LLC now owns 18,824 shares of the cryptocurrency exchange’s stock worth $4,257,000 after buying an additional 4,181 shares during the period. Mercer Global Advisors Inc. ADV increased its stake in shares of Coinbase Global by 86.6% in the 4th quarter. Mercer Global Advisors Inc. ADV now owns 22,641 shares of the cryptocurrency exchange’s stock valued at $5,120,000 after acquiring an additional 10,510 shares during the last quarter. Finally, State of Tennessee Department of Treasury increased its stake in shares of Coinbase Global by 4.0% in the 4th quarter. State of Tennessee Department of Treasury now owns 75,815 shares of the cryptocurrency exchange’s stock valued at $17,145,000 after acquiring an additional 2,925 shares during the last quarter. Institutional investors and hedge funds own 68.84% of the company’s stock.

Analysts Set New Price Targets

Several research firms have recently weighed in on COIN. Rothschild & Co Redburn upped their target price on shares of Coinbase Global from $254.00 to $263.00 and gave the stock a “buy” rating in a report on Thursday, May 14th. Piper Sandler cut their price target on shares of Coinbase Global from $155.00 to $146.00 and set a “neutral” rating for the company in a report on Friday. Monness Crespi & Hardt reaffirmed a “sell” rating on shares of Coinbase Global in a research note on Friday, June 5th. BTIG Research decreased their price objective on shares of Coinbase Global from $260.00 to $240.00 and set a “buy” rating on the stock in a research note on Friday. Finally, Wolfe Research set a $325.00 price objective on shares of Coinbase Global in a report on Thursday, July 9th. Eighteen investment analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and an average target price of $221.31.

Coinbase Global Company Profile

Coinbase Global, Inc is a U.S.-based company that operates one of the largest cryptocurrency exchange platforms. Founded in 2012 by Brian Armstrong and Fred Ehrsam and headquartered in San Francisco, Coinbase provides technology and infrastructure to buy, sell, store and use a broad range of digital assets. The company became a public company through a direct listing on the NASDAQ in April 2021 and offers services tailored to both retail and institutional customers.

Coinbase’s product portfolio includes its consumer trading platform, a self-custody mobile wallet, and institutional services such as custody, prime brokerage and execution tools.