Coinbase Misses Q1 Revenue Target, Trading Volume Falls

Coinbase Global Inc. reported a shortfall in its Q1 2025 revenue, announcing the results on May 8, 2025. Trading activity also fell 10% affecting the company’s financial performance.

The recent earnings miss highlights potential structural challenges amid Bitcoin’s surge. This caused a notable decline in trading, leading to a dip in Coinbase’s stock.

With revenue falling short of analysts’ expectations, posting $2.03 billion against an anticipated $2.2 billion, Coinbase reported a 10% drop in trading activity. This quarter’s earnings per share also fared poorly, sitting at $0.24, notably lower than the predicted $2.09.

Consumer trading volume saw a substantial 17% decline, while institutional volume went down by 9%. These factors contributed to a 3.34% drop in after-hours stock prices, affecting Coinbase’s market presence.

Subscription and services revenue increased by 9%, coupled with a 32% growth in the stablecoin sector, contrasting trading’s downturn. Despite Bitcoin nearing $100,000, Coinbase’s trading volumes remain low.

“Despite disappointing results, we are continuing to pursue growth opportunities and diversification of our product offerings.” — Brian Armstrong, CEO, Coinbase Source

The disparity between soaring Bitcoin prices and decreasing trading volumes might indicate shifts in investor behavior. Analysts adjusting earnings expectations downward underscore doubts about Coinbase’s near-term returns.

The ongoing efforts by Coinbase to expand into diverse revenue streams through acquisitions like Derivat highlight a strategic pivot. As USDC balances jumped 49% quarter-over-quarter, the platform’s focus on sustainability amidst trading declines becomes evident.