Coinbase posts $670M in Q4 loss as it expands beyond crypto trading

Coinbase reported a quarterly loss as it expanded into derivatives, stablecoins, and new markets to reduce reliance on spot crypto trading.

Coinbase Global, Inc. reported a net loss of $670 million in the fourth quarter of 2025, despite posting record operational metrics for the full year, according to its earnings report released on Feb. 12.

The company said its Q4 results were in line with internal expectations, even as weaker crypto market conditions in late 2025 weighed on transaction revenue and profitability.

Strong growth, weaker bottom line

In its shareholder letter, Coinbase highlighted major gains in trading activity and product adoption throughout 2025. While its crypto market share doubled to 6.4%, the total trading volume reached $5.2 trillion, up 156% year-over-year. 

Revenue from subscriptions and services also reached a record $2.8 billion, indicating rising demand for non-trading products such as stablecoins, staking, and custody services. Paid Coinbase One subscribers climbed to nearly one million, tripling over the past three years.

“We drove all-time highs across our products,” said chief executive officer Brian Armstrong. “The Everything Exchange is working, and we’re well-positioned for 2026.”

Chief financial officer Alesia Haas added that the company met or exceeded its revenue and expense targets throughout the year, extending what she described as a multi-year track record of operational discipline.

However, softer market conditions in the final months of 2025 reduced trading activity and lowered asset prices, putting pressure on Coinbase’s core transaction business. According to GAAP accounting standards, these elements played a part in the quarterly net loss. 

Expanding beyond spot trading

As part of its “Everything Exchange” strategy, which aims to bring various asset classes onto a single platform, Coinbase continued to grow beyond spot trading in 2025. 

The company introduced 24/7 U.S. perpetual-style futures, expanded its global reach by acquiring Deribit, and launched new products like stock trading and prediction markets. At the same time, stablecoin and institutional services were further developed.

These efforts are meant to reduce dependence on traditional crypto trading and make revenue less sensitive to price swings. As a result, average USD Coin (USDC) balances on the platform climbed to $17.8 billion, while customer-held assets tripled over three years. In 2025, more than 12% of the world’s crypto was stored on Coinbase.

After the earnings report was released, Coinbase shares fell about 8% as the wider digital asset market weakened. Analysts pointed to ongoing volatility and uncertain trading volumes as major short-term risks.

Even so, the company ended 2025 with a solid financial position, holding $11.3 billion in cash and equivalents. It also bought back $1.7 billion worth of shares during the year. Early 2026 has shown signs of recovery, with about $420 million in transaction revenue recorded by early February.