Coinbase Global (COIN) Stock Slides 8% After-Hours Despite Record $1.5B Net Income and Stablecoin Surge
TLDR
Coinbase Shares Dip Despite Record Profit as Trading Revenue Falls Short
Q2 Beat on EPS, But Coinbase Slides 8.66% After Trading Misses Forecasts
Coinbase Gains on Stablecoins, Slips on Transactions in Mixed Q2 Report
Strong Profit, Weak Volumes: Coinbase Stumbles Despite Circle Gains
EPS Tops Estimates, But Coinbase Drops on Subpar Trading
Coinbase Global Inc. shares dropped 8.66% after-hours on Wednesday, closing at $345.06 following a steady $377.76 session close.
The sharp slide followed second-quarter results that showed record net income but slightly missed revenue expectations. Strong subscription growth and stablecoin revenue gains failed to outweigh weaker transaction volumes and missed analyst targets.
Transaction Revenue Misses Expectations Despite Quarterly Profit Milestone
Coinbase reported $1.5 billion in total revenue for Q2, rising from $1.45 billion in the same quarter last year. Net income surged to $1.43 billion, a dramatic increase from $36.13 million the previous year. The trading-related revenue landed at $764 million, below StreetAccount’s $787 million estimate.
Coinbase, $COIN, Q2-25. Results:
📊 Adj. EPS: $0.12 🔴
💰 Revenue: $1.50B 🔴
📈 Net Income: $1.43B
🔎 Strategic investments and crypto gains fueled strong net income, while core adjusted earnings reflect softer transaction volumes and increased operating costs. pic.twitter.com/uwIxOjSnol
— EarningsTime (@Earnings_Time) July 31, 2025
The income boost included a $1.5 billion unrealized gain related to Coinbase’s Circle stake and $362 million from its crypto portfolio. On an adjusted basis, earnings per share stood at $1.96, beating estimates of $1.26 compiled by LSEG. Nevertheless, weaker transactional activity signaled waning short-term momentum.
Retail trading volumes rose 16% year-over-year to $43 billion but still fell short of the projected $48.05 billion. Institutional trading did not fill the gap as speculative retail behavior slowed during the quarter. Analysts had anticipated a weaker Q2 amid reduced enthusiasm following Q1’s regulatory optimism.
Subscriptions and Stablecoins Gain but Fall Short of Forecasts
Coinbase’s subscriptions and services reached $655.8 million, a 9% year-over-year increase. Revenue from stablecoins hit $332.5 million, up 38% from a year earlier and 12% over Q1. The stablecoin figure aligned closely with estimates, showing solid but not breakout performance.
The company benefited from rising demand after Circle’s successful June IPO and broader stablecoin adoption. Coinbase holds a favorable revenue-sharing deal with Circle, collecting full earnings on USDC held on its platform. It also receives about half the revenue from USDC activity on external platforms.
Despite lower-than-expected totals, stablecoins remain a critical growth driver as crypto-linked financial products continue to gain ground. Coinbase confirmed USDC is now available on Shopify via Base, helping boost transaction relevance. Circle’s momentum remains a key contributor to Coinbase’s broader ecosystem performance.
Platform Expansion and New Services Signal Long-Term Strategic Shift
Coinbase is advancing beyond core crypto trading by expanding into real-world assets, derivatives, and token sales within its platform. The upcoming features will roll out first to U.S. users, targeting increased engagement and retention. These efforts align with broader plans to tap into emerging blockchain sectors.
It’s Coinbase earnings day.
Some recent highlights:
– $1.5B total revenue, $1.4B net income in Q2
– US perps launched, closing a key gap in market access
– Announced acquisition of Deribit, which will unlock global options
– Stablecoin revenue up 12% Q/Q
– 80%+ of U.S. BTC and… pic.twitter.com/Xhm3y1HFrw
— Brian Armstrong (@brian_armstrong) July 31, 2025
The company also highlighted new partnerships and platform milestones, including U.S. perpetual futures and the acquisition of Deribit. That move aims to increase global access to options markets, supporting Coinbase’s evolving product mix. The firm also launched its Base App in open beta with over 700,000 waitlisted users.
Coinbase maintains over 80% of custody for U.S. BTC and ETH ETF assets, reflecting its deep institutional reach. Recent collaborations include PNC Bank’s crypto integration and J.P. Morgan’s deposit token pilot on Base. The company’s year-to-date stock gain exceeds 50%, outperforming the S&P 500, which it joined in May.
The post Coinbase Global (COIN) Stock Slides 8% After-Hours Despite Record $1.5B Net Income and Stablecoin Surge appeared first on CoinCentral.
Filed under: News - @ July 31, 2025 11:28 pm