Coinbase misses Q2 profit, revenue estimates, shares slump 11%

Published 01/08/2025, 09:18
© Reuters

Investing.com -- Coinbase Global reported second-quarter earnings well below Wall Street expectations, as lower trading volumes weighed on results, sending its shares tumbling 11% in premarket trading Friday. 

The cryptocurrency exchange posted earnings per share of $0.12, sharply missing the average analyst estimate of $1.51.

Revenue came in at $1.5 billion, slightly below the $1.59 billion consensus forecast.

Transaction (JO:NTUJ) revenue declined 2% year-over-year to $764.3 million, while revenue from the subscription and services (S&S) segment — which covers non-trading businesses — increased 9.5% to $655.8 million.

Crypto trading activity remains slow amid regulatory scrutiny and uncertainty, which have pressured transaction volumes and sentiment in the sector.

Mizuho (NYSE:MFG) analyst Dan Dolev said it was a "mixed Q2" print, with headline revenue missing expectations. 

"That said, several positives: Q2 S&S in line despite Q/Q slower volumess, improved consumer yield, & S&M cost discipline. Plus, July transaction revenue is pacing 15% ahead of consensus," he added. 

(Additional reporting by Vahid Karaahmetovic.)

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