Coinbase reported a $667 million web loss for the fourth quarter of 2025, its first quarter within the crimson since 2023.
The loss, which was largely pushed by non-cash write-downs on the corporate’s crypto holdings and strategic investments, landed far beneath analyst expectations and reversed a $1.3 billion revenue from the identical interval final 12 months.
Document Development Metrics Masked by Portfolio Ache
Coinbase’s shareholder letter, printed after market shut, painted two divergent footage of its 2025 efficiency. On the operational facet, the corporate logged all-time highs in whole buying and selling quantity ($5.2 trillion, up 156% year-over-year), crypto buying and selling market share (6.4%, double the 12 months earlier than), and subscription income.
Within the letter, the crypto agency acknowledged that paid Coinbase One subscribers have almost hit 1 million and that it now has 12 merchandise producing over $100 million in annualized income.
Nevertheless, fourth-quarter financials instructed a distinct story, with whole income falling 21.6% year-over-year to $1.78 billion and lacking consensus estimates of about $1.83 billion. Moreover, transaction income, the corporate’s core payment enterprise, dropped 36% from This autumn 2024 to $983 million. Adjusted earnings per share of $0.66 additionally got here in beneath analyst forecasts, which ranged from $0.86 to $0.96, in accordance with market commentator MartyParty.
Per Coinbase’s report, the first wrongdoer behind the GAAP loss was a $718 million unrealized markdown on the trade’s crypto funding portfolio, as Bitcoin (BTC) and different tokens declined in This autumn.
The corporate additionally recorded a $395 million loss on strategic investments, together with its stake in Circle, the issuer of USDC, which dropped roughly 40% quarter-over-quarter. In the end, Coinbase ended the 12 months with $11.3 billion in money and money equivalents.
Market Share Features Face New Aggressive Strain
Current information suggests Coinbase is dealing with rising competitors, with analytics agency Artemis reporting that decentralized derivatives platform Hyperliquid processed $2.6 trillion in buying and selling quantity, almost double Coinbase’s $1.4 trillion in the identical interval. Artemis additionally reported a pointy divergence in market efficiency this 12 months, with Hyperliquid’s token up 31.7% whereas Coinbase shares have been down 27% over the identical stretch.
The corporate’s combined quarter follows a busy 2025, the place it joined the S&P 500, secured approval to function throughout the European Union beneath MiCA guidelines, and accomplished main acquisitions, together with Deribit. It additionally benefited from a authorized win when the U.S. Securities and Change Fee (SEC) dropped a lawsuit towards the agency.
Not all commentary has been optimistic, although, as proven by safety researcher Taylor Monahan’s argument that person safety on Coinbase continues to be lagging, citing greater than $350 million in preventable losses throughout 2025.
Nonetheless, the trade has maintained that its technique focuses on diversification past spot buying and selling. It stated it’s constructing an “All the things Change” that features derivatives, equities, and prediction markets, and it lately partnered with Kalshi to assist event-based contracts. Whether or not that broader mannequin offsets swings in crypto costs will change into clearer within the coming quarters.
The publish Coinbase Swings to $667M This autumn Loss as Crypto Portfolio Markdowns Chunk appeared first on CryptoPotato.