Coinbase Q1 loss $394M as Armstrong shifts to derivatives

Coinbase reported a $394.1 million net loss for the first quarter of 2026, driven by steep markdowns on digital assets after a sharp decline in cryptocurrency prices. The company recorded a $482 million loss on crypto held for investment purposes, the earnings filing shows.

Total revenue for the quarter fell 31% year over year to $1.41 billion. Transaction revenue dropped 40% to $756 million. Subscription and services revenue declined 14% to $584 million. Adjusted EBITDA was $303 million, down from $930 million in the first quarter of 2025.

Bitcoin traded above $97,000 in January before sliding to about $63,000 in early February and finishing the period under $70,000. The price swings reduced trading volumes and lowered the value of assets on Coinbase’s balance sheet. Shares traded down about 6% in after-hours trading to $182 per share following the report.

In a video posted to X, CEO Brian Armstrong addressed the market downturn and outlined a change in product strategy. He said, “Despite the crypto market being down, the fundamental growth of the onchain economy is strong.” He described plans to expand Coinbase’s offerings beyond spot crypto trading to include derivatives, commodities, futures trading and prediction market event contracts, and to scale services for institutional clients. Armstrong also highlighted work on AI payment capabilities and on regulated stablecoins.

Stablecoin-related revenue rose 11% from the prior year to $305 million. Coinbase reported an 8.6% share of global crypto trading for the period and emphasized progress in diversifying revenue away from retail transaction fees.

This quarter marks Coinbase’s second consecutive quarterly loss. The company posted a $667 million loss in the previous quarter and had reported $66 million in net income in the first quarter of 2025. Coinbase went public in 2021 and has been pursuing higher-margin institutional business and non-spot products as part of its effort to broaden revenue sources.