Coinbase released its Q4 2025 report showing a loss of $667 million, driven by weaker trading activity. Transaction-related revenues fell sharply, reflecting a broader slowdown in the crypto market that depressed asset volumes and prices.
Coinbase’s latest quarterly report ended an eight-quarter streak of profitability, marking a shift in its recent performance. The company reported a net loss of $667 million under GAAP standards in the fourth quarter of 2025, as quarterly revenue fell to approximately $1.78 billion.
According to management, the decline was primarily linked to weaker market conditions, even though the year as a whole showed signs of expansion and a strong liquidity position.
Specifically, fourth-quarter transaction revenue fell to $983 million, representing a year-over-year decrease of nearly 37%. Total revenue for the period also declined between 20% and 21.6% compared to the same quarter of the previous year. However, the most significant factor in the final result was a $718 million non-cash impairment charge on crypto investments, the largest single charge of the quarter and the primary contributor to the accounting loss.
Coinbase’s annual performance and diversification strategy
Coinbase reported a trading volume of $5.2 billion for the year, representing 156% growth, along with annual revenue of $7.2 billion, an approximately 9% year-over-year increase. Meanwhile, revenue from subscriptions and services grew by more than 13%, while the premium subscriber base reached approximately one million users.
In this context, management presented these achievements as evidence of a deliberate strategy to diversify revenue streams and reduce reliance on spot trading. The expansion of the product portfolio and the boost to recurring revenue aim to mitigate the impact of bear markets and the inherent volatility of the crypto market.
The stock initially declined after the results were released, reaching multi-quarter lows before showing some rebounds. Analysts also offered mixed opinions: while some pointed to persistent headwinds in the sector, others highlighted operational resilience and a strong cash position as mitigating factors in the face of the adverse environment.
In fact, Coinbase ended the year with approximately $11.3 billion in cash reserves, reinforcing its ability to weather periods of volatility. Furthermore, the company continues its share buybacks as part of its capital management strategy and anticipates that new product launches—including prediction markets—could support trading activity in the medium term.
