Coinbase Sees $400M Q1 Loss, Shares Drop

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Coinbase reported a major and consecutive Q1 loss, with revenue plummeting amid market volatility, pushing the crypto exchange’s shares down along the way.

On Thursday, the exchange giant reported its January-March earnings. Among the key numbers, the net loss stood at $394.1 million in Q1. Notably, this is the second consecutive red quarter. In Q4 2025, Coinbase reported a net loss of $667 million.

The market shift certainly played a role. The prices dropped, and as investors (including institutions) counted losses, they turned to other investing opportunities.

“Total crypto market cap and total crypto trading volume were both down more than 20% quarter-over-quarter,” chief financial officer Alesia Haas said on an earnings call, adding that “macro conditions were genuinely tough.”

And that wasn’t all. Wall Street analysts expected $1.5 billion in Q1 revenue, but the company reported $1.41 billion instead. Transaction revenue plunged $755.9 million, 40% compared to Q1 last year.

Coinbase CEO Brian Armstrong added that “we executed well on what was in our control in Q1.” Both Haas and Armstrong pointed out other successes, such as growth in trading volume, 10x YoY growth in stablecoin transactions on Base, an all-time high in Coinbase-held USDC, and 13 consecutive quarters of positive adjusted EBITDA.

Shares follow the reported drops

As it further reported a loss of $1.49 per share, Coinbase saw a fall in the stock price in both the regular and after-hours trading on Thursday. On Friday (15:40 UTC), we found it 1.64% down to $189, slightly moving up to $192 with a 0.5% fall.

Over the past 5 days, the shares decreased by 3.8%, while they’re up 9.8% over 30 days.

Notably, all this comes amid significant layoffs as well. Coinbase reported a 14% cut of its workforce on Monday, which is some 700 jobs.

“Coinbase is well-capitalized, has diversified revenue streams, and is well-positioned to weather any storm,” Armstrong said in an email to the employees. But also, the “business is still volatile from quarter to quarter.”

Therefore, the company decided to reduce headcount and cut costs, but also “fundamentally chang[e] how we operate” as AI changes the business environment. The exchange will work to place AI at its “core.”