Coinbase Q2 revenue hits $1.5B but falls 26% from Q1

Coinbase reported $1.5 billion in revenue for Q2 2025, a 3.3% increase from a year earlier but a 26% drop from the previous quarter, as lower retail activity weighed on results. 

The company’s earnings per share came in at $0.12, far below analyst estimates of $1.19, according to its July 31 shareholder letter.

Despite a slight year-over-year revenue increase, the company fell short of analyst expectations across several key categories. Retail trading volume reached $43 billion, missing forecasts of $48.05 billion, while total trading volume stood at $237 billion.

Stablecoin revenue supports growth

Coinbase’s subscriptions and services revenue grew 9% year-over-year to $655.8 million, supported by stablecoin income. Stablecoin revenue alone rose 12% from Q1 to $332 million, boosted by its revenue-sharing deal with Circle, the issuer of USD Coin (USDC). Coinbase keeps 100% of revenue on USDC held on its platform and about 50% from USDC activity elsewhere.

Still, overall subscription and services revenue came in below analyst expectations of $705.9 million. Blockchain revenue within this segment dropped 22% from a year ago to $144.5 million, while other subscription income rose nearly 72%.

Retail activity slows ahead of new product push

While institutional trading volume of $194 billion beat estimates, retail trading, typically more profitable, lagged. The slowdown followed Q1’s stronger performance, as investor attention shifted from crypto to tariffs and policy headlines in Washington.

Coinbase shares fell 6% in extended trading following the results. However, year-to-date, the stock is still up over 50%, outperforming the S&P 500, which it joined in May.

Looking ahead, Coinbase plans to broaden its consumer offerings. The company announced it will soon launch tokenized real-world assets, derivatives, prediction markets, and early-stage token sales on its app, starting with U.S. users.