Coinbase Reports Lower Q1 Revenue Amid Slowing Trade Volume

Coinbase Reports- Coinbase Sees Decline in Q1 Earnings and Trading Activity

Coinbase Reports– Coinbase, the leading U.S. crypto exchange, announced its first-quarter earnings on Thursday, falling short of expectations for both revenue and earnings. The company’s trading patterns cooled following the post-election surge seen in the previous quarter.

For the quarter ending March 31, reported an adjusted net income of $527 million, with earnings per share (EPS) of $0.24. This missed the consensus estimate of $1.93. Total revenue for the quarter was $2 billion, slightly under the expected $2.12 billion and down from $2.3 billion in Q4 2024. Transaction revenue also took a hit, dropping 19% to $1.2 billion as trading volume dipped 10%.

Strategic Acquisition of Deribit

In a positive move, Coinbase agreed to acquire crypto derivatives exchange Deribit in a $2.9 billion deal. This acquisition is seen as a strategic step to expand Coinbase’s global reach in the derivatives trading market and offer institutional-grade infrastructure. “Derivatives trading represents a larger share of total crypto volumes compared to spot markets, which Coinbase dominates in the U.S.,” the company noted.

In its shareholder letter, Coinbase emphasized its ongoing efforts to expand revenue and market share, stating that its USDC stablecoin saw continued growth, reaching an all-time high market cap of over $60 billion. Coinbase also highlighted its focus on building the foundation for future growth, powered by increased regulatory clarity.

Outlook for the Next Quarter

Looking forward, Coinbase expects second-quarter subscription and services revenue to be between $600 million and $680 million. The company anticipates a decline in blockchain rewards revenue due to lower asset prices, though stablecoin revenue is expected to grow.

Despite these developments, Coinbase’s stock saw a 2.5% decline in after-hours trading, dropping to $201 per share. The stock is down 19% in 2025 and 2% year-over-year.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.