Latest quarter
Coinbase reported Q2 FY2026 revenue of $1.2 billion, down −18.5% from $1.5 billion a year earlier. The company’s reported revenue was below the consensus of $1.3 billion, or −5.81% against the consensus. Coinbase reported diluted EPS of −$1.36, compared with $5.14 in Q2 FY2025; the available information does not provide an EPS consensus comparison.
The company’s 10-Q attributed lower transaction revenue to a decline in consumer transaction revenue, partly offset by derivatives trading growth and the launch of prediction-markets trading. Coinbase reported consumer transaction revenue of $452.0 million in Q2 2026. The filing said subscription and services revenue declined as lower average interest rates reduced stablecoin revenue, partly offset by higher average USDC balances in eligible Coinbase products.
Coinbase reported gross margin of 84.4%, compared with 83.6% a year earlier, while operating margin was −9.30%, compared with −1.65%. Free cash flow was $45.7 million, compared with −$160.3 million in Q2 FY2025.
| Q2 FY2026 | Q2 FY2025 | Change | |
|---|---|---|---|
| Revenue | $1.2 billion | $1.5 billion | −18.5% |
| Diluted EPS | −$1.36 | $5.14 | −126.5% |
| Gross margin | 84.4% | 83.6% | 0.8 percentage points |
| Operating margin | −9.30% | −1.65% | −7.7 percentage points |
| Free cash flow | $45.7 million | −$160.3 million | — |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Revenue | $1.2 billion | $1.3 billion | Missed by 5.81% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
What management said on the call
Chief Executive Officer Brian Armstrong said Coinbase’s strategy starts with safe storage of customer assets and growing assets on its platform, because customers that store assets with Coinbase also transact with it. He said the company uses incentives, including higher rates on the Coinbase One card for customers storing more assets, to encourage additional storage and product adoption.
Chief Financial Officer Alesia Haas said the company was seeing success from growth marketing around prediction markets, crypto trading and newer derivatives products. Haas said Coinbase generally sees a one-year payback on those efforts and had recently outperformed that benchmark; she added that early customer activity in prediction markets indicated incremental spot-trading volume rather than cannibalization. Haas also said Coinbase One reached an all-time high in paid subscribers during the quarter.
On stablecoins, Haas said Coinbase had met the conditions for its Circle contract to renew on the same terms. Armstrong said Coinbase intends to support the stablecoins customers want to use and seek economic arrangements with major stablecoins, while continuing to invest in USDC and the OpenUSDC consortium.
Asked about AI agents and pricing, Armstrong said agents would consider price and latency but would also value reliable, safe, liquid, compliant infrastructure with uptime. He said Coinbase was seeing most agentic-finance transactions through USDC, Base and x402, but said the company had no specific numbers or forecasts to provide.
When asked about access to pre-IPO perpetual futures in the U.S., Armstrong said U.S. access was on the roadmap, without providing a timeline. On the Clarity Act, Armstrong said Coinbase would operate largely as usual if it did not pass because SEC and CFTC leadership had publicly indicated they were poised to issue clear rules.
Guidance
Management’s guidance is not available in the provided company materials. Coinbase’s 10-Q said that, for the year ending December 31, 2026, it anticipated aggregate technology and development, general and administrative, and sales and marketing expenses, excluding amortization of intangible assets, to be slightly higher than in the year ended December 31, 2025, driven by USDC rewards.