• Coinbase reported a $394.1 million net loss in Q1 amid slowing crypto trading activity.
• The company's transaction revenue declined sharply, though its stablecoin and derivatives businesses recorded strong growth.
• COIN is down 4% in after-hours trading following the earnings report.

Coinbase saw a net loss of $394 million in the first quarter of the year as lower crypto prices and softer trading activity pressured its global business, according to its Q1 report on Thursday.

Coinbase earnings report reveals decline in revenue despite stablecoin growth

The crypto exchange posted a net loss of $394.1 million, or $1.49 per share, for the quarter ended March 31. Total revenue declined to $1.4 billion, down 21% from the previous quarter.

From that figure, transaction revenue came in at $756 million, down 23% from the previous quarter. The decline in revenue came as weaker market conditions reduced investor activity across digital asset markets.

Coinbase showed continued progress in diversifying beyond its historically trading-dependent business model. Subscription and services revenue climbed to $584 million, accounting for 44% of total net revenue and helping offset volatility in transaction income. The company also strengthened its market position during the quarter, achieving an all-time high share of global crypto trading volume.

Coinbase reported trailing-12-month trading volume of $5.2 trillion, while derivatives trading surged 169% year over year, reflecting growing demand for advanced trading products.

Stablecoin-related activity remained one of Coinbase's strongest growth drivers. Revenue tied to USDC reached $305 million, supported by a $19 billion record average holdings of the stablecoin on Coinbase products. The overall USDC market cap also climbed to an all-time high of approximately $80 billion.

Coinbase announced that it now has 12 products generating more than $100 million in revenue. Retail derivatives products also contributed more than $200 million in annualized revenue during the quarter.

Assets on the platform totaled $294 billion, which the company said represented the largest pool of crypto assets held in custody globally. The company also recorded its 12th consecutive quarter of net native unit inflows, signaling continued institutional and retail engagement despite market volatility.

It also highlighted ongoing expansion within its Base blockchain network and growing adoption of tokenized asset products as part of its long-term strategy.

The earnings report comes as Coinbase announced plans to cut approximately 700 jobs, representing about 14% of its workforce, while shifting toward a more AI-focused operating structure.

COIN fell over 4% in after-hours trading following the Q1 earnings release.