Coinbase posted $1.5 billion in revenue for the second quarter of 2025, up 3.3% from the same period last year but down 26% from the previous quarter, as weaker retail trading activity dragged on overall performance.
The company’s earnings per share came in at just $0.12, significantly below Wall Street’s expectations of $1.19, as outlined in its July 31 shareholder letter.
While institutional trading volumes beat forecasts, retail trading volumes fell short. Coinbase recorded $43 billion in retail trades, missing the $48.05 billion estimate. Total trading volume stood at $237 billion. Retail activity — typically a high-margin revenue driver — slowed in Q2, following a strong first quarter where investor sentiment had been more bullish on crypto markets.
Revenue from subscriptions and services rose 9% year-over-year to $655.8 million, buoyed by income from stablecoins. Stablecoin revenue alone hit $332 million, marking a 12% increase from the previous quarter. The growth was primarily fueled by Coinbase’s revenue-sharing agreement with USDC issuer Circle, allowing the company to retain full earnings on USDC held on its platform and around half of revenue from USDC transactions elsewhere.
Still, the total subscription and services revenue came in below analyst expectations of $705.9 million. A deeper look revealed that blockchain-related income within this segment declined 22% to $144.5 million year-on-year, though other subscription sources surged nearly 72%.
Despite a strong showing in institutional trading — which reached $194 billion, above projections — Coinbase’s bottom line was hit by a broader investor shift away from crypto in the face of ongoing U.S. policy debates and global tariff concerns.
Additionally, Coinbase is aiming to revamp its consumer-facing product lineup. The firm announced plans to roll out tokenized real-world assets, crypto derivatives, prediction markets, and access to early-stage token launches within its mobile app — initially available to users in the United States. Notably,the firm has expanded its derivatives offerings by launching perpetual futures trading in the United States.
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