Coinbase stock drops 4% after surprise 1Q miss as crypto trading slows

Markets Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email Coinbase stock drops 4% after surprise 1Q miss as crypto trading slows The crypto platform missed earnings and revenue estimates as falling digital asset prices weighed on trading activity and investor sentiment. By Helene Braun May 7, 2026, 8:51 p.m. 2 min read Make preferred on What to know : Coinbase shares fell about 4% in after-hours trading after the company posted a surprise first-quarter loss and missed Wall Street revenue estimates. Weaker crypto markets dragged down Coinbase’s core trading business, with both transaction and subscription-and-services revenue coming in below analyst expectations. Even as it cuts roughly 14% of its workforce, Coinbase is leaning on growth in derivatives, prediction markets and stablecoin activity to reduce its reliance on volatile trading fees. Coinbase (COIN) shares fell about 4% in after-hours trading Thursday after the crypto platform reported weaker-than-expected first-quarter results as falling crypto prices weighed on trading activity, one of the company’s main sources of revenue. The company posted a loss of $1.49 per share, compared with analyst expectations for a 27-cent profit. Revenue came in at $1.41 billion, below estimates of $1.52 billion. Transaction revenue totaled $755.8 million, missing analyst expectations of $805.2 million. Subscription and services revenue, a segment investors closely watch as Coinbase tries to reduce its reliance on trading fees, totaled $583.5 million, below expectations of $619.3 million. Crypto markets weakened sharply as bitcoin BTC $ 79,996.89 and other digital assets fell. Lower prices and reduced volatility typically lead to weaker spot trading volumes across exchanges. Investors had expected a slowdown after the crypto selloff early in the quarter, even though bitcoin rebounded roughly 12% in March. Coinbase has spent the past several years expanding beyond its core trading business into stablecoins, staking, derivatives and blockchain infrastructure. The company said Wednesday that its global crypto trading volume market share rose to 8.6%, a record high, driven partly by growth in derivatives trading. Trailing 12-month derivatives trading volume increased 169% year over year, while retail derivatives revenue surpassed an annualized run rate of $200 million for the first time, Coinbase said. The company also pointed to growth in prediction markets and stablecoin activity. Coinbase said its prediction markets business surpassed $100 million in annualized revenue within its first two full months following its U.S. launch. Meanwhile, Coinbase said its Base blockchain processed 62% of global onchain stablecoin transaction volume during the quarter. Earlier this week, Coinbase said it would cut about 700 jobs, or roughly 14% of its workforce, as part of an AI-driven restructuring effort. The company also cited the broader crypto downturn as a factor behind the layoffs. Investors are increasingly focused on whether Coinbase’s subscription and infrastructure businesses can offset the cyclical swings of crypto trading revenue during weaker markets. Coinbase More For You Bitcoin ending May above $76,000 would confirm new bull market, Tom Lee says By Krisztian Sandor | Edited by Oliver Knight 4 hours ago Tokenization and AI agentic finance are the main narratives driving the next bull cycle in crypto, Lee said at Consensus 2026. What to know : Fundstrat's Tom Lee said the crypto winter is over if bitcoin posts a third consecutive monthly gain in May, closing above $76,000. Stablecoins and tokenized assets are becoming the core infrastructure for AI-driven finance, Lee said. Crypto-native financial firms could overtake legacy banks within the next decade, he said. Read full story Latest Crypto News CZ floats Binance.US revival to give U.S. users access to global crypto liquidity 2 hours ago Tether executive warns the 2026 midterms could have 'seismic impact' on crypto industry 2 hours ago Bitmine to slow down ether purchases as it nears accumulation goal, Tom Lee says 2 hours ago 'DeFi is not dead,' it’s going mainstream with AI agents, crypto executives agree 2 hours ago Donald Trump Jr. denies rumors World Liberty Financial is falling apart 2 hours ago Amazon’s new AI wallet: AWS, Coinbase, and Stripe build payment rails for bots 4 hours ago Top Stories Aave to overhaul collateral and listing standards after KelpDAO exploit 6 hours ago Consensus Miami Day 3: Real-time coverage and highlights from on the ground 7 hours ago Bitcoin treasury firms outline $3 trillion opportunity in BTC-backed digital credit at Consensus 8 hours ago Bitcoin tests Bollinger Bands breakout as creator flips bullish on BTC 6 hours ago Safety first: Why Adam Back says Bitcoin is winning the 'DeFi security war' 10 hours ago Dogecoin slides 4%, bitcoin rally pauses as Iran ceasefire optimism lifts equities 16 hours ago In this article BTC BTC $ 79,996.89 ◢ 1.76 %