Coinbase 8-K
NegativeEarningsNew guidance
Crypto and strategic investment losses drove Q4 into a GAAP loss, while growing USDC balances lifted stablecoin revenue.
Filed 2026-02-12 16:06 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q4 and FY2025 results with Q1 2026 guidance. FY revenue grew 9% Y/Y, while Q4 total revenue fell 22% Y/Y amid softer market conditions. Q4’s $667M GAAP net loss reflected losses on crypto investments and strategic investments; Coinbase reported $178M in adjusted net income. The company entered 2026 with $11.3B in cash and cash equivalents.
Key Figures
| Metric | Q4 2025 | Q4 2024 | Y/Y |
|---|---|---|---|
| Total revenue | $1.78B | $2.27B | -22% |
| Operating income | $274M | $1.03B | -74% |
| Net income (loss), GAAP | $(667)M | $1.29B | n/m |
| Adjusted net income, non-GAAP | $178M | $931M | -81% |
| Diluted EPS, GAAP | $(2.49) | $4.68 | n/m |
| Adjusted diluted EPS, non-GAAP | $0.66 | $3.37 | -80% |
| Adjusted EBITDA, non-GAAP | $566M | $1.29B | -56% |
| Metric | FY2025 | FY2024 | Y/Y |
|---|---|---|---|
| Total revenue | $7.18B | $6.56B | +9% |
| Operating income | $1.44B | $2.31B | -38% |
| Net income, GAAP | $1.26B | $2.58B | -51% |
| Adjusted net income, non-GAAP | $1.16B | $2.07B | -44% |
| Diluted EPS, GAAP | $4.45 | $9.48 | -53% |
| Adjusted diluted EPS, non-GAAP | $4.03 | $7.58 | -47% |
| Adjusted EBITDA, non-GAAP | $2.81B | $3.35B | -16% |
- Q4 transaction revenue was $983M, down 6% Q/Q; subscription and services revenue was $727M, down 3% Q/Q. Lower average crypto prices weighed on subscription and services revenue; stablecoin revenue rose 3% Q/Q to $364M as average USDC held in Coinbase products reached $17.8B, up 18% Q/Q.
- The Q4 net loss included a $718M loss on crypto assets held for investment, largely unrealized, and a $395M loss on strategic investments. Q4 operating expenses were $1.51B, up 9% Q/Q, driven in part by acquisition-related costs, marketing, and USDC rewards.
- Cash and cash equivalents were $11.3B at year-end. Coinbase repurchased 3.3M Class A shares for $850M in Q4 and another 4.9M for $895M through 2/10/2026; fully diluted weighted-average shares fell 8% Q/Q to 268M. In January, the board added $2.0B to the share and long-term debt repurchase authorization; $2.3B remained available as of 2/10/2026.
- Q1 transaction revenue was ≈$420M through 2/10/2026; the company cautioned against extrapolating that amount.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Subscription and services revenue | Q1 2026 | $550M-$630M | — | — |
| Transaction expenses | Q1 2026 | Low-to-mid teens as a percentage of net revenue; dependent on revenue mix | — | — |
| Technology and development + general and administrative expenses | Q1 2026 | $925M-$975M | — | — |
| Sales and marketing expenses | Q1 2026 | $215M-$315M | — | — |
| Stock-based compensation | Q1 2026 | ≈$250M; included in expense ranges above | — | — |
Investor Takeaways
- Q1 results versus the subscription and services and expense ranges will show how lower rates and crypto prices, revenue mix, and USDC-related rewards affect performance.
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