Coinbase 8-K
NegativeEarningsNew guidanceRestructuring
Crypto trading slowdown hit transaction revenue; record USDC balances helped subscription and services cushion the decline.
Filed 2026-05-07 16:11 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q1 2026 results with Q2 and FY2026 outlook. Revenue fell 31% Y/Y as crypto trading activity declined, while subscription and services provided a buffer at 44% of net revenue. Coinbase also forecast Q2 expenses and FY2026 Adjusted Expenses, and expects a one-time restructuring charge in Q2.
Key Figures
| Metric | Q1 2026 | Q1 2025 | Y/Y |
|---|---|---|---|
| Total revenue | $1.41B | $2.03B | -31% |
| Transaction revenue, net | $756M | $1.26B | -40% |
| Subscription and services revenue | $584M | $675M | -14% |
| Operating income (loss) | $(21.4)M | $706M | -103% |
| Net income (loss) | $(394)M | $65.6M | n/m |
| Adjusted Net Income (Loss) (non-GAAP) | $(45.6)M | $524M | n/m |
| Adjusted EBITDA (non-GAAP) | $303M | $930M | -67% |
| Diluted EPS | $(1.49) | $0.24 | n/m |
- Total revenue declined 21% Q/Q as total crypto market capitalization and trading volume each fell more than 20%; total crypto trading volume fell 28% Q/Q and spot volume fell 37%. Subscription and services revenue was 44% of net revenue.
- Transaction revenue was $215M QTD through 5/5/2026; Coinbase cautioned against extrapolating that figure. Stablecoin revenue was $305M, supported by an $80B USDC market cap and record average USDC held in Coinbase products of $19B.
- Cash and cash equivalents were $10.2B; Coinbase reported $12B in available resources, including $1.8B in crypto and marketable investments. It returned more than $1.9B to shareholders and repurchased 9.3M Class A shares; ending shares outstanding fell 2% Q/Q. Remaining repurchase authorization was $2.1B.
- A 14% headcount reduction leaves ≈4,300 continuing employees vs 4,988 at Q1-end; Coinbase expects ≈$500M in cost reductions vs the 2025 annualized exit rate. A one-time restructuring expense of $50M-$60M is expected in Q2.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Subscription and services revenue | Q2 2026 | $565M-$645M | — | — |
| Transaction expenses | Q2 2026 | Low-to-mid teens as a % of net revenue | — | — |
| Technology and development + general and administrative expenses | Q2 2026 | $820M-$870M | — | — |
| Sales and marketing expenses | Q2 2026 | $200M-$300M | — | — |
| Stock-based compensation | Q2 2026 | ≈$240M | — | — |
| Adjusted Expenses (non-GAAP) | FY2026 | $4.25B-$4.6B; +3% Y/Y at midpoint; flat Y/Y excluding USDC Rewards growth | — | — |
Investor Takeaways
- Compare Q2 subscription and services revenue and expenses with the guided ranges; QTD transaction revenue is not a full-quarter forecast.
- Watch USDC adoption and crypto market activity, which the company identified as drivers of revenue, alongside the planned expense reductions and headcount changes.
The summary is written by an AI model reading the filing.
Model 005 · prompt 01d34d48e3