Coinbase misses Q2 revenue estimates, but stablecoin growth, policy wins offer hope

Shares of Coinbase Global (COIN) took a nosedive in after-hours trading after the crypto exchange missed Wall Street's earnings and revenue estimates. Despite hitting some key milestones, the numbers didn't dazzle.

Coinbase reported $1.5 billion in Q2 revenue, falling short of the expected $1.56 billion to $1.59 billion. Net income stood at $1.4 billion, but when you strip out investment gains, adjusted net income was a mere $33 million.

Non-GAAP earnings were particularly underwhelming at $0.12 per share, a far cry from the $1.49 per share analysts had hoped for. The drop in transaction revenue, thanks to dwindling spot crypto trading volumes, was a major drag.

But it wasn't all doom and gloom. Subscription and services sales dipped only 6% to $656 million, buoyed by rising stablecoin balances, especially in USDC. Stablecoin-related revenue climbed 12% to $332 million.

Looking ahead, Coinbase is eyeing subscription and service revenue between $665 million and $745 million in Q3.

COIN shares tumbled over 8% post-earnings, as per Yahoo Finance.

Despite the crypto market's Q2 chill, Coinbase hailed July's policy wins as game-changers. Highlights include President Trump's GENIUS Act signing, paving the way for stablecoin adoption, and the House passing the CLARITY Act to define crypto market structure.

Product-wise, Coinbase expanded its stablecoin rewards and launched the Base App, drawing over 700,000 users to its beta waitlist.

Next up? The 'everything exchange,' featuring tokenized real-world assets, prediction markets, and early token sales. Debuting in the US, it'll roll out globally as approvals come in, per Coinbase VP Max Branzburg.