Shares of Coinbase Global Inc. ( COIN ) are trading lower Friday following the release of disappointing second-quarter results that missed expectations across key financial metrics.

What To Know: The crypto trading platform reported adjusted earnings per share of just 12 cents, well below the Street estimate of $1.35, and revenue of $1.5 billion, missing the consensus estimate of $1.69 billion.

Quarter-over-quarter, revenue declined by 26%, while transaction revenue dropped 39% to $764 million. Subscription and services revenue held somewhat steadier at $656 million but still fell 6% sequentially. The sharpest hit came from trading volume, which plunged 40% to $237 billion, which Coinbase attributed to lower spot crypto volumes.

Both consumer and institutional segments reported year-over-year declines in transaction revenue. Despite the weakness in core trading activity, the company noted record highs in derivatives trading volume and emphasized the continued adoption of USDC and the scaling of its Base Chain. Coinbase also launched its Base App in open beta with over 700,000 users on the waitlist.

Looking ahead, the company offered some cautious optimism. Coinbase expects July transaction revenue to come in at $360 million and guided for third-quarter subscription and services revenue in the range of $665 million to $745 million, which would exceed second-quarter levels. The company cited improving crypto prices and stablecoin-related revenue as drivers. However, it also warned of higher expenses in the third quarter due to planned headcount growth, particularly in international expansion and strategic development areas.

While Coinbase highlighted progress on the regulatory front, including the signing of legislation like the GENIUS Act, investors focused squarely on the top-line miss, margin pressure, and the sharp drop in platform activity. The sell-off reflects renewed concerns about Coinbase’s core business performance amid continued crypto market volatility.

COIN Price Action: Coinbase shares were down 16.1% at $317.21 at the time of writing, according to Benzinga pro.

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