Coinbase Q1 Revenue Falls by 10%

Coinbase reported a 10% quarter-over-quarter revenue decline to $2 billion in Q1, falling short of industry estimates by 4.1% as market trading activity slowed.

Net income dropped 95% from $1.29 billion in Q4 to $66 million, primarily due to a $596 million paper loss on its crypto holdings. Despite this, earnings per share of $1.94 exceeded the Zacks Consensus Estimate of $1.85.

On May 8, Coinbase revealed that transaction revenue decreased 18.9% to $1.26 billion, while trading volumes fell 10.5% to $393 billion, partly due to a double-digit drop in crypto market cap linked to tariffs from the Trump administration.

Conversely, President Donald Trump’s election win in November was seen as a key factor in the rising market prices during Q4.