Coinbase Stock Rises After Q4 Earnings Miss Amid Slowing Crypto Trading Activity

Coinbase (NASDAQ: COIN) reported weaker-than-expected fourth-quarter earnings on Thursday, reflecting softer crypto trading activity and lower digital asset prices. Despite missing Wall Street forecasts, Coinbase stock edged slightly higher in after-hours trading, even as shares remain down roughly 40% year to date.

The leading U.S.-based cryptocurrency exchange posted total revenue of $1.78 billion for the quarter, falling short of analyst estimates of $1.83 billion. Adjusted earnings per share (EPS) came in at $0.66, significantly below the consensus projection of $0.86, signaling ongoing pressure on profitability amid a challenging crypto market environment.

Transaction revenue, a key metric closely watched by investors, totaled $983 million. That figure missed expectations of $1.02 billion and declined from $1.046 billion in the third quarter. On a year-over-year basis, transaction revenue dropped sharply from $1.556 billion in the same period last year, highlighting the impact of reduced trading volumes and weaker crypto asset prices.

Subscription and services revenue reached $727.4 million, down from $746.7 million in the previous quarter but up from $641.1 million a year ago. This segment remains a strategic focus for Coinbase as it seeks to diversify revenue streams beyond trading fees.

Looking ahead, Coinbase reported approximately $420 million in transaction revenue through Feb. 10 for the first quarter. The company also projected first-quarter subscription and services revenue between $550 million and $630 million.

In its shareholder letter, Coinbase expressed optimism about the long-term outlook for the cryptocurrency industry. The company noted that while crypto markets are cyclical and asset prices can be volatile, ongoing technological innovation and increasing adoption of crypto products continue to drive long-term growth.

Although Coinbase shares fell 7.9% during the regular trading session following the earnings release, the modest after-hours rebound suggests investors remain cautiously optimistic about the company’s future in the evolving digital asset market.