Coinbase Q4 Earnings & Revenues Miss Estimates on Higher Expenses

Coinbase Global, Inc. COIN reported fourth-quarter 2025 net operating earnings per share of 66 cents, which missed the Zacks Consensus Estimate by 28.2%. The bottom line declined 80.4% year over year. COIN reported a net loss of $2.49 per share.

The quarterly results reflected lower consumer transaction revenues and other transaction revenues, higher operating expenses, and reduced adjusted EBITDA. Higher stablecoin revenues are the offset.

Operational Update        

Total revenues of $1.7 billion missed the Zacks Consensus Estimate by 0.6%. The top line declined 21.5% year over year due to lower Transaction revenues and other revenues.

Total transaction revenues declined 36.8% year over year to $982.7 million in the quarter. The decline was due to a decrease in consumer transaction revenues and other transaction revenues. The Zacks Consensus Estimate was pegged at $1 billion.

Total subscription and services revenues increased 13.4% year over year to $727.4 million in the reported quarter. The growth was driven by higher stablecoin revenues and other subscription and services revenues. The Zacks Consensus Estimate was pegged at $735 million.

Total other revenues decreased 4.7% to $71 million in the quarter. The Zacks Consensus Estimate was pegged at $74 million.
Adjusted EBITDA was $566 million in the reported quarter, which declined 56% year over.

Total operating expenses increased 21.8% to $1.5 billion in the quarter due to higher transaction expenses, technology and development, sales and marketing, and general and administrative expenses.

Financial Update

Coinbase exited the fourth quarter with cash and cash equivalents of $11.3 billion as of Dec. 31, 2025, up 21.2% from 2024-end.

As of Dec. 31, 2025, long-term debt increased 40.2% from 2024-end to $5.9 billion.

Shareholders' equity was $14.8 billion at the fourth-quarter 2025-end, up 44% from 2024-end.

Net cash provided by operating activities was $2.4 billion in 2025, which declined 21.8% year over year.

Q1 2026 Outlook

Coinbase expects subscription and services revenues to be within $550-$630 million. This range reflects lower Average USDC Market Capitalization and interest rates, as well as lower average crypto prices and staking protocol rates.

Coinbase expects technology & development and general & administrative expenses to be between $925 million and $975 million, roughly flat quarter over quarter. Coinbase expects headcount to grow at a slightly higher rate than in the fourth quarter of 2025.

Sales and marketing are expected to be in the range of $215-$315 million.

Coinbase expects transaction expenses to be in the Low-to-Mid teens as a percentage of net revenues.

Full-Year Highlights

Full-year 2025 operating income of $4.45 per share decreased 53% year over year. The metric missed the Zacks Consensus Estimate by 10.2%.

Total operating revenues doubled year over year in 2025 to $7.1 billion but missed the Zacks Consensus Estimate by 0.8%.
In 2025, Total Trading Volume grew 156% to $5.2 trillion.

Zacks Rank

Coinbase currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Financial - Miscellaneous Services Providers

Blackstone Inc.’s BX fourth-quarter 2025 distributable earnings of $1.75 per share handily surpassed the Zacks Consensus Estimate of $1.52. The figure rose 4% from the prior-year quarter. Net income attributable to Blackstone was $1.02 billion, soaring 44% from the year-ago quarter.

For 2025, distributable earnings per share of $5.57 beat the consensus estimate of $5.34 and grew 20% year over year. Net income attributable to Blackstone was $3.02 billion, up 9%. Total segment revenues for the reported quarter were $3.94 billion, down 4% year over year. The top line beat the Zacks Consensus Estimate of $3.61 billion. On a GAAP basis, revenues were $4.36 billion, which jumped 41%. For 2025, total segment revenues of $13.08 billion increased 12%. The top line surpassed the consensus estimate of $12.54 billion.

Bread Financial Holdings, Inc. BFH reported fourth-quarter operating income of $2.07 per share, significantly outperforming the Zacks Consensus Estimate by 417.5%. The bottom line surged 406% year over year. Revenues increased 5.3% from the prior-year level to $975 million, exceeding the consensus estimate by 3.62%. 

Credit sales of $8.1 billion increased 2% year over year, driven by new partner growth and increased general-purpose spending. Average loan decreased 1% to $18 billion, while end-of-period loan declined 0.5% to $18.8 billion.

Virtu Financial, Inc. VIRT reported fourth-quarter adjusted earnings per share of $1.85, which beat the Zacks Consensus Estimate by 44.8%. The bottom line increased 62.3% year over year. Adjusted Net Trading Income rose 34% year over year to $613.4 million, exceeding the consensus estimate by 18.2%. 

Revenues from commissions, net, and technology services rose 12.1% year over year to $157.4 million. The metric marginally missed the Zacks Consensus Estimate and our model estimate of $157.7 million. Interest and dividend income of $143.9 million increased 16.3% year over year and beat our estimate of $128.2 million.

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