Coinbase posted a $667 million loss in the fourth quarter of 2025 after crypto markdowns hit its holdings, even as it registered record trading growth.
Coinbase reported a net loss of $667 million for the fourth quarter of 2025, its first quarter in the red since 2023.
The loss, which was largely driven by non-cash writedowns on the company’s crypto holdings and strategic investments, fell well short of analysts’ expectations and wiped out a $1.3 billion profit from the same period last year.
Record growth rates masked by portfolio pain
Coinbase’s shareholder letter, published after market close, painted two divergent shots at its performance in 2025. On the operational side, the company recorded record highs in total trading volume ($5.2 trillion, up 156% year-on-year), crypto trading market share (6.4%, double the year before), and subscription revenue.
In the letter, the crypto company stated that the number of paying Coinbase One subscribers has reached nearly 1 million and that it now has 12 products generating more than $100 million in annualized revenue.
However, the fourth-quarter numbers told a different story: Total revenue fell 21.6% year over year to $1.78 billion, missing consensus estimates of about $1.83 billion. Additionally, transaction revenue, the company’s core business, fell 36% from the fourth quarter of 2024 to $983 million. Adjusted earnings per share of $0.66 also came in below analyst expectations predictionswhich, according to market commentator MartyParty, ranged from $0.86 to $0.96.
According to Coinbase’s report, the main culprit behind the GAAP loss was an unrealized $718 million writedown on the exchange’s crypto investment portfolio, while Bitcoin (BTC) and other tokens fell in the fourth quarter.
The company also posted a $395 million loss on strategic investments, including its stake in Circle, the issuer of USDC, which fell about 40% quarter-over-quarter. Ultimately, Coinbase ended the year with $11.3 billion in cash and cash equivalents.
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Market share gains face new competitive pressures
Recent data shows Coinbase is facing increasing competition, with analytics firm Artemis reporting that decentralized derivatives platform Hyperliquid handled $2.6 trillion in trading volume, nearly double Coinbase’s $1.4 trillion in the same period. Artemis also reported a sharp divergence in market performance this year, with Hyperliquid’s token rising 31.7% while Coinbase’s shares fell 27% over the same period.
The company’s mixed quarter follows a busy 2025, in which it joined the S&P 500, received approval to operate under MiCA rules across the European Union and completed major acquisitions including Deribit. It also benefited from a legal victory when the US Securities and Exchange Commission (SEC) dropped a lawsuit against the company.
Not all of the commentary has been positive, however, as evidenced by security researcher Taylor Monahan’s argument that user protection on Coinbase continues to lag, citing more than $350 million in avoidable losses by 2025.
Nevertheless, the exchange has maintained that its strategy focuses on diversification beyond spot trading. It said it is building an ‘Everything Exchange’ that includes derivatives, equity and prediction markets, and it recently partnered with Kalshi to support event-based contracts. Whether that broader model offsets fluctuations in crypto prices will become clearer in the coming quarters.
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