Coinbase Posts $667M Loss but CEO Claims More Bullish Than Ever

 alex.trader24
 
  alex.trader24
 
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Chief Market Analyst with over 15 years experience with candid commentary and focuses on daily market analysis and financial research writing
 

•  13 Feb 2026
 

•   COIN  
   
  -0.18%

$COIN Coinbase reported a staggering net loss of $667 million, or $2.49 per share, for Q4 2025, a sharp reversal from a $1.3 billion profit during the same period last year. The plunge highlights the deep exposure to the volatile crypto market, which has shed nearly $2 trillion in global market capitalization since October, driving both investor caution and massive swings in trading activity.

The bulk of the loss stems from a $718 million accounting writedown on Coinbase holdings in Bitcoin, Ethereum, and other digital assets. While largely non-cash, these mark-to-market adjustments pushed the quarterly results deep into the red. Excluding crypto asset fair value changes, the company posted adjusted EBITDA of $566 million, down 56% year-over-year and $89 million below Wall Street expectations. Total quarterly revenue fell to $1.7 billion, a 22% decline compared to Q4 2024, reflecting a sharp drop in trading volumes and retail investor activity. Annual revenue reached $6.89 billion, with net profits slashed by 51% to $1.26 billion.

Trading activity on the platform also took a hit. Total transaction volume dropped to $215 billion, down 51% from $439 billion a year ago, and trading fee revenue plunged 37% to $983 million. Retail trading revenue fell more than 45%, missing analyst forecasts by around $41 million. Bitcoin, the flagship crypto, has fallen roughly 48% since its October high of $126,000, currently trading near $65,000, dragging Coinbase share price down 63% from its peak and stoking fears of another “crypto winter.”

Yet despite the grim numbers, Coinbase CEO Brian Armstrong remains optimistic. During the earnings call, he emphasized that the company has weathered similar cycles before and continues to expand even amid market downturns. Armstrong described himself as “more bullish than ever,” noting that opportunities exist in both rising and falling markets. Following the report, $COIN shares jumped nearly 10% in after-hours trading, reflecting investor confidence in the management long-term strategy.

Part of that strategy includes diversifying revenue streams. Over the past year, Coinbase has moved beyond crypto trading into stock trading, tokenized equities, futures contracts, and prediction markets, aiming to position itself as a broader investment platform. The company now operates 12 business units, each generating over $100 million annually. Subscription and services revenue, seen as more stable, totaled $727 million for the quarter, with $364 million linked to USDC-related activity. Coinbase also benefits from a revenue-sharing agreement with Circle, the issuer of USDC, and earns interest on stablecoin holdings while offering a 3.5% yield to premium program participants.

Coinbase has also been active politically, pushing for regulatory clarity in the U.S. crypto market. Armstrong has publicly opposed the Clarity Act, a proposed bill to integrate digital assets into traditional finance, successfully delaying a Senate Banking Committee vote. While the bill opponents cite the need for clear rules, some regulators and banking leaders warn against inaction. The debate centers on whether crypto exchanges can offer yields on stablecoins, a key revenue component for Coinbase. Armstrong stressed that fair treatment is essential but remains confident that regulatory clarity is forthcoming.

Looking ahead to Q1 2026, Coinbase forecasts cautious performance. As of February 10, trading fee revenue totaled $420 million, while subscription and services revenue are projected at $550–630 million, down from $698 million in Q1 2025. The company currently trades at a market value of $42 billion, down 30% year-to-date and 47% over the past 12 months.

Coinbase report underscores the challenges of the crypto market while highlighting the resilience of a company actively diversifying revenue and preparing for broader adoption. With regulatory clarity on the horizon and Armstrong bullish outlook, COIN may offer opportunities for those willing to navigate volatility.

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