Coinbase Posts $666.7 Billion Loss in Q4 2025

The crypto exchange's first loss in over 2 years amid a flight to gold and crypto market selloff

Published on Feb. 13, 2026

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Coinbase, the San Francisco-based cryptocurrency exchange, reported a net loss of $666.7 million, or $2.49 per share, in the fourth quarter of 2025. This marks the company's first quarterly loss since Q3 2023, as a flight to gold and a broader selloff in the crypto market led to lower trading volumes. Digital assets declined sharply over the quarter, with Bitcoin falling nearly 30% from its all-time high in early October 2025.

Why it matters

Coinbase's loss is a significant indicator of the volatility and cyclical nature of the cryptocurrency market. The company's reliance on transaction revenue makes it vulnerable to market downturns, raising questions about the long-term sustainability of crypto-focused businesses. The report also highlights the growing influence of stablecoins, which helped offset some of Coinbase's losses through increased revenue from its USDC operations.

The details

Coinbase's transaction revenue plummeted to $982.7 million from $1.56 billion a year prior, largely due to a more than 45% drop in consumer transaction revenue. However, the company's subscription and services revenue grew 13.5% to $727.4 million, driven by an expansion in its stablecoin operations. Stablecoin revenue surged to $364.1 million from $225.9 million, as Coinbase earns revenue from USDC, a stablecoin issued in partnership with Circle.

  • In February 2025, the crypto market lost $800 billion in market capitalization before a slight rebound.
  • Bitcoin recovered to more than $86,000 by late February 2025, but the sector has remained in a bear market despite a White House supportive of digital assets.
  • U.S. spot bitcoin ETFs demonstrated net withdrawals of $7 billion in November 2025, $2 billion in December 2025, and more than $3 billion in January 2026.

The players

Coinbase

A San Francisco-based cryptocurrency exchange that endured a net loss of $666.7 million in Q4 2025, its first loss since Q3 2023.

Bitcoin

The leading cryptocurrency that fell below $82,000 in November 2025, an approximately 30% decline from its all-time high of $126,000 earlier that month, erasing the year's gains.

USDC

A stablecoin issued in partnership between Coinbase and New York-based payments technology company Circle, which generated increased revenue for Coinbase in Q4 2025.

The GENIUS Act

Legislation signed into law by President [Donald] Trump in July 2025 that creates a federal framework for stablecoins, requiring 100% reserve backing, consumer safeguards, audit standards, and boundaries to prevent rehypothecation.

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What’s next

The White House meeting earlier this month did not resolve disagreements between major U.S. banks and cryptocurrency firms, suggesting continued uncertainty around the regulatory landscape for digital assets.

The takeaway

Coinbase's first quarterly loss in over 2 years highlights the volatility and cyclical nature of the cryptocurrency market, underscoring the challenges faced by crypto-focused businesses that rely heavily on transaction revenue. However, the company's growth in stablecoin operations suggests the increasing importance of these digital tokens in the evolving financial landscape.