Coinbase Q4 Earnings & Revenues Miss Estimates on Higher Expenses

Core Insights - Coinbase Global, Inc. reported a fourth-quarter 2025 net operating earnings per share of 66 cents, missing the Zacks Consensus Estimate by 28.2%, and reflecting an 80.4% year-over-year decline, with a net loss of $2.49 per share [1] Operational Update - Total revenues for the quarter were $1.7 billion, missing the Zacks Consensus Estimate by 0.6%, and declining 21.5% year over year due to lower transaction revenues [2] - Total transaction revenues fell 36.8% year over year to $982.7 million, attributed to decreased consumer transaction revenues [2] - Subscription and services revenues increased 13.4% year over year to $727.4 million, driven by higher stablecoin revenues [3] - Total other revenues decreased 4.7% to $71 million [3] - Adjusted EBITDA was $566 million, reflecting a 56% year-over-year decline [3] Financial Update - As of December 31, 2025, Coinbase had cash and cash equivalents of $11.3 billion, up 21.2% from the end of 2024 [5] - Long-term debt increased 40.2% from 2024-end to $5.9 billion [5] - Shareholders' equity was $14.8 billion, up 44% from 2024-end [5] - Net cash provided by operating activities was $2.4 billion in 2025, a decline of 21.8% year over year [5] Q1 2026 Outlook - Coinbase expects subscription and services revenues to be between $550 million and $630 million, influenced by lower average USDC market capitalization and interest rates [6] - Technology and development, along with general and administrative expenses, are projected to be between $925 million and $975 million, remaining roughly flat quarter over quarter [6] - Sales and marketing expenses are expected to range from $215 million to $315 million [7] Full-Year Highlights - For the full year 2025, operating income per share was $4.45, down 53% year over year, missing the Zacks Consensus Estimate by 10.2% [10] - Total operating revenues doubled year over year to $7.1 billion but missed the Zacks Consensus Estimate by 0.8% [10] - Total trading volume grew 156% to $5.2 trillion in 2025 [10]