Coinbase (COIN) Dips 4% After Hours as Crypto Exchange Posts Weaker-Than-Expected Profit and Revenue

Coinbase (COIN) shares were down 4% in after-hours trading on Wednesday as the crypto exchange posted weaker-than-expected profit and revenue.

Coinbase (NASDAQ:COIN) shares fell about 4% in after-hours trading on Wednesday after the cryptocurrency exchange reported weaker-than-expected profit and revenue.

Here’s how Coinbase performed in the fourth quarter compared to Wall Street consensus:

Earnings per share: $0.28 vs. $0.41 expected

Revenue: $1.21 billion vs. $1.26 billion expected

Coinbase’s transaction fees dropped by 27% from the previous quarter as trading volumes across U.S. exchanges continued to decline. The company attributed this downturn to challenging market conditions, according to its shareholder letter.

Also, revenue from Coinbase’s subscription and services—which includes offerings like stablecoins, staking, and leverage for Prime traders—fell by 7%, coming in at $556.1 million.

In its shareholder letter, the company said, “We are working to drive revenue growth through products like derivatives, international expansion, custody, and deeper integration of USDC into the cryptoeconomy.”

Not all news was bad for the company, as it showed progress in several areas. Coinbase announced a $1 billion stock buyback program in its earnings, showing confidence in its long-term outlook and returning value to shareholders.

Moreover, stablecoin revenue reached $247 million, reflecting a 3% increase from the previous quarter. The company noted that USDC has been the fastest-growing major USD stablecoin year-to-date, driven by Coinbase’s platform incentives and deeper integration of USDC across its product suite.

The company also highlighted the increasing role of cryptocurrency in the U.S. presidential election landscape. Following the election, Coinbase showed its support for organizations like Fairshake, one of the largest non-partisan political action committees (PACs). In a post on X, Coinbase co-founder and CEO Brian Armstrong announced an additional $25 million contribution to Fairshake PAC, which will be used to support pro-crypto candidates ahead of the 2026 midterm elections.