Coinbase Global (COIN) Q1 2026 earnings summary

Executive summary

• Q1 2026 total revenue was $1.4 billion, down 21% quarter-over-quarter and 27% year-over-year, with a net loss of $394 million and positive adjusted EBITDA of $303 million, despite challenging market conditions and a 50% drop in trading volume.

• Achieved all-time highs in global crypto trading market share and USDC held, with 12 consecutive quarters of net native unit inflows and $294 billion in assets on platform.

• Significant progress on strategic priorities, including Everything Exchange, stablecoins/payments, on-chain growth, and product innovation, with 12 products generating over $100 million in annualized revenue.

• Announced a restructuring plan post-quarter to reduce workforce by 700 employees, incurring $50–$60 million in Q2 charges, and began transition to AI-native operations.

• Completed $4.3 billion acquisition of Deribit and $176 million acquisition of Echo, and managed dilution through $1.1 billion in share repurchases, offsetting 90% of shares issued for employee compensation since Q4 2024.

Financial highlights

• Transaction revenue was $756 million, down 23% quarter-over-quarter and 40% year-over-year, with consumer revenue falling 23% and institutional revenue dropping 27%.

• Subscription and services revenue reached $584 million, representing 44% of net revenue, and stablecoin revenue was $305 million, with record average USDC held at $19 billion.

• Operating expenses were $1.4 billion, down 5% sequentially, with adjusted expenses at $1.13 billion, down 8% sequentially.

• Ended Q1 with $10.2 billion in cash and equivalents, $12 billion in total resources, and $7.2 billion in long-term debt.

• Net cash provided by operating activities was $182.7 million, down from $852.7 million in Q1 2025.

Outlook and guidance

• Q2 2026 subscription and services revenue expected between $565 million and $645 million, with transaction revenue of ~$215 million quarter-to-date through May 5.

• Q2 tech and G&A expenses projected at $820 million–$870 million, down 4–9% from Q1, with adjusted expenses expected to be flat year-over-year, excluding USDC rewards growth.

• 2026 adjusted expenses forecasted at $4.3–$4.6 billion, about $500 million lower than Q4 2025 annualized exit rate.

• $50–$60 million in Q2 restructuring expenses due to headcount reduction and AI transition.

• Sales and marketing expenses anticipated to be in line with or lower than Q1 2026.