Coinbase fell short of fourth-quarter expectations on Thursday, as declining crypto prices and softer trading activity weighed on results.
The company reported revenue of $1.78 billion, below analyst forecasts of $1.83 billion. Adjusted earnings per share came in at $0.66, missing the $0.86 consensus estimate.
Transaction revenue totaled $983 million, under the expected $1.02 billion. That figure also marked a decline from $1.046 billion in the third quarter and $1.556 billion in the year-ago period, reflecting weaker market conditions and reduced trading volumes.
Subscription and services revenue reached $727.4 million, down sequentially from $746.7 million but up from $641.1 million a year earlier.
Early first-quarter trends show continued pressure. Through Feb. 10, Coinbase generated about $420 million in transaction revenue and projected subscription and services revenue of $550 million to $630 million for the full quarter.
Despite the miss, the company emphasized its long-term outlook. “We continue to be optimistic about the long-term trajectory of the crypto industry,” Coinbase said, noting that “crypto is cyclical” and that underlying technological progress and adoption continue even amid price volatility.
Shares edged higher in after-hours trading following the release, though the stock had dropped 7.9% during the regular session, extending its year-to-date decline to roughly 40%.
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