Coinbase stock slips 4% as it misses profit and revenue expectations
The crypto exchange announced a $1 billion stock buyback
Coinbase (COIN) shares were down 4% in after-hours trading on Wednesday as the crypto exchange posted weaker-than-expected profit and revenue. The largest cryptocurrency exchange in the United States reported earnings that fell short of analyst expectations, with earnings per share coming in at $0.28 compared to the forecasted $0.41. Revenue also missed projections, reaching $1.21 billion rather than the anticipated $1.26 billion.
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.
Additionally, revenue from Coinbase’s subscription and services—which includes offerings like stablecoins, staking, and leverage for Prime traders—experienced a decline of 7%, totaling $556.1 million.
In its shareholder letter, the company noted, “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 negative for the company, as it demonstrated progress in several areas. In its earnings report, Coinbase announced a $1 billion stock buyback program, signaling confidence in its long-term outlook and offering value to shareholders.
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