Coinbase Stock Rises After-Hours Despite Posting Surprise Net Loss In Q4

Coinbase said that crypto is cyclical, and that it is well-capitalized to weather these cycles, with $11.3 billion in cash and cash equivalents.

• Coinbase’s revenue in the fourth quarter tumbled 21% year-over-year to about $1.8 billion.
• The company swung to a net loss compared with a profit from the same period last year, due to falling token prices.
• In Q1’26, Coinbase generated approximately $420 million of transaction revenue, it said. 

Coinbase Global (COIN) shares rose in extended hours of trading on Thursday even after it posted a surprise loss in fourth-quarter (Q4) earnings. 

At the time of writing, the stock was up 3% and was the top trending stock on the Stocktwits platform. 

Q4 Details

Coinbase’s revenue in Q4 tumbled 21% year-over-year to about $1.8 billion. Analysts on average expected Coinbase to post revenue of $1.83 billion in the quarter, according to data from Fiscal.ai. 

The revenue slump was driven by weakness in transaction revenue, which declined 6% quarter-over-quarter, and subscription and services revenue, which was down 3% over the past year quarter. 

The company swung to a net loss of $667 million compared with a $1.3 billion profit from the same period last year, due to falling token prices that led to a slump in trading activity across digital assets. This forced Coinbase to mark down the value of its crypto holdings. 

The company said its total operating expenses were $1.5 billion, up 9% from the year-ago quarter. 

Weak Bitcoin

Bitcoin and other digital assets are grappling with a significant downfall in their prices as selling pressure continues to weigh on cryptocurrencies even as institutional demand has stabilized after outflows over several weeks.

“Crypto is cyclical, and experience tells us it’s never as good, or as bad as it seems. While asset prices can be volatile, under the surface an undercurrent of technological change and crypto product adoption continues,” Coinbase said in a statement. 

The company also said that it is well-capitalized to weather these cycles, with $11.3 billion in cash and cash equivalents, and that it will continue to invest in the future of finance.

Outlook

In Q1’26, through Feb. 10, 2026, Coinbase generated approximately $420 million of transaction revenue, it said. 

The company added that it expects subscription and services revenue in the range of $550 million-$630 million, driven by lower effective interest rates and crypto asset prices versus Q4 average. 

How Did Stocktwits Users React?

Retail sentiment around COIN trended in ‘extremely bullish’ territory amid ‘extremely high’ message volume. 

Shares in the company have fallen 45% over the past year.