Shares of Coinbase Global experienced a sharp decline in extended trading on Thursday, February 12, 2026, following the release of quarterly financial results that fell significantly short of Wall Street expectations. The cryptocurrency exchange platform reported an unexpected net loss, sending its stock price down 7.9% to $141.09 after the closing bell.
Financial Performance Details
For the fourth quarter, Coinbase posted a net loss of $666.7 million, equating to $2.49 per share. This result starkly contrasted with analyst projections, which had anticipated a profit of 55 cents per share. Total revenue for the period came in at $1.78 billion. A primary driver of the disappointing figures was a notable slowdown in trading activity, which caused transaction revenue to slide to $982.7 million. This segment remains a critical component of the company's income, making it highly susceptible to volatility in cryptocurrency markets.
In a more positive development, revenue from subscription and services reached $727.4 million. Within this category, stablecoin revenue contributed $364.1 million. However, management provided a softer outlook for this segment in the current quarter, forecasting it to land between $550 million and $630 million. The company attributed this guidance to softer cryptocurrency prices and lower interest rates, factors that can impact earnings from assets held for customers.
Management Commentary and Strategic Context
Chief Executive Officer Brian Armstrong pointed to operational successes, including nearly 1 million paying subscribers for the Coinbase One service and expanded trading activity across the platform. Chief Financial Officer Alesia Haas characterized 2025 as "a strong year for Coinbase, both operationally and financially," noting the company met its revenue and expense targets consistently throughout the year. Despite the quarterly setback, executives emphasized the cyclical nature of the crypto industry, cautioning investors that conditions are "never as good, or as bad as it seems."
This report marks the company's first quarterly loss since the third quarter of 2023. Analysts cited sluggish market conditions and a steep 45% decline in consumer transaction revenue as key factors. The broader digital asset market has lost momentum since early October 2025, pressured by geopolitical developments including new U.S. tariffs on Chinese imports. Bitcoin, a bellwether for the sector, is now trading at nearly half its peak from October 6, 2025. Reflecting this trend, U.S. spot bitcoin exchange-traded funds (ETFs) have recorded persistent outflows, totaling roughly $7 billion in November, $2 billion in December, and over $3 billion in January.
Market Reaction and Analyst Sentiment
The negative earnings surprise triggered a sell-off in related assets. Other crypto-linked equities also declined in the session, with Robinhood Markets shedding 8.9%, Circle dipping 2.1%, and Strategy losing 2.5%. Bitcoin itself traded near $66,167. Year-to-date, shares of Coinbase have fallen approximately 40%.
Analyst sentiment turned notably bearish ahead of the report. Monness, Crespi, Hardt downgraded Coinbase to Sell from Buy, setting a price target of $120. The firm expressed skepticism about expectations for a steady recovery by 2026, suggesting that market softness could persist into mid-2026. However, they maintained a long-term positive view on the company's exposure to stablecoins and tokenized real-world assets. Other market observers highlighted the importance of the company's diversification efforts, such as its partnership with Circle for USDC stablecoin revenue, as crucial "shock absorbers" during downturns.
Separately, regulatory filings dated February 10 revealed that CFO Alesia Haas sold approximately 364,600 Coinbase shares on February 6. The transactions, executed under a pre-arranged 10b5-1 trading plan, were reportedly for covering option exercise costs and tax withholding obligations. The stock traded between $151.57 and $157.04 on the day of the sales.
Looking Ahead: Key Data and Market Focus
Investor attention now shifts to the company's performance in the current quarter. Coinbase indicated it has generated approximately $420 million in transaction revenue through February 10. Traders will be watching to see if this early-quarter pace can be sustained. Furthermore, the broader macroeconomic environment remains a focal point. The release of the U.S. Consumer Price Index for January, scheduled for 8:30 a.m. ET on Friday, February 13, is anticipated to provide critical insight into inflation trends, which could influence both traditional and digital asset markets.
The coming days will test the resilience of Coinbase's business model. While its subscription and services arm provides a degree of stability, the company's warning that even these "steadier businesses—stablecoins, staking, subscriptions—could take a hit" if crypto prices remain sluggish and interest rates continue to drop underscores the interconnected challenges facing the crypto exchange sector as it navigates a complex market cycle.
