Coinbase Reports Disappointing Q1 Earnings Amid Job Cuts
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 07 2026
0mins
Source: Newsfilter
Coinbase's stock rose by 5.02% and reached a 5-day high, reflecting a positive market reaction despite recent challenges.
The company reported a Q1 loss of $1.49 per share, significantly missing Wall Street's expectation of a $0.27 profit, indicating severe impacts from falling cryptocurrency prices on its primary revenue streams. Additionally, Coinbase announced a workforce reduction of approximately 14%, or 700 positions, as part of a broader AI-driven restructuring effort. This news comes amid a backdrop of cautious market sentiment, which has led to a sector rotation in the cryptocurrency space.
Despite the disappointing earnings report, Coinbase is striving to diversify its revenue through subscription and services, with investors keen to see if its non-transaction businesses can provide sufficient income support during periods of low trading activity.
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Analyst Views on COIN
Wall Street analysts forecast COIN stock price to rise
25 Analyst Rating
17 Buy
7 Hold
1 Sell
Moderate Buy
Current: 182.250
Low
230.00
Averages
361.63
High
440.00
Current: 182.250
Low
230.00
Averages
361.63
High
440.00
About COIN
Coinbase Global, Inc. is a holding company of Coinbase, Inc. and other subsidiaries. The Company provides a platform that serves as a compliant on-ramp to the onchain economy and enables users to engage in a variety of activities with their crypto assets in both proprietary and third-party product experiences enabled by access to decentralized applications. It offers consumers their primary financial account for the onchain economy; institutions a full-service prime brokerage platform with access to deep pools of liquidity across the crypto marketplace, and developers a suite of products granting access to build onchain. The Company offers products and services to various customer groups: consumers, businesses, institutions, and developers. Its transaction products consist of consumer trading, prime trading, markets, base protocol and Coinbase wallet. The Company also provides market infrastructure in the form of exchanges for customers to trade spots and derivatives.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Coinbase Becomes First U.S. Regulated Futures Merchant for Crypto Derivatives
- Market Access Breakthrough: Coinbase Financial Markets has become the first and only U.S.-regulated futures commission merchant, offering access to global crypto derivatives markets, including crypto perpetual futures and options, marking the company's leadership in the crypto finance sector.
- Regulatory Support: Guidance issued by the Commodity Futures Trading Commission enables Coinbase to connect U.S. clients to global crypto options and perpetual futures liquidity, further enhancing its competitive position in the market.
- Market Size Potential: Crypto derivatives account for roughly 80% of global crypto trading volume, and this multi-trillion dollar market provides U.S. customers with unprecedented regulated access, which is expected to drive Coinbase's trading volume and revenue growth.
- Strategic Implications: By entering this vast market, Coinbase not only meets customer demand for diversified investment tools but also solidifies its core position in the global crypto finance ecosystem, enhancing its brand influence.
See More
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- Infrastructure Development: Despite Dimon's criticisms of crypto legislation, JPMorgan is quietly building stablecoin infrastructure and has filed to launch a tokenized Treasury fund on Ethereum specifically for stablecoin issuers, indicating a recognition of blockchain technology's legitimacy and a strategic positioning for future market opportunities.
See More
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See More
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See More
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- Launch of Perpetual Futures: Coinbase and Kalshi have introduced perpetual crypto futures, marking the first availability of such instruments for U.S. investors through regulated domestic exchanges, representing a significant advancement in the crypto derivatives market.
- Regulatory Framework Established: Following approval from the Commodity Futures Trading Commission (CFTC), perpetual futures transition from a regulatory gray area into a formal oversight framework, enhancing safety and transparency for investors.
- High Leverage Trading: The newly launched perpetual futures allow for leverage up to 50-to-1, providing investors with opportunities to amplify market movements, although this raises concerns about risks for retail participants, especially in volatile market conditions.
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See More
Coinbase Becomes First U.S. Regulated Futures Merchant for Crypto Derivatives
- Market Access Breakthrough: Coinbase Financial Markets has become the first and only U.S.-regulated futures commission merchant, offering access to global crypto derivatives markets, including crypto perpetual futures and options, marking the company's leadership in the crypto finance sector.
- Regulatory Support: Guidance issued by the Commodity Futures Trading Commission enables Coinbase to connect U.S. clients to global crypto options and perpetual futures liquidity, further enhancing its competitive position in the market.
- Market Size Potential: Crypto derivatives account for roughly 80% of global crypto trading volume, and this multi-trillion dollar market provides U.S. customers with unprecedented regulated access, which is expected to drive Coinbase's trading volume and revenue growth.
- Strategic Implications: By entering this vast market, Coinbase not only meets customer demand for diversified investment tools but also solidifies its core position in the global crypto finance ecosystem, enhancing its brand influence.
See More
Top Prediction Market Stocks for Investors
- Platform Advantage: Analysts recommend Robinhood, Interactive Brokers, and Coinbase as top prediction market stocks due to their large user bases and platforms, which could accelerate adoption and enhance the credibility of new products.
- Market Potential: The importance of prediction markets as forecasting tools is increasing, with analysts believing the segment is still in its early stages, making widespread adoption crucial, and it may eventually become part of an all-in-one app.
- Competitive Edge: Caffital Research highlights DraftKings and Flutter Entertainment's entry into prediction markets, leveraging their brand recognition and previous marketing investments to expand market reach, despite fierce competition in the current market narrative.
- Market Dynamics: Although the rise of prediction markets is seen as a potential headwind, analysts believe that the market launches of DraftKings and Flutter could serve as positive catalysts for stock price rebounds, as current declines do not reflect this potential.
See More
JPMorgan CEO Criticizes Coinbase CEO Amid CLARITY Act Debate
- Legislative Controversy: JPMorgan CEO Jamie Dimon publicly criticized Coinbase CEO Brian Armstrong during a Fox Business interview, labeling him as “full of sh*t” while denouncing the CLARITY Act, which he argues would allow stablecoin issuers to pay interest on deposits without the same regulatory oversight as banks, prompting strong opposition from the banking sector.
- Market Reaction: Following the remarks, JPMorgan's stock fell by 0.10% in after-hours trading, while Coinbase's shares dropped by 0.23%, indicating a neutral market sentiment towards both companies amidst the ongoing crypto legislation dispute, although Coinbase's retail sentiment remains in the 'bearish' zone.
- Policy Debate Intensifies: White House crypto advisor Patrick Witt countered Dimon's claims, asserting that the CLARITY Act includes anti-money laundering provisions and restrictions on stablecoin yield payments, highlighting the growing tension between policymakers and financial institutions.
- Infrastructure Development: Despite Dimon's criticisms of crypto legislation, JPMorgan is quietly building stablecoin infrastructure and has filed to launch a tokenized Treasury fund on Ethereum specifically for stablecoin issuers, indicating a recognition of blockchain technology's legitimacy and a strategic positioning for future market opportunities.
See More
CFTC Approves Kalshi to Trade Bitcoin Perpetual Contracts
- Regulatory Approval: The CFTC has granted KalshiEX LLC the ability to list perpetual contracts tied to Bitcoin's spot price, marking the first approval for such contracts in the U.S., which is expected to drive the growth of the domestic digital asset derivatives market.
- Market Reaction: Following the CFTC's approval, shares of Coinbase and Robinhood rose by 4% and 11% respectively, indicating a positive market response to this new trading product, which may attract more investors to digital asset trading.
- Contract Features: Unlike traditional futures, perpetual contracts have no expiration date, allowing investors to hold positions indefinitely; this flexibility has been widely accepted in global crypto markets and is expected to enhance capital allocation and risk management for American businesses.
- Industry Outlook: Kalshi's CEO stated that this approval will transform Kalshi from a prediction market leader into a next-gen derivatives exchange, and combined with Coinbase's expansion plans, signals significant growth potential for the U.S. digital asset derivatives market.
See More
Surge in Options Trading Volume for Apple and Coinbase
- Apple Options Volume: Apple Inc (AAPL) saw options trading volume of 1.1 million contracts, equivalent to approximately 113 million shares, representing a 225.4% increase over its average daily trading volume of 50.2 million shares in the past month, indicating strong market interest in its future performance.
- High Strike Activity: Notably, the $315 strike call option expiring on May 29, 2026, recorded a trading volume of 143,582 contracts today, representing about 14.4 million underlying shares, suggesting a significant bullish sentiment among investors regarding Apple's stock price.
- Coinbase Options Dynamics: Coinbase Global Inc (COIN) experienced options trading volume of 204,154 contracts, translating to approximately 20.4 million shares, which is 213.4% of its average daily trading volume of 9.6 million shares over the past month, reflecting positive market sentiment towards its future trajectory.
- Bullish Call Options: The $190 strike call option expiring on May 29, 2026, saw a trading volume of 13,657 contracts today, equivalent to about 1.4 million underlying shares, indicating investor optimism about Coinbase's future performance.
See More
Coinbase and Kalshi Launch Perpetual Crypto Futures for U.S. Investors
- Launch of Perpetual Futures: Coinbase and Kalshi have introduced perpetual crypto futures, marking the first availability of such instruments for U.S. investors through regulated domestic exchanges, representing a significant advancement in the crypto derivatives market.
- Regulatory Framework Established: Following approval from the Commodity Futures Trading Commission (CFTC), perpetual futures transition from a regulatory gray area into a formal oversight framework, enhancing safety and transparency for investors.
- High Leverage Trading: The newly launched perpetual futures allow for leverage up to 50-to-1, providing investors with opportunities to amplify market movements, although this raises concerns about risks for retail participants, especially in volatile market conditions.
- Surge in Market Demand: According to CryptoQuant, perpetual futures trading volume reached $61.7 trillion in 2025, a 29% increase from 2024, indicating strong demand from crypto traders seeking new ways to profit amid market volatility.
See More
