Coinbase slumps in Q1 2026 as crypto dip tests its diversification push

Coinbase posted a Q1 2026 loss of $1.49 per share on revenue of $1.41 billion, missing estimates as falling crypto prices weighed on spot trading. Transaction revenue and subscription revenue came up short of expectations, while stablecoins revenue rose to $305 million. Derivatives trading surged to about $4.2 billion in volume (up 169% year-over-year), and Coinbase captured an all-time high 8.6% market share, even as executives signaled continued volatility. The company reiterated its plan to become an “everything exchange,” highlighting growth in non‑crypto revenue and forecasting roughly $100 million in annualized revenue from Kalshi’s prediction markets. Separately, Coinbase announced a ~14% workforce reduction (~700 jobs) as part of an AI‑driven restructuring to tighten margins amid slower trading conditions.