TechFlow news: Cryptocurrency exchange Coinbase (COIN) reported second-quarter revenue slightly exceeding Wall Street analysts' expectations, with total Q2 revenue reaching $1.45 billion, above the FactSet consensus estimate of approximately $1.4 billion.
However, adjusted EBITDA for the second quarter was $596 million, below the market consensus of $607.7 million.
Transaction fee revenue, Coinbase's largest revenue source, declined 27% from the previous quarter, as trading volume dropped 28%. A bright spot in Q2 was subscription and services revenue, which rose 17% year-on-year. In its letter to shareholders, the company said this growth benefited from increased USDC balances and market capitalization on its platform, along with rising cryptocurrency prices, particularly for SOL and ETH.
Coinbase is working to diversify its revenue streams by participating in spot Bitcoin and Ethereum ETF businesses, including listing and custody services. The exchange also plans to launch a tokenized money market fund, entering the real-world assets (RWA) sector.
In the minutes following the earnings release, Coinbase's stock price rose about 2%. Year-to-date, its share price has increased approximately 48%, while remaining largely flat over the past month.
