Trading volume decreased by 10% quarter over quarter, with transaction revenue falling 19% to $1.26 billion, reflecting challenges in the trading environment.

Coinbase attributed its weak performance to macroeconomic uncertainties, including global trade policy issues, which have negatively impacted consumer sentiment in the crypto market.

As of now, Coinbase's stock price stands at $207.54, with a consensus price target of $259.00, suggesting a potential upside of 25% despite recent challenges.

Overall, the company generated approximately $2 billion in revenue, which was about $200 million below forecasts, with transaction revenue also missing expectations by $70 million.

On a positive note, the SEC's decision to drop its case against Coinbase and the acquisition of Deribit have been viewed as favorable developments for the firm.

Analysts are closely watching how Coinbase capitalizes on recent market volatility in Bitcoin and Ethereum, with expectations for revenue growth driven by stablecoin activities and regulatory clarity.

Coinbase reported its first-quarter earnings on May 8, 2025, which fell significantly short of analysts' expectations, resulting in a drop in shares during after-hours trading.

Despite the disappointing earnings report, Coinbase announced a substantial $2.9 billion acquisition of Deribit, a leading crypto options exchange, positioning itself as a major player in global crypto derivatives.

The earnings report revealed earnings per share of $0.24, far below the anticipated $2.09, and adjusted net income declined to $526.63 million, missing estimates by a wide margin.

The company's revenue reached $2.03 billion, a 24% increase year-over-year, yet it still fell short of analyst consensus estimates.

Interestingly, despite the earnings miss, Coinbase reported a 49% quarter-over-quarter increase in gross USDC balances, indicating strong user engagement.

Looking ahead, Coinbase remains optimistic about expanding its crypto utility and enhancing its trading platform, believing that improved regulatory clarity will support its long-term vision.