Coinbase Stock Tumbles 7% After Disappointing Q2 Results

Coinbase (COIN) reported worse than expected second-quarter results connected Thursday, sending its shares down 7% successful post-market trading.

The crypto speech posted full gross of $1.5 billion, up from $1.45 cardinal successful the aforesaid 4th past twelvemonth but somewhat little than FactSet estimates of $1.59 billion.

Adjusted net earlier interest, taxes, depreciation and amortization (Ebitda) came successful astatine $512 million, down from $596 cardinal a twelvemonth ago.

The results amusement Coinbase’s continued sensitivity to crypto marketplace cycles. Even though bitcoin (BTC) and ether (ETH) rallied to caller yearly highs during the 2nd quarter, transaction measurement fell from a quarter-to-quarter basis, Coinbase said successful a property release. As a result, transaction gross was $764 million, a 39% driblet from the archetypal quarter.

Coinbase’s study follows an upbeat performance from rival Robinhood (HOOD), which reported its ain quarterly results connected Wednesday. HOOD, which is up 160% year-to-date, bushed expectations arsenic the institution saw $28.3 cardinal successful crypto trading measurement successful the 2nd quarter.

Coinbase, meanwhile, continues to thin into its dual individuality arsenic some a retail trading hub and organization crypto infrastructure provider. The institution has launched custody services for spot bitcoin ETFs, expanded its staking offerings and made further advancement with its Base layer-2 network, though these businesses stay secondary to trading revenue.

“In Q2, Coinbase made important strides successful bringing the fiscal strategy onchain by expanding entree to trading done innovative derivative products, listing much spot assets, and expanding our offerings successful markets globally,” the institution said successful its net release.