Coinbase Stock Slides After $394M Loss, 31% Revenue Drop, and Two-Hour Outage

• Coinbase posted a $394 million Q1 2026 net loss compared to net income of $66 million a year earlier
• Revenue fell 31% year-over-year to $1.41 billion as crypto trading activity weakened during the market downturn
• Coinbase also suffered a trading outage lasting more than two hours, which the company linked to degraded AWS services

Coinbase stock dropped in after-hours trading, largely due to the company reporting a surprise quarterly loss and revenue miss. The weak Coinbase earnings came during a slowdown in crypto trading activity. But the pressure increased later in the day when users also began reporting transaction issues. This was tied to an AWS outage affecting Coinbase.

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Coinbase Misses Earnings Expectations as AWS Outage Adds to Pressure

Coinbase reported a net loss of $394 million for Q1 2026, compared to net income of $55 million a year earlier. Revenue fell 31% year-over-year to $1.41 billion. It missed analyst expectations of $1.51 billion, according to LSEG data.

The company also posted a loss of $1.49 per share, while analysts had expected a profit of 27 cents. COIN stock fell over 4% in extended trading following the earnings release.

The weaker results showed slower activity across the crypto market during the first quarter. Coinbase’s transaction revenue came in at $755.8 million. This was below expectations of $805.2 million. Subscriptions and services revenue totaled $583.5 million, also below estimates.

Despite the slowdown, Coinbase said stablecoin revenue rose to $305 million from $274 million last year. The company also reported $4.2 billion in derivatives trading volume during the quarter. This is up 169%. year-over-year. Coinbase’s Chief Financial Officer Alesia Haas said,

“We’re trying to diversify the things that people can trade so that as markets shift, as different behaviors shift, we’ll always have something that people want to trade. That diversification will help tamp down some of the volatility we’ve seen from pure crypto-only trading.”

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AWS Outage Disrupted Coinbase Exchange Services

Hours after the earnings release, Coinbase confirmed that some users were unable to complete transactions on Coinbase due to an AWS outage.

Amazon later said the issue was linked to cooling failures at a North Virginia data center. According to AWS, overheating and power-related hardware impairments affected some services within the impacted Availability Zone.

Coinbase said users may have experienced degraded performance for more than two hours while the company investigated the issue. Solana and ALEO transfers also faced delays during the outage, though fiat deposits and withdrawals continued operating normally.

The company repeatedly said customer funds remained safe throughout the disruption.

Coinbase is also continuing its restructuring efforts after announcing plans to cut roughly 700 jobs as part of an AI-focused operational overhaul earlier this week.

Also Read: Morgan Stanley Undercuts Coinbase and Robinhood on Crypto With 0.50% Fees