AI Takeaway
Coinbase reported a net loss of $394.1M in Q1 FY2026, a sharp reversal from the prior year's $65.6M profit, as revenue fell 30.5% YoY to $1.41B amid declining crypto market activity and surging operating costs including a 47.9% jump in R&D spending.
Revenue
$1.41B
-30.54% YoY
EPS (Basic)
$-1.49
-673.08% YoY
Operating Income
$-21.42M
-103.03% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Total revenue fell 30.5% YoY from $2.03B to $1.41B in Q1 FY2026, reflecting a significant pullback in crypto market volumes and transaction-based revenue compared to the elevated activity seen in the prior-year period.
Source: Source: 10-Q Income Statement Data
Operating income swung from a $705.8M profit to a -$21.4M loss YoY (-103.0%), indicating that the company's cost base — particularly R&D at $525.6M (+47.9% YoY) — has grown faster than revenue can support in a down-market environment.
Source: Source: 10-Q Income Statement Data
R&D expense surged 47.9% YoY to $525.6M, representing approximately 37% of total revenue, suggesting Coinbase is investing heavily in product development and infrastructure even as top-line revenue contracts.
Source: Source: 10-Q Income Statement Data
2 more insights available
Upgrade to unlockCoinbase's revenue is highly sensitive to cryptocurrency trading volumes and asset prices, which declined sharply in Q1 FY2026, causing a 30.5% revenue drop. A sustained bear market or regulatory crackdown on crypto assets could further compress transaction revenues with limited ability to offset through fixed-cost reductions.
Source: Source: 10-Q Income Statement Data
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $-1.49 versus the $0.32 analyst consensus — a -559.7% miss for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $1.41B | $2.03B | -30.54% |
Operating Income | $-21.42M | $705.81M | -103.03% |
Net Income | $-394.12M | $65.61M | -700.71% |
EPS (Basic) | $-1.49 | $0.26 | -673.08% |
EPS (Diluted) | $-1.49 | $0.24 | -720.83% |
R&D Expense | $525.65M | $355.37M | +47.92% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $28.85B | $21.73B | +32.75% |
Current Assets | $19.68B | $17.45B | +12.75% |
Total Liabilities | $15.37B | $11.26B | +36.45% |
Current Liabilities | $9.19B | $6.93B | +32.56% |
Stockholders' Equity | $13.48B | $10.47B | +28.78% |
Cash & Equivalents | $10.21B | $9.97B | +2.36% |
Long-Term Debt | $7.2B | $4.24B | +69.93% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $182.74M | $852.69M | -78.57% |
Investing Cash Flow | $-239.06M | $-125.33M | -90.74% |
Financing Cash Flow | $-864.91M | $-906.91M | +4.63% |
Share Buybacks | $1.06B | $0 | — |
D&A | $68.01M | $33.33M | +104.02% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | -1.5% | 34.7% | -36.21% |
Net Margin | -27.9% | — | — |
ROE | -2.9% | — | — |
ROA | -1.4% | — | — |
Current Ratio | $2.141 | — | — |
Debt to Equity | $1.14 | — | — |
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Coinbase reported a net loss of $394.1M and EPS of -$1.49 in Q1 FY2026, a sharp reversal from the $65.6M profit and $0.26 EPS in the prior year. Whether this beat or missed analyst consensus estimates would require external estimate data not available in this filing.
Coinbase's revenue fell 30.5% YoY to $1.41B in Q1 FY2026, down from $2.03B in the prior year, primarily due to lower cryptocurrency trading volumes and reduced transaction-based fees. The company's revenue is highly correlated with crypto market activity, which declined significantly during the quarter.
The key takeaways are a 30.5% revenue decline to $1.41B, a swing to a $394.1M net loss, a 47.9% surge in R&D spending to $525.6M, and a 69.9% increase in long-term debt to $7.2B. Despite the losses, Coinbase also repurchased $1.06B in shares, a notable capital allocation decision during a down quarter.
Based on the financial data, key risks include heavy revenue dependence on volatile crypto trading volumes, a rapidly rising cost base with R&D at ~37% of revenue, and significantly increased leverage with long-term debt up 69.9% YoY to $7.2B. Operating cash flow also fell 78.6% YoY to $182.7M, narrowing the company's financial buffer.
Coinbase maintains a current ratio of 2.14x and $10.2B in cash and equivalents, indicating adequate short-term liquidity. However, the company's debt-to-equity ratio has risen to 1.14x, net margin is -27.9%, and free cash flow turned slightly negative at approximately -$56M, suggesting financial health has weakened compared to the prior year.