Coinbase $COIN ( ▲ 16.47% ) is rising in premarket trading, up more than 6%, even after delivering a fourth-quarter report that fell short of Wall Street’s expectations and swung to a sizable loss. The crypto exchange posted revenue of $1.78 billion, missing the $1.81 billion analysts were looking for, while adjusted earnings per share dropped sharply from a year ago.
The company reported a net loss of $667 million, a steep reversal from the $1.3 billion profit it posted in the same quarter last year. Transaction revenue also came in light at $982.7 million, below forecasts of roughly $998 million, reflecting weaker trading activity across crypto markets.
Stablecoins quietly steal the spotlight
Not everything in the report was gloomy. Stablecoin revenue hit a record $364.1 million, jumping 61% year over year and emerging as one of Coinbase’s fastest-growing businesses. As crypto trading cools, stablecoins are increasingly becoming the platform’s steadier cash engine, benefiting from interest income and growing adoption in payments and transfers.
The surge suggests Coinbase is slowly evolving beyond a pure trading venue into broader financial infrastructure for digital assets. In a market defined by volatility, stable revenue streams suddenly look very attractive.
Technical hiccups at a bad time
Earlier in the day, Coinbase experienced a brief outage that prevented some users from buying, selling, or transferring funds. The company assured customers their assets were safe and said the issue was resolved within about an hour, but the disruption came just hours before the earnings release, amplifying scrutiny.
A rough year for the stock
Despite Friday’s bounce, Coinbase shares have been under heavy pressure amid a broader crypto downturn. The stock is down nearly 40% so far in 2026 and was hit with a double analyst downgrade just before the earnings announcement.
The company was added to the S&P 500 last May, a milestone that once signaled mainstream acceptance. Now, its performance once again hinges on the same factor that built its empire in the first place: whether crypto markets heat back up or stay stuck in a winter freeze.