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Coinbase Q1 Earnings Miss Expectations, Revenues Decline Y/Y
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Key Takeaways
COIN posted a Q1 adjusted operating loss of 17 cents per share versus expected earnings of 36 cents.
Revenues fell 30.5% to $1.4B as transaction revenues dropped 40% on weaker consumer activity.
Operating expenses rose 8%, while adjusted EBITDA plunged 67% amid lower blockchain rewards.
Coinbase Global, Inc. (COIN - Free Report) reported first-quarter 2026 adjusted operating loss of 17 cents per share, in contrast to the Zacks Consensus Estimate of earnings of 36 cents. COIN had reported an operating income of $1.94 per share in the prior-year quarter.
The quarterly results reflected lower consumer transaction revenues, a decrease in blockchain rewards and other revenues, lower trading volume, and escalating operating expenses.
Coinbase Global, Inc. Price, Consensus and EPS Surprise
Total trading volume decreased 50% year over year to $202 million in the reported quarter. The Zacks Consensus Estimate was pegged at $224 million.
Total revenues of $1.4 billion missed the Zacks Consensus Estimate by 5.6%. The top line decreased 30.5% year over year due to lower Transaction revenues, Subscription and services revenues, and other revenues.
Total transaction revenues decreased 40% year over year to $755.8 million in the quarter. The downside was due to a decrease in consumer transaction revenues, offset by an increase in institutional transaction revenues. The Zacks Consensus Estimate was pegged at $827 million.
Total subscription and services revenues decreased 14% year over year to $583.5 million in the reported quarter. The downside was due to a decrease in blockchain rewards, offset by increases in stablecoin revenues. The Zacks Consensus Estimate was pegged at $620 million.
Adjusted EBITDA was $303 million in the reported quarter, which fell 67% from the year-ago quarter. Total operating expenses increased 8% to $1.4 billion in the quarter due to higher technology and development, sales and marketing, losses on crypto assets held for operations, net, and other operating expenses.
Financial Update
Coinbase exited the first quarter with cash and cash equivalents of $10.2 billion as of March 31, 2026, down 9.6% from 2025-end.
As of March 31, 2026, long-term debt remains flat from 2025-end to $5.9 billion.
Shareholders' equity was $13.5 billion at first-quarter 2026-end, down 8.9% from 2025-end.
Net cash used in operating activities was $182,7 million in the first quarter of 2026, which decreased 78.6% year over year.
Q2 2026 Outlook
Coinbase expects subscription and services revenues to be in the range of $565-$645 million.
COIN expects technology and development and general and administrative expenses to be in the range of $820-$870 million.
Coinbase expects sales and marketing expenses to be in the $200-$300 million range. Coinbase expects transaction expenses to be in the low-to-mid teens as a percentage of net revenues.
Coinbase expects stock-based compensation to be $240 million, and restructuring expense to be in the range of $50-$60 million.
Performance of Other Financial - Miscellaneous Services Providers
Moody's Corporation (MCO - Free Report) reported first-quarter 2026 adjusted earnings of $4.33 per share, which outpaced the Zacks Consensus Estimate of $4.25. The bottom line grew 13% from the year-ago quarter.
After considering certain non-recurring items, net income attributable to Moody's was $661 million, or $3.73 per share, up from $625 million, or $3.46 per share, in the prior-year quarter. Quarterly revenues were $2.08 billion, which surpassed the Zacks Consensus Estimate of $2.07 billion. The top line rose 8% year over year. Total expenses were $1.16 billion, up 7% year over year.
Bread Financial Holdings, Inc. (BFH - Free Report) reported first-quarter 2026 operating income of $4.18 per share, outperforming the Zacks Consensus Estimate by 39.3%. The bottom line rose 49% year over year. Revenues increased 5% from the prior-year level to $1 billion, exceeding the consensus estimate by 1.1%.
Credit sales of $6.5 billion increased 7% year over year. Average loan increased 1% to $18.3 billion, and end-of-period loans rose 2% to $18.1 billion. Total interest income increased 2% to $1.2 billion, missing the Zacks Consensus Estimate by 0.4%, and our model estimate by 2.1%. The net interest margin improved 120 basis points to 19.3%, whereas the Zacks Consensus Estimate was pegged at 18.2%.
Virtu Financial, Inc. (VIRT - Free Report) reported first-quarter adjusted earnings per share of $2.24, which beat the Zacks Consensus Estimate by 34.9%. The bottom line increased 72.3% year over year. Adjusted Net Trading Income rose 58.2% year over year to $786.5 million, surpassing the consensus estimate by 37.5%. Revenues from commissions, net and technology services rose 23.3% year over year to $186.6 million. The metric beat the Zacks Consensus Estimate and our model estimate of $163.2 million.
Interest and dividend income of $127.5 million increased 16.9% year over year but missed both the Zacks Consensus Estimate and our estimate of $128.6 million. Adjusted EBITDA increased 62.7% year over year to $520.6 million. Adjusted EBITDA margin improved year over year to 66.2% from 64.4% a year ago.
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Coinbase Q1 Earnings Miss Expectations, Revenues Decline Y/Y
Key Takeaways
Coinbase Global, Inc. (COIN - Free Report) reported first-quarter 2026 adjusted operating loss of 17 cents per share, in contrast to the Zacks Consensus Estimate of earnings of 36 cents. COIN had reported an operating income of $1.94 per share in the prior-year quarter.
The quarterly results reflected lower consumer transaction revenues, a decrease in blockchain rewards and other revenues, lower trading volume, and escalating operating expenses.
Coinbase Global, Inc. Price, Consensus and EPS Surprise
Coinbase Global, Inc. price-consensus-eps-surprise-chart | Coinbase Global, Inc. Quote
Operational Update
Total trading volume decreased 50% year over year to $202 million in the reported quarter. The Zacks Consensus Estimate was pegged at $224 million.
Total revenues of $1.4 billion missed the Zacks Consensus Estimate by 5.6%. The top line decreased 30.5% year over year due to lower Transaction revenues, Subscription and services revenues, and other revenues.
Total transaction revenues decreased 40% year over year to $755.8 million in the quarter. The downside was due to a decrease in consumer transaction revenues, offset by an increase in institutional transaction revenues. The Zacks Consensus Estimate was pegged at $827 million.
Total subscription and services revenues decreased 14% year over year to $583.5 million in the reported quarter. The downside was due to a decrease in blockchain rewards, offset by increases in stablecoin revenues. The Zacks Consensus Estimate was pegged at $620 million.
Adjusted EBITDA was $303 million in the reported quarter, which fell 67% from the year-ago quarter. Total operating expenses increased 8% to $1.4 billion in the quarter due to higher technology and development, sales and marketing, losses on crypto assets held for operations, net, and other operating expenses.
Financial Update
Coinbase exited the first quarter with cash and cash equivalents of $10.2 billion as of March 31, 2026, down 9.6% from 2025-end.
As of March 31, 2026, long-term debt remains flat from 2025-end to $5.9 billion.
Shareholders' equity was $13.5 billion at first-quarter 2026-end, down 8.9% from 2025-end.
Net cash used in operating activities was $182,7 million in the first quarter of 2026, which decreased 78.6% year over year.
Q2 2026 Outlook
Coinbase expects subscription and services revenues to be in the range of $565-$645 million.
COIN expects technology and development and general and administrative expenses to be in the range of $820-$870 million.
Coinbase expects sales and marketing expenses to be in the $200-$300 million range. Coinbase expects transaction expenses to be in the low-to-mid teens as a percentage of net revenues.
Coinbase expects stock-based compensation to be $240 million, and restructuring expense to be in the range of $50-$60 million.
Zacks Rank of COIN
COIN currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Financial - Miscellaneous Services Providers
Moody's Corporation (MCO - Free Report) reported first-quarter 2026 adjusted earnings of $4.33 per share, which outpaced the Zacks Consensus Estimate of $4.25. The bottom line grew 13% from the year-ago quarter.
After considering certain non-recurring items, net income attributable to Moody's was $661 million, or $3.73 per share, up from $625 million, or $3.46 per share, in the prior-year quarter. Quarterly revenues were $2.08 billion, which surpassed the Zacks Consensus Estimate of $2.07 billion. The top line rose 8% year over year. Total expenses were $1.16 billion, up 7% year over year.
Bread Financial Holdings, Inc. (BFH - Free Report) reported first-quarter 2026 operating income of $4.18 per share, outperforming the Zacks Consensus Estimate by 39.3%. The bottom line rose 49% year over year. Revenues increased 5% from the prior-year level to $1 billion, exceeding the consensus estimate by 1.1%.
Credit sales of $6.5 billion increased 7% year over year. Average loan increased 1% to $18.3 billion, and end-of-period loans rose 2% to $18.1 billion. Total interest income increased 2% to $1.2 billion, missing the Zacks Consensus Estimate by 0.4%, and our model estimate by 2.1%. The net interest margin improved 120 basis points to 19.3%, whereas the Zacks Consensus Estimate was pegged at 18.2%.
Virtu Financial, Inc. (VIRT - Free Report) reported first-quarter adjusted earnings per share of $2.24, which beat the Zacks Consensus Estimate by 34.9%. The bottom line increased 72.3% year over year. Adjusted Net Trading Income rose 58.2% year over year to $786.5 million, surpassing the consensus estimate by 37.5%. Revenues from commissions, net and technology services rose 23.3% year over year to $186.6 million. The metric beat the Zacks Consensus Estimate and our model estimate of $163.2 million.
Interest and dividend income of $127.5 million increased 16.9% year over year but missed both the Zacks Consensus Estimate and our estimate of $128.6 million. Adjusted EBITDA increased 62.7% year over year to $520.6 million. Adjusted EBITDA margin improved year over year to 66.2% from 64.4% a year ago.