Coinbase reported a weaker first quarter, but the more interesting signal was how much of the business is now coming from crypto infrastructure rather than trading alone.

The quarter

In its Form 10-Q for the quarter ended March 31, Coinbase reported $1.41 billion in total revenue, down from $2.03 billion a year earlier. Transaction revenue fell to $755.8 million from $1.26 billion, while trading volume dropped to $202 billion from $401 billion. The company posted a net loss of $394.1 million for the quarter.

The accompanying earnings deck shows the diversification story more clearly. Subscription and services revenue was $583.5 million, or about 44% of net revenue, and stablecoin revenue reached $305 million. Coinbase also said trailing 12-month derivatives trading volume was up 169% year over year, and that retail derivatives annualized revenue had moved above $200 million.

Why it matters

The verified takeaway is narrow but important: Coinbase is still highly exposed to softer spot-market conditions, yet a growing share of its business now comes from USDC, staking, derivatives, and other onchain services.

That matters beyond one earnings miss. As one of crypto's largest public companies, Coinbase is becoming a useful read-through on which parts of the market stay resilient when prices and volatility cool. In Q1, the brokerage side weakened sharply, but the rails around it held up better.