Coinbase Posts $394M Net Loss as Q1 Revenue Craters 31% — Layoffs and Rising Competition Add to the Pressure!

Coinbase swung to a $394 million net loss in Q1 2026, a stark reversal from the $66 million profit it posted in the same period a year ago. Revenue dropped 31% year-over-year to $1.41 billion, compounding a 20% decline from the prior quarter, as softer crypto prices and shrinking trading volumes hit the top line hard.

The exchange has already moved to cut costs, announcing plans to reduce its workforce by roughly 14%, with restructuring charges expected to reach as much as $60 million. The belt-tightening signals management sees the revenue pressure as more than a one-quarter blip.

The competitive landscape is also tightening. Morgan Stanley has launched lower-fee crypto trading through its E*Trade platform, a move that could pull retail flow away from dedicated crypto exchanges at exactly the moment Coinbase can least afford it.