Coinbase Global, Inc. · Q2 2026 call

Now, over time, our revenue has really decoupled from Bitcoin trading fees. And now 88% of our net revenue is from something other than Bitcoin spot trading. This has made us a far more durable company than in past cycles.

And on Circle, our partnership auto-renews in perpetuity with the same terms as long as basic conditions are met. So I can share now that those conditions have been met, and it will renew on the same terms this August.

there will soon be more AI agents than humans in the world, and they're going to need to hire each other and pay for goods and services. We call this the agentic economy, and it's going to need new financial infrastructure to make it work because AI agents can't sign up for a bank account or similar financial products today.

In the 2nd quarter of 2026, we generated $1.2 billion of total revenues, split roughly half and half between transaction and subscription and services revenues. We had a quarterly net loss of $359 million, Adjusting for largely unrealized mark-to-market losses, our adjusted net loss was $105 million, and we generated $208 million of positive adjusted EBITDA.

I want to start with an assessment of the quarter because the headline figures alone don't tell the full story. We continue to control what we can control. And the underlying business performed well.

We fell slightly short of our expected range for subscription and services revenue driven by 2 factors. One, the timing of on-platform deals for USDC that landed later in the quarter than expected. And second, larger than anticipated headwinds to crypto asset prices, which weighed on our staking revenues.

We ended Q2 with $8.6 billion in cash and cash equivalents and total available resources of $10 billion. Within the quarter, we repaid our $1.3 billion 2026 convertible note that was due on June 1st, 2026.

in the second quarter, we repurchased an additional 814,000 shares. Year to date, we've retired nearly 7 million shares for $1.2 billion. We have approximately $2 billion of our repurchase authorization remaining available.

We are also reducing and narrowing our annual adjusted expense outlook range to $4.2 to $4.45 billion […] This represents roughly a $600 million cost reduction compared to the 2025 annualized exit rate for 4th quarter 2025.

as our business has evolved and we're now supporting multiple asset classes, we believe that the prior trading volume metric, which was focused solely on spot crypto trading volume, no longer is reflecting the breadth of our business.

Base sequencer revenue actually is in other transaction revenue. It is not material yet, and so we have not broken it out and provided incremental disclosures. But the way to think about Base is the transaction fee right now is under 1 penny per transaction.

This quarter as transaction expenses ticked up, it really was the growth of prediction markets related expenses in that transaction expense.

I want to be very clear that we have never been a company that has been good at predicting crypto prices. What we focus on is driving adoption and driving product innovation through a cycle. The peaks and valleys have become less steep than they were 5, 10 years ago, but crypto has always been cyclical

First and foremost, we're focused on accelerating efficiency. […] I think that there'll be some areas where we see the ability to become more efficient and therefore, we need less humans in the loop with AI processes. But our goal is to then redeploy those humans to higher value-added processes at this time.

We are working hard towards a Base decentralization and really exploring that token, but I don't have any new news to share today.

That's right. So the margin is 50%. So you have that right. And you're directionally close. We shared with you that if we annualize Q2, we're on a $100 million run rate

It's a little bit lower than that, but that's the right ballpark. And then, yeah, the nuance that I mentioned is that the way the deal is structured, when the balances land, the rewards don't start to pay out for a period of time thereafter. So the balances did land in Q2 and we will start to pay rewards in Q3.

The way it was split, we would expect that the vast majority of all of the USDC on Hyperliquid would be held at Coinbase. That would be in the neighborhood of around 90%. […] The balances have actually grown quite a bit since then.

your question was about what happens if it doesn't pass. And I think in that world, it's actually kind of just business as usual for Coinbase. […] we already do many of the things that would be required by the CLARITY Act as just sort of a good best practice.

I think AI agents are probably going to care about a similar set of things that humans would. Certainly price is one of those factors, and Base actually delivers sub-cent and sub-1-second settlement, so it's very competitive from that point of view. But I also think AI agents are going to choose infrastructure that is reliable and safe and liquid and compliant and has good uptime, just like they might choose AWS or some kind of cloud vendor

If they're willing to store their assets with us, then whenever they come back for the one product that they are using today, we have a chance to put something in front of them. And over time, they can adopt additional products.

I think Bitcoin will come back in a big way too, by the way.

At any given time in trading, there's always something that's up and something that's down. That's part of the Everything Exchange strategy. You've got to have all the shelves stocked so you have the inventory when that thing trends that week.

whenever you have a growing market, you see initially fragmentation, and then over time you typically see consolidation. […] So my guess is we're going to see something similar happen with blockchains. Stripe has launched one, and Robinhood has launched one.