Coinbase NASDAQ:COIN shares fell about 10% on Friday morning after the cryptocurrency exchange posted a third-quarter loss and weaker transaction activity, with investors weighing softer trading conditions against gains in newer businesses.
Coinbase reported a net loss of $359.5 million, or $1.36 per share, for the quarter ended June 30, compared with net income of $1.43 billion, or $5.14 per share, a year earlier. Revenue from transactions dropped 21% to $599 million as crypto market activity weakened.
Coinbase also recorded a 12.2% decline in subscription and services revenue to $555.1 million. The segment includes businesses outside direct trading and has become a larger part of the company's revenue mix.
Still, Coinbase gained ground in crypto trading. Its market share reached 10.3%, up from 9.1% in the prior quarter, while prediction-market activity more than doubled. The company also reduced its full-year adjusted expense range, pointing to tighter cost management.