# Morning Minute: Coinbase Misses Earnings on Surprise Loss - Decrypt
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Morning Minute: Coinbase Misses Earnings on Surprise Loss
# Morning Minute: Coinbase Misses Earnings on Surprise Loss
## Coinbase missed earnings, but one of its newest businesses is scaling incredibly fast—and Tom Lee may finally be slowing his Ethereum buying.
Coinbase is the leading cryptocurrency exchange in the US. Image: Shutterstock/Decrypt
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_Morning Minute is a daily newsletter written by_ _[Tyler Warner](https://twitter.com/Tyler\_Did\_It)_ _. The analysis and opinions expressed are his own and do not necessarily reflect those of Decrypt._ _And c_ _heck out our [new daily news show](https://podcasts.apple.com/us/podcast/decrypt-news/id1520762610) covering all of the top stories in 5 minutes or less, downloadable on Apple Pod or Spotify._
* Crypto majors fall another 1-2% while stocks are green; BTC at $80.2k * Coinbase misses earnings with a surprise net loss; prediction markets are booming * Tom Lee says his ETH buying may slow as he approaches 5% * AWS launches new system with Coinbase and Stripe to let AI agents use stables * Tether’s Medical AI model QVAC MedPsy crushes benchmarks, can run on a smart phone
📉 Coinbase Misses Earnings, But Prediction Market Booms
Coinbase [reported Q1 2026 earnings on Thursday](https://decrypt.co/367216/coinbase-shares-slide-crypto-giant-reports-394-million-q1-loss) after the bell and the headline numbers were rough.
* Revenue came in at $1.41 billion against a $1.48 billion consensus, a 31% year-over-year decline. * The EPS was a net loss of $1.49 per share against analyst expectations for a $0.27 profit (big miss) * Consumer transaction revenue fell 45% year-over-year to $734 million. * Operating expenses rose 22% to $1.5 billion.
But on the positive side, institutional transaction revenue grew 31% year-over-year to $185 million, driven by record Deribit derivatives volumes. And prediction markets have become Coinbase’s fastest-scaling product ever, reaching $100 million in annualized revenue in less than two months. Retail derivatives crossed $200 million annualized.
Coinbase also disclosed a new all-time high in crypto trading volume market share, meaning it is taking share from competitors even as the overall market is down. CEO Brian Armstrong said on the call: _“The short-term macro environment was challenging, but the underlying business has never been stronger.”_
The question heading into Q2 is whether the structural products (derivatives, prediction markets, stablecoins, agentic payments) can grow fast enough to offset the fee compression in spot trading.