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COIN · Q2 FY2026

Coinbase Global, Inc. Q2 FY2026 earnings analysis

By SageNoodle ResearchBearish
Reported results versus estimates
MetricActualEstimateResult
Revenue$1.22B$1.50B (yr ago)Miss
EPS-$1.36$5.14 (yr ago)Miss
Free Cash Flow$0.20B$0.24B (yr ago)Miss
Gross MarginN/M (financial company)N/M (yr ago)Miss
Operating Margin-9.3% pre-tax margin-1.6% pre-tax margin (yr ago)Miss

What changed

Revenue declined 18.7% from Q2 FY2025, while the pre-tax margin deteriorated to -9.3% from -1.6%. EPS swung to a $1.36 loss from $5.14 of earnings, although free cash flow remained positive at $0.20B and improved slightly from Q1 FY2026.

Impact on the investment thesis

With no prior company valuation, we establish fair value at $174 per share using 3.5 times current book value. The weak revenue and earnings print limits the warranted multiple, while $2.71B of net cash and positive quarterly free cash flow prevent a more severe reduction.

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