Coinbase shares fell about 5% in after hours trading after the exchange reported a second quarter loss and lower revenue despite reaching a record share of crypto trading activity.

The company reported revenue of approximately $1.2 billion, down from $1.5 billion a year earlier. Coinbase posted a loss of $1.36 per share compared with earnings of $5.14 per share during the same period last year.

Coinbase said its share of global crypto trading volume reached a record 10.3%, up from 9.1% during the first quarter. The result marked its third consecutive quarter of market share gains despite weaker conditions across the broader crypto market.

Derivatives trading remained close to the previous quarter’s record level even as overall market volume declined by double digits. Its related event contracts and revenue grew 106% from the previous quarter and surpassed a $100 million annualized revenue rate.

Stablecoins were another source of growth. Average USDC held across Coinbase products reached a record $20 billion, representing more than 30% of the stablecoin’s circulating supply at the end of the quarter.

Coinbase said USDC and its partner stablecoins accounted for 79% of the more than $37 trillion in stablecoin transaction volume recorded this year. Stablecoin volume on the Base network increased sevenfold from a year earlier.

The company also continued reducing its dependence on Bitcoin trading fees. Revenue excluding Bitcoin spot trading represented 88% of net revenue during the quarter.

Subscription and services revenue reached $555 million, up from $6 million in the second quarter of 2020. The segment represented 48% of net revenue, compared with 29% in the fourth quarter of 2024.

Coinbase also reported its 14th consecutive quarter of positive adjusted EBITDA and lowered its projected adjusted expenses for the full year.

The company said wider use of artificial intelligence was improving engineering efficiency. The number of code changes processed per engineer increased 2.2 times from a year earlier, while integration test coverage across core services rose 2.5 times over six months.

Coinbase said the results showed that its business had become less dependent on Bitcoin prices and was generating a larger share of revenue from stablecoins, derivatives, subscriptions, payments and financial infrastructure.