Coinbase posts $394M loss as crypto market softens, shifts focus to AI and stablecoins.

Coinbase reported a $394 million net loss in Q1 2026, with revenue down 31% to $1.41 billion due to weaker crypto markets and reduced retail trading. Despite the loss, the company is pushing diversification, with subscription and services revenue making up 44% of total revenue and stablecoin revenue at $305 million. CEO Brian Armstrong emphasized a strategic shift toward becoming an "AI-native" platform focused on stablecoins and blockchain infrastructure for AI-driven commerce. Coinbase also cut 14% of its workforce to streamline operations amid market challenges, aiming to build recurring revenue streams less dependent on volatile trading activity.