Catenaa, Saturday, February 21, 2026- Benchmark analyst Mark Palmer reduced Coinbase’s price target by 37% to $267 from $421 after the exchange reported fourth-quarter results that missed revenue and earnings expectations.
The new target still implies roughly 60% upside from Coinbase’s current price near $164.
Coinbase posted $1.71 billion in net revenue for Q4 2025, down 5% sequentially and below Wall Street’s $1.81 billion estimate.
Transaction revenue fell 6% to $983 million amid an 11% decline in total crypto market capitalization. On a GAAP basis, the company reported a $667 million net loss, driven by $718 million in unrealized losses on its crypto portfolio and $395 million in strategic investment losses.
Despite headline misses, institutional transaction revenue rose 37% sequentially to $185 million, aided by the first full quarter from Deribit, the crypto options exchange acquired for $2.9 billion in August 2025.
Stablecoin revenue increased 3% to $364 million, with USDC balances reaching record highs. Subscription and services revenue hit $727.4 million in Q4, comprising roughly 43% of net revenue, and the company now counts 12 products generating over $100 million in annualized revenue.
Benchmark highlighted Coinbase’s diversification and durability, noting its expansion into equities trading, prediction markets, and record commodities volumes.
Management guided Q1 2026 subscription and services revenue between $550 million and $630 million, with expenses expected to remain flat. Coinbase ended 2025 with $11.3 billion in cash and authorized $2 billion in additional stock buybacks.
Shares surged nearly 18% on Friday to around $164, reflecting investor confidence despite mixed quarterly results and a lowered price target.
