Coinbase Q2: The Business Improved More Than The Headlines Suggest

Coinbase posted Q2 revenue and EPS below consensus but continues to diversify away from retail crypto trading dependence. COIN achieved a 14th consecutive quarter of positive adjusted EBITDA, reduced operating expenses, and reached a record 10.3% global trading volume share. Subscription and Services revenue grew to 48% of net revenue, with stablecoins and USDC economics remaining intact via a renewed Circle agreement. I maintain a Buy rating, as I believe the market currently underappreciates COIN's strategic transformation and resilience amid cyclical crypto headwinds.