Coinbase Q1 Profit Drops Despite Revenue Gains as Expenses Surge 51%

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Coinbase reported a decline in first-quarter profit on Thursday, as a sharp 51% increase in operating expenses outpaced gains in its core revenue streams, leading to a 3% drop in shares during extended trading.

While the cryptocurrency exchange saw total revenue climb to $2.03 billion, up from $1.64 billion a year earlier, it fell short of analysts’ expectations of $2.1 billion, according to data from LSEG.

The company’s adjusted net income dropped to $526.6 million, or $1.94 per share, down from $679.2 million, or $2.53 per share, in the same quarter last year. The decline comes as Coinbase ramps up marketing spending and took a hit on crypto assets held for operations, contributing to its ballooning expense total of $1.3 billion.

Revenue Breakdown:

  • Transaction revenue: Rose 17.3% to $1.26 billion

  • Subscription and services revenue: Jumped 37% to $698.1 million

Despite the solid performance in its transaction and subscription units, the company struggled to maintain profitability amid higher spending and broader market volatility triggered by President Trump’s erratic trade policies, which have unsettled investors and driven caution in riskier assets like cryptocurrencies.

The results come on the same day Coinbase announced a $2.9 billion acquisition of Deribit, a major crypto derivatives exchange, as part of a strategy to expand into the crypto options market and diversify revenue sources beyond spot trading.

The combination of increased costs and geopolitical uncertainty underscores the challenges Coinbase faces in balancing growth investments with margin pressure as it seeks to capitalize on expanding institutional interest in digital assets.

Pinterest Lifts Revenue Forecast as AI Ad Tools and Gen Z Engagement Drive Growth

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Pinterest (PINS) raised its second-quarter revenue outlook on Thursday, citing strong advertiser demand fueled by AI-powered tools and continued engagement from its growing Gen Z user base. The upbeat forecast pushed shares up 16% in after-hours trading, signaling renewed investor confidence despite macroeconomic uncertainty.

The company expects Q2 revenue between $960 million and $980 million, beating analysts’ average forecast of $966.3 million, according to LSEG data. First-quarter revenue came in at $855 million, surpassing expectations of $846.6 million, though adjusted earnings per share of 23 cents missed the consensus estimate of 26 cents.

Pinterest’s strength lies in its “Performance+” automation and AI features, which help advertisers create more targeted, personalized campaigns. This, combined with Pinterest’s focus on direct response ads — such as those driving shopping or app downloads — has positioned the platform as a reliable marketing channel, even amid tightening ad budgets.

Key Growth Drivers:

  • Gen Z users are the platform’s fastest-growing and most engaged demographic.

  • Global monthly active users grew 10% year-over-year, reaching 570 million — well above the expected 564 million.

  • Pinterest is expanding ad partnerships with third parties like Magnite, adding to existing deals with Google and Amazon to aggregate demand from smaller advertisers.

Finance chief Julia Donnelly acknowledged that broader economic pressures — including the end of the U.S. “de minimis” import exemption and ongoing trade tensions — have impacted some advertisers, especially Asia-based e-commerce firms. However, she noted that many of those advertisers are shifting focus to European and other international audiences on Pinterest.

Compared to rivals, Pinterest is faring well. While Meta and Reddit also reported strong Q1 revenues, Snap declined to provide guidance due to market volatility, highlighting Pinterest’s relative resilience.

eMarketer’s Jeremy Goldman summed up the performance, saying,

“The results show Pinterest can sustain momentum without the holiday tailwind.”

As Pinterest sharpens its ad-tech offering and diversifies its advertiser base, the platform appears well-positioned to navigate market headwinds and tap into new growth regions.

U.S. Senate Blocks Stablecoin Bill, Delivering Setback to Crypto Industry

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A bill aimed at establishing a U.S. regulatory framework for stablecoins failed to advance in the Senate on Thursday, marking a significant setback for the crypto industry and stalling hopes for near-term federal legislation governing dollar-pegged digital tokens.

Known as the GENIUS Act, the legislation fell short of the 60 votes needed to proceed to a full Senate vote, securing only 49 votes in favor. The failure comes despite months of lobbying by the crypto sector, which poured over $119 million into supporting pro-crypto candidates during last year’s election cycle and framed stablecoin regulation as a bipartisan issue.

Stablecoins — cryptocurrencies designed to maintain a stable 1:1 peg to the U.S. dollar — are widely used in crypto trading and payments, and their mainstream use has grown rapidly. While the industry had hoped the bill would pass this year, Democratic pushback intensified, particularly in light of former President Trump’s growing involvement in crypto ventures.

Two Republican senators — Josh Hawley and Rand Paul — voted against the bill alongside most Democrats, citing unresolved concerns. Senator Mark Warner, a Democrat who had previously backed the bill in committee, explained his opposition during the vote:

“The work is not yet complete, and I simply cannot in good conscience ask my colleagues to vote for this legislation when the text isn’t finished.”

A group of Democrats who initially supported the measure accused Republicans of refusing to strengthen the bill’s anti-money laundering safeguards and foreign stablecoin oversight, particularly following news that Trump-affiliated World Liberty Financial would launch a stablecoin to support a $2 billion Abu Dhabi-backed investment in Binance.

Senate Majority Leader John Thune expressed frustration on the floor after the vote, blaming Democrats for halting momentum:

“Not every bill that comes to the floor is a final bill… This was a missed opportunity for a bipartisan win.”

With this latest setback, the path forward for stablecoin regulation remains uncertain, and the crypto industry is left grappling with yet another delay in achieving formal legal clarity in the U.S. financial system.