Coinbase Global, Inc. (COIN) · Quarterly Report (10-Q) SEC Filing

PART I. FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS Coinbase Global, Inc. Condensed Consolidated Balance Sheets (In thousands, except per share data) (Unaudited) June 30,December 31, 20262025 Assets Current assets: Cash and cash equivalents$8,614,065 $11,285,452 Restricted cash and cash equivalents275,815 334,318 Customer custodial funds4,299,190 5,347,428 Crypto assets held for operations86,469 120,831 Loan receivables1,572,354 1,354,692 Crypto assets held as collateral1,645,051 822,827 Crypto assets borrowed229,076 318,849 Accounts receivable, net333,194 307,119 Marketable investments174,778 309,765 Other current assets259,315 187,164 Total current assets17,489,307 20,388,445 Crypto assets held for investment1,468,395 1,998,871 Strategic investments840,287 622,985 682,446 570,819 4,139,490 4,168,967 Intangible assets, net1,318,869 1,397,794 Other non-current assets521,492 523,951 Total assets$26,460,286 $29,671,832 Liabilities and Shareholders Equity Current liabilities: Customer custodial fund liabilities$4,299,190 $5,347,428 1,269,585 Short-term borrowings539,195 452,105 1,656,821 826,883 Accrued expenses and other current liabilities723,708 805,281 Total current liabilities7,218,914 8,701,282 5,944,232 5,937,034 Other non-current liabilities217,475 240,458 Total liabilities13,380,621 14,878,774 Shareholders equity: Preferred stock, $0.00001 par value; 500,000 shares authorized and zero shares issued and outstanding at each of June 30, 2026 and December 31, 2025 Class A and B common stock, $0.00001 par value; 10,500,000 (Class A 10,000,000, Class B 500,000) shares authorized at June 30, 2026 and December 31, 2025; 263,782 (Class A 222,748, Class B 41,034) shares issued and outstanding at June 30, 2026 and 267,836 (Class A 226,797, Class B 41,039) shares issued and outstanding at December 31, 2025 3 3 Additional paid-in capital7,710,289 8,566,854 Accumulated other comprehensive (loss) income(98,270)4,973 Retained earnings5,467,643 6,221,228 Total shareholders equity13,079,665 14,793,058 Total liabilities and shareholders equity$26,460,286 $29,671,832 The accompanying notes are an integral part of these Condensed Consolidated Financial Statements. 4 Table of Contents Coinbase Global, Inc. Condensed Consolidated Statements of Operations (In thousands, except per share data) (Unaudited) Three Months Ended June 30,Six Months Ended June 30, 2026202520262025$1,154,301 $1,396,513 $2,493,649 $3,333,334 65,767 100,695 139,401 198,169 1,220,068 1,497,208 2,633,050 3,531,503 189,790 245,261 385,649 548,287 472,848 387,322 998,496 742,690 239,843 236,245 506,569 483,528 356,924 353,707 733,018 748,053 31,719 (8,702)66,870 25,663 52,408 52,408 (9,976)308,025 24,949 302,126 1,333,556 1,521,858 2,767,959 2,850,347 (113,488)(24,650)(134,909)681,156 22,516 20,535 45,085 41,046 209,499 (362,053)691,855 234,598 49,908 (1,506,905)(11,733)(1,500,717)(395,411)1,823,773 (860,116)1,906,229 (35,943)394,873 (106,531)411,721 $(359,468)$1,428,900 $(753,585)$1,494,508 $(359,468)$1,428,900 $(753,585)$1,494,508 $(359,468)$1,432,511 $(753,585)$1,501,717 $(1.36)$5.60 $(2.85)$5.87 $(1.36)$5.14 $(2.85)$5.39 263,412255,188 264,128 254,537 263,412278,913 264,128 278,700 Three Months Ended June 30,Six Months Ended June 30, 2026202520262025$(359,468)$1,428,900 $(753,585)$1,494,508 (84,961)41,992 (103,243)50,010 40 (19)(84,961)42,032 (103,243)49,991 $(444,429)$1,470,932 $(856,828)$1,544,499 Accumulated Other Comprehensive Income (Loss)Retained Earnings AmountTotal $3 $7,666,768 $(13,309)$5,827,111 $13,480,573 Common stock issued in connection with equity awards 23,151 23,151 Common stock repurchased (121,271) (121,271) Common stock withheld for net share settlement of equity awards (105,394) (105,394) Stock-based compensation (inclusive of capitalized stock-based compensation) 247,035 247,035 Other comprehensive loss (84,961) (84,961) Net loss (359,468)(359,468) Balance at June 30, 2026$3 $7,710,289 $(98,270)$5,467,643 $13,079,665 $2 $5,483,821 $(42,092)$5,026,509 $10,468,240 Common stock issued in connection with equity awards 48,615 48,615 Common stock withheld for net share settlement of equity awards (101,078) (101,078) Stock-based compensation (inclusive of capitalized stock-based compensation) 208,180 208,180 Other comprehensive income 42,032 42,032 Net income 1,428,900 1,428,900 Balance at June 30, 2025$2 $5,639,538 $(60)$6,455,409 $12,094,889 The accompanying notes are an integral part of these Condensed Consolidated Financial Statements. 7 Table of Contents Coinbase Global, Inc. Condensed Consolidated Statements of Changes in Shareholders' Equity (In thousands) (Unaudited) Accumulated Other Comprehensive Income (Loss)Retained Earnings AmountTotal $3 $8,566,854 $4,973 $6,221,228 $14,793,058 Common stock issued as consideration for business combination 19,386 19,386 Common stock issued in connection with equity awards 32,386 32,386 Common stock repurchased (1,183,505) (1,183,505) Common stock withheld for net share settlement of equity awards (224,319) (224,319) Stock-based compensation (inclusive of capitalized stock-based compensation) 499,487 499,487 Other comprehensive loss (103,243) (103,243) Net loss (753,585)(753,585) Balance at June 30, 2026$3 $7,710,289 $(98,270)$5,467,643 $13,079,665 $2 $5,365,990 $(50,051)$4,960,901 $10,276,842 Common stock issued in connection with equity awards 59,455 59,455 Common stock withheld for net share settlement of equity awards (201,381) (201,381) Stock-based compensation (inclusive of capitalized stock-based compensation) 415,474 415,474 Other comprehensive income 49,991 49,991 Net income 1,494,508 1,494,508 Balance at June 30, 2025$2 $5,639,538 $(60)$6,455,409 $12,094,889 The accompanying notes are an integral part of these Condensed Consolidated Financial Statements. 8 Table of Contents Coinbase Global, Inc. Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited) Six Months Ended June 30, 20262025$(753,585)$1,494,508 132,409 67,234 486,396 386,889 (109,875)399,971 66,870 25,663 691,855 234,598 11,381 (1,475,448)55,689 48,582 (41,799)(125,633)(24,055)(84,762)(59,171)45,910 (76,061)75,260 380,054 1,092,772 (5,862,479)(4,596,581)5,665,796 4,322,454 (166,597)(464,082)33,865 80,781 (251,562)(91,349)153,555 5,735 (73,132)(69,787)(500,554)(812,829)(1,273,013) (1,243,488) (1,026,160)(1,140,867)11,371 109,399 (3,729)(112,650)(224,319)(201,381)500,918 278,162 (345,927)(305,084)31,120 60,560 (3,573,227)(1,311,861)(3,693,727)(1,031,918)(47,265)79,845 16,893,420 15,683,456 $13,152,428 $14,731,383 $8,614,065 $9,367,889 275,815 337,786 4,262,548 5,025,708 $13,152,428 $14,731,383 $1,893,298 $588,999 1,912,389 638,262 2,653,573 1,507,022 1,394,501 1,354,794 2,241,287 1,110,482 2,218,832 1,145,392 166,291 Previously Reported Change in Presentation Change in Principle As Adjusted Changes in operating assets and liabilities$(1,036,250)$ $947,025 $(89,225) Loans originated(955,488) (3,641,093)(4,596,581) Proceeds from repayment of loans588,004 3,734,450 4,322,454 (84,764) (6,585)(91,349) Dispositions of investments5,520 215 5,735 Purchases of crypto assets held for investment(458,728) (5,354)(464,082) Dispositions of crypto assets held for investment62,443 18,338 80,781 Other investing activities, net(1) (73,796) 4,009 (69,787) Customer collateral received370,553 (312,510)51,356 109,399 Return of customer collateral(373,804)312,510 (51,356)(112,650) Proceeds from short-term borrowings 278,162 278,162 Repayments of short-term borrowings (305,084)(305,084) $721,460 Class A common stock of the Company(1) 3,573,092 Total purchase consideration$4,294,552 __________________ (1)Fair value, representing the closing market price of the Company s Class A common stock on the acquisition date. The aggregate purchase consideration includes $150.0 million in cash subject to an indemnity escrow that expires 15 months after the acquisition date. In accordance with ASC 805, Business Combinations ( ASC 805 ), the acquisition was accounted for as a business combination under the acquisition method. The purchase consideration was allocated to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date with the excess recorded as goodwill, as follows (in thousands): Goodwill$2,818,754 Intangible assets1,390,000 Crypto assets held for investment164,263 Deferred tax assets and liabilities, net(132,527) Cash and cash equivalents and restricted cash 112,928 Other assets and liabilities, net(58,866) Net assets acquired$4,294,552 The goodwill is primarily attributed to the assembled workforce as well as the anticipated operational synergies from the integration of Deribit s trading platform with the Company s existing platform. The goodwill is expected to be deductible for U.S. tax purposes. The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition (in thousands, except for years data): Fair ValueUseful Life at Acquisition (in years) Customer relationships$1,059,000 15 Acquired developed technology288,000 6 43,000 8 Total identifiable intangible assets acquired$1,390,000 13 The customer relationships represent the fair value of projected cash flows derived from existing customers of Deribit and were valued using the multi-period excess earnings method. The present value of projected cash flows included significant judgment and assumptions regarding future revenues, attrition rates, and the discount rate. Echo On October 8, 2025, the Company acquired all of the outstanding equity interests of Gm Echo Ltd ( Echo ), an onchain capital raising platform. The Company believes this strategic acquisition will play a key role in its goal to create more accessible, efficient, and transparent capital markets. In accordance with ASC 805, the acquisition was accounted for as a business combination under the acquisition method. The total purchase consideration transferred in the acquisition was $176.0 million, which included $68.0 million in cash and $108.0 million in Class A common stock of the Company. Net assets acquired were $23.7 million, and the excess purchase price of $152.3 million was recorded as goodwill. The goodwill is primarily attributed to the assembled workforce as well as the anticipated operational synergies from the integration of Echo s platform with the Company s existing platform. The goodwill is expected to be deductible for U.S. tax purposes. Other acquisitions During 2026 and 2025, the Company completed other business combinations that were immaterial, both individually and in the aggregate. 5. REVENUE The following table presents revenue disaggregated by type (in thousands): Six Months Ended June 30,202520262025$451,670 $649,908 $1,018,569 $1,745,414 100,073 60,819 235,799 159,707 47,413 53,543 100,613 121,357 599,156 764,270 1,354,981 2,026,478 292,147 308,914 597,582 582,951 83,342 144,535 184,191 341,127 66,128 59,316 133,933 122,402 113,528 119,478 222,962 260,376 555,145 632,243 1,138,668 1,306,856 1,154,301 1,396,513 2,493,649 3,333,334 65,767 100,695 139,401 198,169 65,767 100,695 139,401 198,169 $1,220,068 $1,497,208 $2,633,050 $3,531,503 Six Months Ended June 30, 2026202520262025$1,037,166 $1,291,616 $2,221,567 $2,997,268 182,902 205,592 411,483 534,235 $1,220,068 $1,497,208 $2,633,050 $3,531,503 December 31,2025$1,536,899 $1,340,213 35,455 14,479 $1,572,354 $1,354,692 June 30, 2026 December 31, 2025 Units Cost Basis Fair Value Units Cost Basis Fair Value Fiat and payment stablecoins(1) N/AN/A$11,770 N/AN/A$4,056 Bitcoin22,609 $1,656,622 $1,323,142 8,479 $810,055 $747,697 Ethereum24,965 58,234 39,181 16,041 51,023 47,731 $1,714,856 1,362,323 $861,078 795,428 Total recognized lending collateral $1,374,093 $799,484 __________________ (1)Fiat and payment stablecoin collateral held are recognized within Cash and cash equivalents in the Condensed Consolidated Balance Sheets. Cost basis and units are not required disclosure and are therefore labeled N/A. 14 Table of Contents Coinbase Global, Inc. Notes to Condensed Consolidated Financial Statements (Unaudited) The following table summarizes collateral pledged by borrowers in lending arrangements with the Company, which the Company has not recognized as collateral nor as an obligation to return the collateral (in thousands): June 30, December 31, 20262025 Fiat and payment stablecoins$248,906 $303,983 Crypto assets1,261,656 1,559,458 Total customer collateral not recognized as collateral$1,510,562 $1,863,441 Borrowings and related collateral The following table summarizes the units, cost basis, and fair value of Crypto assets borrowed (in thousands, except units): June 30, 2026 December 31, 2025 Units Cost Basis Fair Value Units Cost Basis Fair Value Bitcoin1,869 $ 153,766 $ 109,362 1,920 $ 173,848 $ 167,989 Ethereum65,685 129,732 103,090 43,536 149,374 129,162 Other crypto assets(1) nm 23,747 16,624 nm 27,145 21,698 Total borrowed $ 307,245 $ 229,076 $ 350,367 $ 318,849 __________________ nm - not meaningful (1)Includes various other crypto asset balances, none of which individually represented more than 5% of the fair value of total Crypto assets borrowed. The following table summarizes the units, cost basis, and fair value of Short-term borrowings (in thousands, except units): June 30, 2026 December 31, 2025 Units Cost Basis Fair Value Units Cost Basis Fair Value Payment stablecoinsN/A N/A $ 274,913 N/A N/A $ 119,923 Bitcoin2,176 $ 172,425 $ 127,323 2,035 $ 183,882 $ 178,022 Ethereum69,848 136,551 109,623 43,941 150,424 130,363 Other crypto assets(1) nm 35,639 27,336 nm 29,399 23,797 Total crypto asset borrowings 344,615 264,282 $ 363,705 332,182 Total short-term borrowings $ 539,195 $ 452,105 __________________ nm - not meaningful (1)Includes various other crypto asset balances, none of which individually represented more than 5% of the fair value of total crypto asset borrowings. As of June 30, 2026 and December 31, 2025, the weighted average annual fees on Short-term borrowings were 3.7% and 3.5%, respectively. The fair value of the Company s corporate assets pledged as collateral against Short-term borrowings, presented in Restricted cash and cash equivalents, consisted of the following (in thousands): June 30, 2026 December 31, 2025 Payment stablecoins$193,846 $236,308 June 30, 2026 December 31, 2025 Units Cost Basis Fair Value Units Cost Basis Fair Value Bitcoin4,794 $ 430,014 $ 280,564 100 $ 8,732 $ 8,750 Ethereum1,379 2,725 2,164 6,286 18,713 18,649 Total recognized derivatives collateral $ 432,739 $ 282,728 $ 27,445 $ 27,399 As of June 30, 2026 and December 31, 2025, the collateral requirements for outstanding derivatives were at least 100% of the derivative notional value. 7. CRYPTO ASSETS HELD FOR OPERATIONS The following table summarizes Crypto assets held for operations (in thousands, except units): June 30, 2026 December 31, 2025 Units Cost Basis Fair Value Units Cost Basis Fair Value Bitcoin553 $48,384 $32,489 487 $48,191 $43,282 Ethereum10,480 18,616 17,381 10,499 27,341 31,174 Solana88,028 7,217 6,476 52,933 7,698 6,624 Other crypto assets(1) nm49,791 30,123 nm 55,068 39,751 Total held for operations $124,008 $86,469 $138,298 $120,831 __________________ nm - not meaningful (1)Includes various other crypto asset balances, none of which individually represented more than 5% of the fair value of total Crypto assets held for operations. 8. ACCOUNTS RECEIVABLE, NET Accounts receivable, net consisted of the following (in thousands): December 31,2025$110,467 $122,936 61,095 54,143 168,446 133,202 340,008 310,281 (6,814)(3,162)$333,194 $307,119 December 31, 2025 Units Cost Basis Fair Value Units Cost Basis Fair Value Bitcoin17,311 $ 1,213,691 $ 1,013,166 15,389 $ 1,079,153 $ 1,346,452 Ethereum150,279 340,602 235,741 151,175 348,975 448,484 Other crypto assets(1) nm 269,121 219,488 nm 323,226 203,935 Total held for investment$ 1,823,414 $ 1,468,395 $ 1,751,354 $ 1,998,871 __________________ nm - not meaningful (1)Includes various other crypto asset balances, none of which individually represented more than 5% of the fair value of total Crypto assets held for investment. As of June 30, 2026, the Company held $128.4 million of Crypto assets held for investment subject to selling restrictions that are time-based and lift between 2026 and 2030. 10. GOODWILL AND INTANGIBLE ASSETS, NET Goodwill The following table reflects the changes in the carrying amount of goodwill (in thousands): Carrying Amount Balance at January 1, 2026 $ 4,168,967 Additions due to acquisitions39,843 Foreign currency translation adjustments(69,320) Balance at June 30, 2026 $ 4,139,490 There was no impairment recognized against goodwill at the beginning or end of the period presented, and no measurement period adjustments during the period presented. Intangible assets, net Intangible assets, net excludes internally developed software and crypto assets, which are presented in Software and equipment, net within Note 13. Condensed Consolidated Balance Sheets Details and in the various crypto assets held line items within the Condensed Consolidated Balance Sheets, respectively. The effects of amortization of Intangible assets, net on the Condensed Consolidated Statements of Operations was as follows (in thousands): Six Months Ended June 30,202520262025$15,356 $1,973 $31,140 $3,697 17,774 35,793 1,714 3,317 3,523 6,698 $34,844 $5,290 $70,456 $10,395 $131,185 2028127,121 2029122,918 2030121,737 2031121,141 Thereafter666,767 Total expected future amortization expense$1,290,869 11. LONG-TERM DEBT As of June 30, 2026 and December 31, 2025, the Company had fixed-rate convertible notes and senior notes with varying maturities for an aggregate carrying amount of $5.9 billion and $7.2 billion, respectively. As of June 30, 2026 and December 31, 2025, the fair value of the Company s convertible notes and senior notes, based on Level 2 valuation inputs, was $5.2 billion and $6.9 billion, respectively. The Company used cash to repay in full, at maturity, $1.3 billion of aggregate principal amount of its 0.50% convertible notes due June 1, 2026 (the 2026 Convertible Notes ). See Note 11. Long-Term Debt to the Consolidated Financial Statements included in the Annual Report for more information regarding the Company s long-term debt. 12. DERIVATIVES During the periods presented, the Company s derivatives were primarily embedded forward contracts to receive or deliver a fixed amount of crypto assets in the future and crypto asset option contracts with customers in the U.S. and internationally, entered into to provide liquidity for global derivatives trading. None were designated as hedging instruments. Impact of derivatives on the Condensed Consolidated Balance Sheets The following table summarizes information on derivative instruments by their location in the Condensed Consolidated Balance Sheets, with amounts representing the portions of the respective line items denominated in crypto assets, as measured in U.S. dollar equivalents (in thousands): Embedded Derivative Host Gross Derivative Assets Gross Derivative Liabilities Aggregate Carrying Value June 30, 2026 Accounts receivable, net$4,998 $24,517 $180 $29,335 Short-term borrowings344,615 123,100 42,767 264,282 Obligation to return collateral2,147,595 507,041 4,497 1,645,051 Accrued expenses and other current liabilities(1) 12,148 23 12,125 Total fair value of derivatives$654,681 $47,444 December 31, 2025 Accounts receivable, net$9,943 $22,025 $4,399 $27,569 363,705 32,446 923 332,182 Obligation to return collateral888,523 126,962 61,266 822,827 Accrued expenses and other current liabilities6,897 2 6,899 Total fair value of derivatives$181,433 $66,590 __________________ (1) Includes immaterial gross assets and liabilities of equal amounts, representing the fair values of crypto asset option contracts. Notional amounts, which are not recorded, totaled $282.7 million for each of the asset and liability, at June 30, 2026. Derivative notional amounts are reference amounts from which the fair value of derivatives are derived and do not represent a complete measure of the risk profile of the Company s exposure to these derivative instruments. 18 Table of Contents Coinbase Global, Inc. Notes to Condensed Consolidated Financial Statements (Unaudited) Impact of derivatives on the Condensed Consolidated Statements of Operations The impacts of gains (losses) on derivative instruments recognized in the Condensed Consolidated Statements of Operations were as follows (in thousands): Six Months Ended June 30, 202520262025 Short-term borrowings(1) 41,297 $(69,671)$48,810 $(17,703) Obligation to return collateral(1) (183,665)436,848 (31,559) Other(2) 14,056 16,129 (1,193) Total349,275 $(239,280)$501,787 $(50,455) __________________ (1)Changes in fair value are recognized in Transaction expense in the Condensed Consolidated Statements of Operations. The impact of changes in fair value of Crypto asset borrowings and Obligation to return collateral derivatives is naturally offset, at least in part, by the impact of changes in fair value of the associated naturally offsetting positions, which are also recognized in Transaction expense. (2)Changes in fair value, including immaterial changes resulting from holding crypto asset option contracts, which have an equal and offsetting impact, are recognized in Other operating (income) expense, net or Other expense (income), net in the Condensed Consolidated Statements of Operations depending on the nature of the derivative. 19 Table of Contents Coinbase Global, Inc. Notes to Condensed Consolidated Financial Statements (Unaudited) 13. CONDENSED CONSOLIDATED BALANCE SHEETS DETAILS The following table presents certain other details of the Condensed Consolidated Balance Sheets (in thousands): June 30,December 31, 2026 2025 $117,307 $94,886 88,014 63,726 53,994 28,552 $259,315 $187,164 $254,122 $264,573 149,879 141,631 68,140 62,233 49,351 55,514 $521,492 $523,951 $196,337 $186,927 260,383 238,308 72,067 117,605 53,009 65,982 141,912 196,459 $723,708 $805,281 $184,863 $172,735 32,612 67,723 $217,475 $240,458 December 31, 2025Level 2Level 2$3,095,370 $ 6,088,290 $ 1,705 1,864,696 86,469 35,455 14,479 1,645,051 229,076 157,543 17,235 11,903 1,468,395 654,681 181,433 $8,548,305 $707,371 13,042,983 $207,815 $ $47,444 $66,590 Options OutstandingExercise Price Per ShareRemaining Contractual Life (Years)Aggregate Intrinsic Value Balance at January 1, 202619,700 $25.58 4.3$3,950,983 Exercised(1,070)10.87 Forfeited and cancelled(13)136.20 Balance at June 30, 202618,617 $26.35 3.9$2,253,320 Vested and exercisable at June 30, 202614,937 $27.06 3.9$1,801,626 Other awards A summary of restricted stock units and performance restricted stock units activity is as follows (in thousands, except per share data): Restricted Stock Units Performance Restricted Stock Units Number of SharesFair Value(1) Number of SharesFair Value(1) Balance at January 1, 20262,145 $247.04 643 $55.42 Granted5,956 165.15 426 156.92 Vested(2,140)203.75 (643)55.70 Forfeited and cancelled(764)174.32 Balance at June 30, 20265,197 $181.70 426 $156.92 __________________ (1)Represents the weighted-average grant date fair value per share. Stock-based compensation The following are the effects of stock-based compensation on the Condensed Consolidated Statements of Operations and Condensed Consolidated Balance Sheets (in thousands): Three Months Ended June 30,Six Months Ended June 30, 2026202520262025 Statements of Operations Technology and development$152,917 $117,240 $313,558 $225,332 Sales and marketing12,601 14,533 27,412 29,438 General and administrative72,823 64,387 145,426 132,119 Total stock-based compensation expense$238,341 $196,160 $486,396 $386,889 Balance Sheets Software and equipment, net(1) $4,707 $12,020 $9,105 $28,585 _______________ (1)Represents capitalized stock-based compensation that was recorded to Software and equipment, net during the periods presented. See Note 13. Condensed Consolidated Balance Sheets Details for additional details. As of June 30, 2026, there was total unrecognized compensation cost of $815.4 million and $130.1 million related to unvested restricted stock units (excluding performance restricted stock units) and restricted stock awards, respectively, which is expected to be recognized over a weighted-average of 1.4 23 Table of Contents Coinbase Global, Inc. Notes to Condensed Consolidated Financial Statements (Unaudited) years and 3.1 years, respectively. As of June 30, 2026, there was unrecognized compensation cost related to performance restricted stock units subject to market conditions of $29.6 million, which is expected to be recognized over a weighted-average period of 2.3 years. Unrecognized compensation cost for all other stock-based compensation awards was immaterial as of June 30, 2026. 17. OTHER CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS DETAILS Disaggregation of relevant expense captions, as defined in ASU 2024-03, Expense Disaggregation Disclosures, consisted of the following (in thousands): Three Months Ended June 30,Six Months Ended June 30, 2026202520262025 Technology and development Employee-related(1) $302,527 $245,571 $650,650 $477,919 Website hosting and infrastructure89,301 76,336 179,940 143,583 Amortization, depreciation, and impairment(2) 47,078 34,585 94,991 66,597 Other(3) 33,942 30,830 72,915 54,591 Total technology and development $472,848 $387,322 $998,496 $742,690 Sales and marketing USDC rewards$119,108 $102,521 $232,535 $202,555 Marketing programs 59,690 90,022 143,597 194,992 Employee-related(1) 29,787 32,319 69,165 65,775 Other(4) 31,258 11,383 61,272 20,206 Total sales and marketing $239,843 $236,245 $506,569 $483,528 General and administrative Employee-related(1) $171,876 $147,752 $365,237 $310,889 Professional services54,934 71,010 104,558 129,186 Customer support(5) 28,053 54,764 61,317 125,219 Other(6) 102,061 80,181 201,906 182,759 Total general and administrative $356,924 $353,707 $733,018 $748,053 _______________ (1)Represents employee compensation, including transactions entered into for the benefit of employees such as health and wellness benefits. (2)Comprises amortization, depreciation, and intangible asset impairment expenses, none of which are individually material. (3) Comprises primarily costs of contract resources, consulting, and facilities. (4) Comprises primarily amortization and costs of contract resources, consulting, and travel, as well as depreciation expenses, none of which are individually material. (5) Excludes employee-related and professional services expenses. (6) Comprises primarily costs of taxes, licenses, and fees, contract resources, settlement costs, civic contributions, and travel. Also includes amortization, depreciation, and intangible asset impairments, none of which are individually material. 24 Table of Contents Coinbase Global, Inc. Notes to Condensed Consolidated Financial Statements (Unaudited) Other expense (income), net consisted of the following (in thousands): Six Months Ended June 30, 2026202520262025$58,178 $(1,472,121)$11,381 $(1,475,448)(8,270)(34,784)(23,114)(25,269)$49,908 $(1,506,905)$(11,733)$(1,500,717) 20262025 Cash paid during the period for income taxes, net of refunds$45,143 $131,310 As of June 30, 2026, the Company had a net deferred tax asset balance of $682.4 million, compared to $570.8 million as of December 31, 2025. As of each reporting date, management considers new evidence, both positive and negative, that could affect its view of the future realization of deferred tax assets. Management determined that there is sufficient positive evidence to conclude that it is more likely than not that the Company s net deferred tax asset will be fully realized. 25 Table of Contents Coinbase Global, Inc. Notes to Condensed Consolidated Financial Statements (Unaudited) 19. NET (LOSS) INCOME PER SHARE The computation of Net (loss) income per share, including the weighted-average shares outstanding ( WASO ) used in the computation, is as follows (in thousands, except per share amounts): Six Months Ended June 30, 2026202520262025$(359,468)$1,428,900 $(753,585)$1,494,508 $(359,468)$1,432,511 $(753,585)$1,501,717 263,412 255,188 264,128 254,537 15,299 15,561 7,229 7,229 665 807 446 413 86 153 263,412 278,913 264,128 278,700 $(1.36)$5.60 $(2.85)$5.87 $(1.36)$5.14 $(2.85)$5.39 Six Months Ended June 30, 202620252026202524,637 7,383 24,637 7,383 13,233 13,778 37,870 7,383 38,415 7,383 ChangeSix Months Ended June 30,Change20262025$%20262025$%$451,670 $649,908 $(198,238)(31)$1,018,569 $1,745,414 $(726,845)(42)100,073 60,819 39,254 65 235,799 159,707 76,092 48 47,413 53,543 (6,130)(11)100,613 121,357 (20,744)(17)$599,156 $764,270 $(165,114)(22)$1,354,981 $2,026,478 $(671,497)(33)52 55 54 61 ChangeSix Months Ended June 30,Change 20262025$%20262025$%$292,147 $308,914 $(16,767)(5)$597,582 $582,951 $14,631 3 83,342 144,535 (61,193)(42)184,191 341,127 (156,936)(46)66,128 59,316 6,812 11 133,933 122,402 11,531 9 113,528 119,478 (5,950)(5)222,962 260,376 (37,414)(14)$555,145 $632,243 $(77,098)(12)$1,138,668 $1,306,856 $(168,188)(13)48 45 46 39 ChangeSix Months Ended June 30,Change (in thousands, except %) 20262025$%20262025$% Corporate interest and other income(1) $65,767 $100,695 $(34,928)(35)$139,401 $198,169 $(58,768)(30) Total other revenue$65,767 $100,695 $(34,928)(35)$139,401 $198,169 $(58,768)(30) ____________________________________ (1) During the first quarter of 2026, we revised the presentation of revenue earned on corporate payment stablecoin balances, now presenting the amounts in Corporate interest and other income rather than in Stablecoin revenue. Prior period amounts have been reclassified to conform to current period presentation. For information on the reclassified amounts, please see Note 2. Summary of Significant Accounting Policies and Note 5. Revenue of the Notes to our Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q. Corporate interest and other income decreased for the three and six months ended June 30, 2026 as compared to 2025, reflecting a 73 and 77 basis point decline in average interest rates earned. Operating expenses Certain prior period amounts have been reclassified to conform to the current period presentation. Transaction expense ChangeSix Months Ended June 30,Change (in thousands, except %) 20262025$%20262025$% Blockchain rewards fees$53,102 $89,157 $(36,055)(40)$117,235 $209,178 $(91,943)(44) Payment processing and account verification42,349 41,332 1,017 2 82,524 105,977 (23,453)(22) Transaction rebates and commissions36,763 86,862 (50,099)(58)65,789 146,447 (80,658)(55) Transaction reversal losses20,057 20,855 (798)(4)54,056 67,699 (13,643)(20) Other37,519 7,055 30,464 432 66,045 18,986 47,059 248 Total transaction expense$189,790 $245,261 $(55,471)(23)$385,649 $548,287 $(162,638)(30) % of net revenue16 18 15 16 Transaction expense decreased for the three and six months ended June 30, 2026 as compared to 2025, largely due to: lower blockchain rewards fees, which moved with blockchain rewards revenue; a decrease in transaction rebates and commissions, primarily those earned by institutional customers providing liquidity on our international exchange, as we tapered incentive offerings; offset in part by an increase in other, largely due to exchange fees associated with our prediction markets business. There were no material changes to note within the other categories in the table above. 33 Table of Contents Technology and development ChangeSix Months Ended June 30,Change (in thousands, except %) 20262025$%20262025$% Employee-related$302,527 $245,571 $56,956 23 $650,650 $477,919 $172,731 36 Website hosting and infrastructure89,301 76,336 12,965 17 179,940 143,583 36,357 25 Amortization, depreciation, and impairment47,078 34,585 12,493 36 94,991 66,597 28,394 43 Other33,942 30,830 3,112 10 72,915 54,591 18,324 34 Total technology and development$472,848 $387,322 $85,526 22 $998,496 $742,690 $255,806 34 % of net revenue41 28 40 22 Technology and development expenses increased for the three and six months ended June 30, 2026 as compared to 2025, reflecting higher employee-related expenses. This increase was driven by 3% and 13% higher average headcount supporting product growth, tempered during the second quarter of 2026 by the Restructuring, as well as lower internally developed technology costs capitalized. There were no material changes to note within the other categories in the table above. Sales and marketing Three Months Ended June 30,ChangeSix Months Ended June 30,Change (in thousands, except %) 20262025$%20262025$% USDC rewards$119,108 $102,521 $16,587 16 $232,535 $202,555 $29,980 15 Marketing programs59,690 90,022 (30,332)(34)143,597 194,992 (51,395)(26) Employee-related29,787 32,319 (2,532)(8)69,165 65,775 3,390 5 31,258 11,383 19,875 175 61,272 20,206 41,066 203 Total sales and marketing$239,843 $236,245 $3,598 2 $506,569 $483,528 $23,041 5 % of net revenue21 17 20 15 Sales and marketing expenses increased for the three and six months ended June 30, 2026 as compared to 2025, reflecting: a $45.4 million and $103.7 million increase in USDC rewards driven by growth in average customer USDC balances held in Coinbase products as we continue to integrate USDC across our products, offset in part by a reduction in the rewards rate; a decrease in marketing program expenses, largely due to a $21.3 million and $65.2 million decrease in digital advertising spend as a response to softer market conditions; and an increase in other, primarily due to amortization of intangible assets acquired in the purchase of Deribit in 2025. There were no material changes to note within employee-related. 34 Table of Contents General and administrative Three Months Ended June 30,ChangeSix Months Ended June 30,Change (in thousands, except %) 20262025$%20262025$% Employee-related$171,876 $147,752 $24,124 16 $365,237 $310,889 $54,348 17 Professional services54,934 71,010 (16,076)(23)104,558 129,186 (24,628)(19) Customer support(1) 28,053 54,764 (26,711)(49)61,317 125,219 (63,902)(51) Other102,061 80,181 21,880 27 201,906 182,759 19,147 10 Total general and administrative$356,924 $353,707 $3,217 1 $733,018 $748,053 $(15,035)(2) % of net revenue31 25 29 22 ____________________________________ (1)Excludes employee-related and professional services expenses. General and administrative expenses changed for the three and six months ended June 30, 2026 as compared to 2025, reflecting: an increase in employee-related expenses, primarily due to higher average headcount reflecting, in part, the shift of certain customer support roles from outsourced resources to employees, tempered during the second quarter of 2026 as a result of the Restructuring; and a decrease in customer support costs, primarily due to lower transaction volume and fewer resources required after certain regulatory projects were completed in the prior year, as well as reflecting the shift of certain roles to employees. There were no material changes to note within the other categories in the table above. Losses (gains) on crypto assets held for operations, net Three Months Ended June 30,ChangeSix Months Ended June 30,Change (in thousands, except %) 20262025$%20262025$% Losses (gains) on crypto assets held for operations, net$31,719 $(8,702)$40,421 (465)$66,870 $25,663 $41,207 161 Changes in losses (gains) on crypto assets held for operations, net resulted primarily from holding these assets during a period of declining crypto asset prices, primarily Bitcoin. These changes were expanded in 2026 with recent customer reward offerings. Restructuring For both the three and six months ended June 30, 2026, restructuring expenses were $52.4 million, related to the Restructuring. There were no restructuring expenses for the three and six months ended June 30, 2025. See Note 3. Restructuring of the Notes to our Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for additional details. Other operating (income) expense, net ChangeSix Months Ended June 30,Change (in thousands, except %) 20262025$%20262025$% Platform-related incidents, net$(5,893)$306,654 $(312,547)(102)$30,780 $307,374 $(276,594)(90) Other(4,083)1,371 (5,454)(398)(5,831)(5,248)(583)11 Total other operating (income) expense, net $(9,976)$308,025 $(318,001)(103)$24,949 $302,126 $(277,177)(92) 35 Table of Contents Other operating (income) expense, net decreased for the three and six months ended June 30, 2026 as compared to 2025, primarily due to losses incurred in 2025, directly associated with the incident announced on the Current Report on Form 8-K we filed with the SEC on May 15, 2025 (the Data Theft Incident ), comprising voluntary customer reimbursements and direct legal costs, net of recoveries. Interest expense ChangeSix Months Ended June 30,Change (in thousands, except %) 20262025$%20262025$% Interest expense$22,516 $20,535 $1,981 10 $45,085 $41,046 $4,039 10 There were no material changes to note within interest expense. Losses (gains) on crypto assets held for investment, net Three Months Ended June 30,ChangeSix Months Ended June 30,Change (in thousands, except %) 20262025$%20262025$% Losses (gains) on crypto assets held for investment, net$209,499 $(362,053)$571,552 (158)$691,855 $234,598 $457,257 195 Losses (gains) on crypto assets held for investment, net changed for the three and six months ended June 30, 2026 as compared to 2025, primarily due to fair value remeasurement of these assets, mainly Bitcoin and Ethereum. The impact of this change in fair value expanded in the current period as we actively invested in Bitcoin. Other expense (income), net ChangeSix Months Ended June 30,Change (in thousands, except %) 20262025$%20262025$% Losses (gains) on investments, net$58,178 $(1,472,121)$1,530,299 (104)$11,381 $(1,475,448)$1,486,829 (101) (8,270)(34,784)26,514 (76)(23,114)(25,269)2,155 (9) Other expense (income), net$49,908 $(1,506,905)$1,556,813 (103)$(11,733)$(1,500,717)$1,488,984 (99) Losses (gains) on investments, net changed for the three and six months ended June 30, 2026 as compared to 2025, primarily due to the fair value remeasurement of our investment in Circle Internet Group, Inc. ( Circle ) during the second quarter of 2025, following its initial public offering. Current period net losses reflect revaluation, offset in part by gains on the sale of a portion of our investment in Circle during the first quarter of 2026. There were no material changes to note within other. (Benefit from) provision for income taxes ChangeSix Months Ended June 30,Change (in thousands, except %) 20262025$%20262025$% (Benefit from) provision for income taxes$(35,943)$394,873 $(430,816)(109)$(106,531)$411,721 $(518,252)(126) For the periods presented, the change in (benefit from) provision for income taxes was primarily due to lower pre-tax income, partially offset by lower tax benefits related to stock-based compensation and a valuation allowance related to realized and unrealized capital losses. 36 Table of Contents Non-GAAP and Other Measures Adjusted EBITDA In addition to our results determined in accordance with GAAP, we believe Adjusted EBITDA, a non-GAAP financial performance measure, is useful information to help investors evaluate our operating performance because it: enables investors to compare this measure and component adjustments to similar information provided by peer companies and our past financial performance; provides additional company-specific adjustments for certain items that may be included in income from operations but that we do not consider to be normal, recurring, operating expenses (or income) necessary to operate our business given our operations, revenue generating activities, business strategy, industry, and regulatory environment; and provides investors with visibility to a measure management uses to evaluate our ongoing operations and for internal planning and forecasting purposes. For example: We believe it is useful to exclude certain non-cash expenses, such as depreciation and amortization and stock-based compensation, from Adjusted EBITDA because the amounts of such expenses can vary significantly from period to period and may not directly correlate to the underlying performance of our business operations. We believe it is useful to exclude certain items that we do not consider to be normal, recurring, cash operating expenses and therefore, not reflective of our ongoing business operations. For example, we exclude: (i) other expense (income), net, as the income and expenses recognized in this line item are not part of our core operating activities and are considered non-operating activities under GAAP, (ii) gains and losses on crypto assets held for investment because such investments are considered primarily long-term holdings, (iii) losses, net of recoveries, directly related to the Data Theft Incident, including voluntary customer reimbursements, direct legal costs, and reward payments, if any, in connection with the threat actor s arrest and conviction, and (iv) costs of the Restructuring, as these costs are associated with discrete organizational changes and are not reflective of our core, ongoing business operations. We do not plan on engaging in regular trading of crypto assets, and, as an operating company, our investing activities in crypto are not part of our revenue generating activities, which are primarily based on transactions on our platform and the sales of subscriptions and services. We believe Adjusted EBITDA is useful to measure a company s operating performance without regard to items such as stock-based compensation expense, depreciation and amortization expense, interest expense, other expense (income), net, and (benefit from) provision for income taxes that can vary substantially from company to company depending upon their financing, capital structures, and the method by which assets were acquired. Limitations of Adjusted EBITDA We believe that Adjusted EBITDA may be helpful to investors for the reasons noted above. However, Adjusted EBITDA is presented for supplemental informational purposes only, has limitations as an analytical tool, and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. There are a number of limitations related to Adjusted EBITDA rather than net (loss) income, which is the nearest GAAP equivalent of Adjusted EBITDA. Some of these limitations are that Adjusted EBITDA excludes: (benefit from) provision for income taxes; interest expense, or the cash requirements necessary to service interest or principal payments on our debt, which reduces cash available to us; depreciation and amortization expense and, although these are non-cash expenses, the assets being depreciated and amortized may have to be replaced in the future; 37 Table of Contents stock-based compensation expense, which has been, and will continue to be for the foreseeable future, a significant recurring expense for our business and an important part of our compensation strategy; losses directly related to the Data Theft Incident, net of recoveries; net gains or losses on our crypto assets held for investment; the impact of the Restructuring, which is not related to normal operations but impacted our results in 2026; and other expense (income), net, which represents net gains or losses on investments and other financial instruments, and other non-operating income and expense activity. In addition, other companies, including companies in our industry, may calculate Adjusted EBITDA differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our disclosure of Adjusted EBITDA as a tool for comparison. A reconciliation is provided below for Adjusted EBITDA to net (loss) income, the most directly comparable financial measure stated in accordance with GAAP. Investors are encouraged to review the related GAAP financial measure and the reconciliation of Adjusted EBITDA to net (loss) income, and not to rely on any single financial measure to evaluate our business. The following table provides a reconciliation of net (loss) income to Adjusted EBITDA (in thousands): Three Months Ended June 30,Six Months Ended June 30, 2026202520262025 Net (loss) income$(359,468)$1,428,900 $(753,585) $1,494,508 Adjusted to exclude the following: (Benefit from) provision for income taxes(35,943)394,873 (106,531)411,721 Interest expense22,516 20,535 45,085 41,046 Depreciation and amortization64,403 33,901 132,409 67,234 Stock-based compensation expense238,341 196,160 486,396 386,889 Data Theft Incident (recoveries) losses, net(33,854)306,654 (25,244)306,654 Losses (gains) on crypto assets held for investment, net209,499 (362,053)691,855 234,598 Restructuring52,408 52,408 Other expense (income), net(1) 49,908 (1,506,905)(11,733)(1,500,717) Adjusted EBITDA$207,810 $512,065 $511,060 $1,441,933 __________________ (1)See Note 17. Other Condensed Consolidated Statements of Operations Details of the Notes to our Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for additional details. Assets on Platform We define Assets on Platform ( AOP ) as the total U.S. dollar equivalent value of crypto assets and payment stablecoins held or managed on behalf of customers in digital wallets on our platform, including our custody services but excluding assets for which the customer holds full or partial keys, calculated based on the market price on the date of measurement. AOP demonstrates the scale of balances held across our suite of products and services, the trust customers place in us to securely store their assets, and the underlying growth of the onchain economy. AOP also represents a monetization opportunity through our products and services, including from trading and the adoption and use of payment stablecoins, staking, custody, and institutional financing, when customers use these assets to engage with these products and services. 38 Table of Contents The following table sets forth the value of AOP by asset (in millions, except percentages): June 30, 2026June 30, 2025Value Change Units Value UnitsValue % Bitcoin2.9 $170,800 2.8 $300,641 (43) Ethereum18.9 29,714 16.3 40,530 (27) USDCN/A8,874 N/A7,485 19 Other(1) nm36,478 nm76,337 (52) Total$245,866 $424,993 (42) __________________ nm - not meaningful (1)Includes various other crypto asset and payment stablecoin balances, none of which individually represented more than 5% of total AOP. Monthly Transacting Users We define a MTU as a consumer who actively or passively transacts in one or more products on our platform at least once during the rolling 28-day period ending on the date of measurement. MTUs engage in transactions that generate transaction revenue or subscription and services revenue. Revenue-generating transactions include active transactions, such as buying or selling crypto assets or passive transactions such as earning staking rewards and USDC rewards. MTUs also engage in transactions that are non-revenue generating, such as consumers sending and receiving crypto assets between wallets and off-platform accounts on a non-expedited basis. MTUs may overstate the number of unique consumers due to differences in product architecture or user behavior. MTUs for the three month period represent quarterly MTUs, which are calculated as the average of each month s MTUs in each respective quarter. MTUs for the six month period are calculated as the average of the quarterly MTUs within the period. Liquidity and Capital Resources There have been no material changes to our liquidity and capital resources from those presented in the Annual Report, other than those described below. We continue to believe our existing cash, cash equivalents, and marketable investments, which totaled $8.8 billion as of June 30, 2026, will be sufficient in both the short and long term to meet our requirements and plans for cash, including meeting our working capital and capital expenditure requirements. Our ability to meet these requirements and plans for cash will depend on many factors, including market acceptance of crypto assets and blockchain technology, our growth, our ability to attract and retain customers on our platform, the continuing market acceptance of our products and services, the introduction of new subscription products and services on our platform, expansion of sales and marketing activities, and overall economic conditions. We anticipate satisfying both our short-term and long-term cash requirements with our existing cash and cash equivalents and with future cash flows from operations, future sales of marketable investments, and potential future equity or debt financing. The sale of additional equity would result in additional dilution to our shareholders. The incurrence of additional debt financing would result in debt service obligations, and the instruments governing such debt could provide for operating and financing covenants that restrict our operations. Primary commitments Long-term debt and other contractual obligations We used cash to repay in full at maturity the $1.3 billion aggregate principal amount of our 0.50% convertible notes due June 1, 2026. As of June 30, 2026, our outstanding long-term debt consisted of convertible notes and senior notes with an aggregate principal amount of $6.0 billion, maturing between 39 Table of Contents 2028 and 2032. See Note 11. Long-Term Debt of the Notes to our Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for additional details. Our other contractual obligations decreased materially from those as of December 31, 2025, primarily due to the fulfillment of a strategic equity investment commitment. See Note 20. Commitments and Contingencies of the Notes to our Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for additional details. See Notes 13. Condensed Consolidated Balance Sheets Details and 18. Income Taxes of the Notes to our Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for additional details relating to our short- and long-term material cash requirements as of June 30, 2026. Short-term borrowings As of June 30, 2026, we held short-term borrowings of $539.2 million, denominated in crypto assets and payment stablecoins, which we use to facilitate institutional financing. See Note 6. Collateralized Arrangements and Financing of the Notes to our Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for additional details. Repurchase program As of June 30, 2026, our board of directors had authorized an aggregate $4.0 billion to repurchase, without expiration, our outstanding Class A common stock and long-term debt (the Repurchase Program ). As of June 30, 2026, approximately $2.0 billion remained available, and no long-term debt has been repurchased under the Repurchase Program. See Issuer Purchases of Equity Securities included in Part II, Item 2 of this Quarterly Report on Form 10-Q for additional details. Other resources and commitments Crypto assets We hold and use crypto assets for various purposes. Crypto assets held for operations are received in the ordinary course of business and are converted to cash or used to fulfill expenses, primarily blockchain rewards, nearly immediately. In order to facilitate institutional financing, we hold crypto assets we borrow, as well as crypto assets customers pledge as collateral against certain of our loans to them. We do not use these assets as a source of liquidity otherwise. Crypto assets held for investment are primarily long-term holdings and in certain cases fulfill capital requirements set by regulators (see also Capital requirements below). We do not plan to engage in regular trading of these crypto assets but may purchase additional crypto assets for investment as a buy and hold strategy. In case of a liquidity stress event, or for other episodic purposes, which may necessitate the use of these assets, we may change our policy and sell crypto assets held for investment to generate liquidity. During times of instability in the crypto assets market, we may not be able to sell our crypto assets at reasonable prices or at all. Our crypto assets held are considered less liquid than our cash and cash equivalents and may not be able to serve as a source of liquidity for us to the same extent as cash and cash equivalents. As of June 30, 2026, we held the following crypto assets: $86.5 million held for operations, $1.6 billion held as collateral, $229.1 million that were borrowed, and $1.5 billion held for investment. Customer assets and liabilities Recognized customer assets and liabilities comprise customer custodial funds and corresponding customer custodial liabilities that represent our obligation to return these assets to the customers. We also securely store additional customer AOP that we do not recognize in our Condensed Consolidated Balance Sheets. We do not use customer assets as collateral for any loan, margin, rehypothecation, or other similar activities, without the customer s consent. 40 Table of Contents Our business model does not expose us to liquidity risk if we have excessive redemptions or withdrawals from customers. As of June 30, 2026, we have not experienced excessive redemptions or withdrawals, or prolonged suspended redemptions or withdrawals, of crypto assets to date. See the section titled Risk Factors Depositing and withdrawing crypto assets into and from our platform involve risks, which could result in loss of customer assets, customer disputes and other liabilities, which could adversely affect our business, operating results, and financial condition included in Part I, Item 1A of our Annual Report for further information. Cash flows The following table summarizes our Condensed Consolidated Statements of Cash Flows (in thousands): 20262025$380,054 $1,092,772 (500,554)(812,829)(3,573,227)(1,311,861)$(3,693,727)$(1,031,918)$(1,011,102)$(1,002,312)Net Capital Required Net Capital(1) Capital Surplus CB Inc.$ 2,066 $ 988 $ 1,078 CCTC510 184 326 Other(2) 1,007 64 943 __________________ (1)Depending on the agreement between the subsidiary and the regulator, may include corporate holdings of cash and cash equivalents, Bitcoin, and Ethereum. Due to the volatility of crypto assets, Net Capital and Required Net Capital can fluctuate. (2)Includes subsidiaries that are subject to requirements from regulators that allow for the intermediation of customer orders in derivatives markets or the operation of a regulated marketplace for the trading of such contracts. Critical Accounting Estimates Our Financial Statements and the related notes included elsewhere in this Quarterly Report on Form 10-Q are prepared in accordance with GAAP. The preparation of our Financial Statements also requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, costs, and expenses and related disclosures. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results could differ significantly from our estimates. To the extent that there are differences between our estimates and actual results, our future financial statement presentation, financial condition, operating results, and cash flows will be affected. There have been no material changes to our critical accounting estimates as compared to the critical accounting estimates disclosed in the Annual Report. Recent accounting pronouncements See Note 2. Summary of Significant Accounting Policies Recent accounting pronouncements of the Notes to our Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for a discussion about new accounting pronouncements adopted and not yet adopted as of the date of this report. ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK Market risk is the risk to our Financial Statements associated with the effect of changes in market factors, including risks associated with interest rates, foreign currency, derivatives, marketable and strategic investments, and crypto assets. These assets and liabilities are held for purposes other than trading, except for our marketable investments, which are available for trading. There have been no material changes to our market risk exposures from the information presented in Part II, Item 7A. Quantitative and Qualitative Disclosures About Market Risk, in the Annual Report except for our market risk exposure on our crypto assets held for investment. Though the nature of this exposure and the overall implied volatility of the crypto assets underlying this exposure have not changed since December 31, 2025, the number of units we hold and the price of the assets have changed, resulting in a material change in the output of our sensitivity analysis. 42 Table of Contents Crypto assets held for investment are primarily held long term, and historically, we have not attempted to reduce our market risk exposure associated with these crypto assets. Crypto asset prices have been volatile, as demonstrated by the one-year historical volatility of Bitcoin and Ethereum of approximately 50% implied from the annualized standard deviation of daily price returns observed in the past 24 months. A hypothetical 50% increase or decrease in crypto asset prices as of June 30, 2026 and December 31, 2025 would result in an $734.2 million and $1.0 billion impact, respectively, to the value of our Crypto assets held for investment and would have been recognized as a gain or loss in Losses on crypto assets held for investment, net in our Condensed Consolidated Statements of Operations. The decrease in the hypothetical gains or losses since December 31, 2025 primarily reflects a decrease in the prices of crypto assets held for investment. ITEM 4. CONTROLS AND PROCEDURES Evaluation of Disclosure Controls and Procedures Our disclosure controls and procedures are designed to ensure that information we are required to disclose in reports that we file or submit under the Securities Exchange Act of 1934, as amended (the Exchange Act ), is recorded, processed, summarized, and reported within the time periods specified in SEC rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. Our management, with the participation and supervision of our Chief Executive Officer (our principal executive officer) and our Chief Financial Officer (our principal financial officer), has evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of June 30, 2026. Based on such evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that as of June 30, 2026, our disclosure controls and procedures were, in design and operation, effective at a reasonable assurance level. Changes in Internal Controls Over Financial Reporting There were no changes to our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the most recently completed fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. Inherent Limitations on the Effectiveness of Controls The effectiveness of any system of internal control over financial reporting, including ours, is subject to inherent limitations, including the exercise of judgment in designing, implementing, operating, and evaluating the controls and procedures, and the inability to eliminate misconduct completely. Accordingly, in designing and evaluating the disclosure controls and procedures, management recognizes that any system of internal control over financial reporting, including ours, no matter how well designed and operated, can only provide reasonable, not absolute assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints and that management is required to apply its judgment in evaluating the benefits of possible controls and procedures relative to their costs. Moreover, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. We intend to continue to monitor and upgrade our internal controls as necessary or appropriate for our business but cannot assure you that such improvements will be sufficient to provide us with effective internal control over financial reporting. 43 Table of Contents PART II. OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS For a description of material legal proceedings in which we are involved, see Note 20. Commitments and Contingencies of the Notes to our Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q, which is incorporated herein by reference. We are not presently a party to any other legal or regulatory proceedings that in the opinion of our management, if determined adversely to us, would individually or taken together have a material adverse effect on our business, operating results, financial condition, or cash flows. However, we are subject to regulatory oversight by numerous state, federal, and foreign regulators and we are and we may become subject to various legal proceedings, inquiries, investigations, and demand letters that arise in the course of our business. For example, we have received investigative subpoenas and other inquiries from various state agencies and attorneys general for documents and information pertaining to our business practices and policies, customer complaints, asset launches, certain ongoing litigation, and certain transfers of crypto assets. In addition, we have received investigative subpoenas and demand letters from various regulators for documents and information, including about certain customer programs, operations, and existing and intended future products, including our processes for listing assets, the classification of certain listed assets, our staking programs, and our stablecoin and yield-generating products. We intend to cooperate fully with such investigations. These examples are not exhaustive. ITEM 1A. RISK FACTORS There have been no material changes to the risk factors disclosed in Part I, Item 1A. Risk Factors of our Annual Report on Form 10-K for the year ended December 31, 2025 (the Annual Report ). You should carefully consider the risks and uncertainties described in the Annual Report, together with all of the other information in this Quarterly Report on Form 10-Q, including the section titled Management s Discussion and Analysis of Financial Condition and Results of Operations and the Financial Statements and related notes. The risks and uncertainties described in the Annual Report are not the only ones we face. Additional risks and uncertainties that we are unaware of or that we deem immaterial may also become important factors that adversely affect our business. If any such risks occur, our business, operating results, financial condition, and future prospects could be materially and adversely affected. ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS Unregistered Sales of Equity Securities There were no unregistered sales of equity securities during the three months ended June 30, 2026. Issuer Purchases of Equity Securities In October 2024, our board of directors authorized and approved a share repurchase program, which provided for the repurchase of up to $1.0 billion of our outstanding Class A common stock without expiration. In October 2025, our board of directors (i) increased the aggregate repurchase authorization under the program from $1.0 billion to $2.0 billion and (ii) expanded the scope of the repurchases to include a portion of the aggregate principal amount of our then outstanding 2026 Convertible Notes, 2029 Convertible Notes, 2030 Convertible Notes, 2032 Convertible Notes, and both series of Senior Notes (collectively, the Notes ). In January 2026, our board of directors approved a $2.0 billion increase in the authorization of our previously announced repurchase program from $2.0 billion to $4.0 billion (as modified, the Repurchase Program ). Repurchases may be made from time to time in the open market (including through trading plans intended to qualify under Rule 10b5-1 under the Exchange Act), in privately negotiated transactions, in a tender offer, or by other methods in accordance with the applicable federal and state laws and regulations. The timing and amount of any repurchases will depend on market conditions and other considerations, and will be made at management s discretion. The Repurchase Program does not obligate us to repurchase any dollar amount or number of shares of our Class A 44 Table of Contents common stock or Notes and may be modified, suspended, or discontinued at any time. The following table contains information relating to the repurchases of shares of our Class A common stock made by us in the three months ended June 30, 2026. PeriodTotal Number of Shares PurchasedAverage Price Paid per Share(1) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs(2) Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs April 1 April 30, 2026 $ $2,087,588,148 May 1 May 31, 2026 $ $2,087,588,148 June 1 June 30, 2026814,249 $148.94 814,249 $1,966,316,652 814,249 814,249 __________________ (1)Average price paid per share includes commissions related to repurchases. (2)Share counts reported in this table are recognized on a settlement date basis. The above table excludes shares repurchased to settle employee tax withholding related to the vesting of stock awards. See the Condensed Consolidated Statements of Changes in Shareholders Equity included in Part I, Item 1 of this Quarterly Report on Form 10-Q for quantification of all shares repurchased by us during the periods presented. ITEM 3. DEFAULTS UPON SENIOR SECURITIES None ITEM 4. MINE SAFETY DISCLOSURES Not applicable ITEM 5. OTHER INFORMATION Rule 10b5-1 Trading Plans The Company s directors and officers (as defined in Rule 16a-1(f) under the Exchange Act) are only permitted to trade in the Company s securities pursuant to a prearranged trading plan intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Exchange Act (a Rule 10b5-1 Plan ). During the three months ended June 30, 2026, a trust affiliated with one of the Company s non-employee directors adopted a Rule 10b5-1 Plan, which was entered into during an open trading window in accordance with the Company s Insider Trading Policy and Trading Plan Policy. On June 5, 2026, the LAMA Community Trust (the LAMA Trust ), of which Marc Andreessen, a member of the Company s board of directors, and his spouse are trustees, entered into a Rule 10b5-1 Plan (the LAMA Trust Plan ) providing for the sale of up to 574,416 shares of Class A common stock owned by the LAMA Trust, so long as the market price of the Class A common stock is higher than certain minimum threshold prices specified in the LAMA Trust Plan during the period beginning on September 5, 2026 and ending on September 4, 2027, or such earlier date as sale of all shares specified in the LAMA Trust Plan is completed or the occurrence of certain events set forth therein. 45 Table of Contents ITEM 6. EXHIBITS Incorporated by ReferenceFiled or Furnished Herewith Exhibit NumberDescriptionFormFile No.ExhibitFiling Date 31.1Certification of Principal Executive Officer pursuant to Rules 13a-14(a) and 15d-14(a) under the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 X 31.2Certification of Principal Financial Officer pursuant to Rules 13a-14(a) and 15d-14(a) under the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 X 32.1 Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 X 32.2 Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 X 101.INSInline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document)X 101.SCHInline XBRL Taxonomy Extension Schema With Embedded Linkbase DocumentsX 104Cover Page Interactive Data File - the cover page from the registrant s Quarterly Report on Form 10-Q for the quarter ended June 30, 2026 is formatted as Inline XBRL and contained in Exhibit 101 X The certifications furnished in Exhibits 32.1 and 32.2 hereto are deemed to accompany this Quarterly Report on Form 10-Q and are not deemed filed for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section, nor shall they be deemed incorporated by reference into any filing under the Securities Act or the Exchange Act. 46 Table of Contents SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this Quarterly Report on Form 10-Q to be signed on its behalf by the undersigned, thereunto duly authorized. COINBASE GLOBAL, INC. Date: July 30, 2026 By: /s/ Brian Armstrong Brian Armstrong Chief Executive Officer and Director (Principal Executive Officer) Date: July 30, 2026 By: /s/ Alesia J. Haas Alesia J. Haas Chief Financial Officer (Principal Financial Officer) 47