Coinbase Global, Inc. 10-Q

ITEM 1. FINANCIAL STATEMENTS Coinbase Global, Inc. Condensed Consolidated Balance Sheets (In thousands, except per share data) (Unaudited) March 31, December 31, 2026 2025 Assets Current assets: Cash and cash equivalents $ 10,205,022 $ 11,285,452 Restricted cash and cash equivalents 294,807 334,318 Customer custodial funds 5,476,614 5,347,428 Crypto assets held for operations 90,661 120,831 Loan receivables 1,444,733 1,354,692 Crypto assets held as collateral 1,141,633 822,827 Crypto assets borrowed 246,380 318,849 Accounts receivable, net 296,237 307,119 Marketable investments 232,980 309,765 Other current assets 250,743 187,164 Total current assets 19,679,810 20,388,445 Crypto assets held for investment 1,601,231 1,998,871 Strategic investments 832,420 622,985 Deferred tax assets 647,664 570,819 Goodwill 4,208,389 4,168,967 Intangible assets, net 1,364,983 1,397,794 Other non-current assets 514,295 523,951 Total assets $ 28,848,792 $ 29,671,832 Liabilities and Shareholders’ Equity Current liabilities: Customer custodial fund liabilities $ 5,476,614 $ 5,347,428 Current portion of long-term debt 1,271,056 1,269,585 Short-term borrowings 564,610 452,105 Obligation to return collateral 1,151,861 826,883 Accrued expenses and other current liabilities 726,749 805,281 Total current liabilities 9,190,890 8,701,282 Long-term debt 5,940,628 5,937,034 Other non-current liabilities 236,701 240,458 Total liabilities 15,368,219 14,878,774 Commitments and contingencies (Note 19) Shareholders’ equity: Preferred stock, $ 0.00001 par value; 500,000 shares authorized and zero shares issued and outstanding at each of March 31, 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 March 31, 2026 and December 31, 2025; 263,411 (Class A 222,377 , Class B 41,034 ) shares issued and outstanding at March 31, 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 capital 7,666,768 8,566,854 Accumulated other comprehensive (loss) income ( 13,309 ) 4,973 Retained earnings 5,827,111 6,221,228 Total shareholders’ equity 13,480,573 14,793,058 Total liabilities and shareholders’ equity $ 28,848,792 $ 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 March 31, 2026 2025 Revenue: Net revenue $ 1,339,348 $ 1,936,821 Other revenue 73,634 97,474 Total revenue 1,412,982 2,034,295 Operating expenses: Transaction expense 195,859 303,026 Technology and development 525,648 355,368 Sales and marketing 266,726 247,283 General and administrative 376,094 394,346 Losses on crypto assets held for operations, net 35,151 34,365 Other operating expense (income), net 34,925 ( 5,899 ) Total operating expenses 1,434,403 1,328,489 Operating (loss) income ( 21,421 ) 705,806 Interest expense 22,569 20,511 Losses on crypto assets held for investment, net 482,356 596,651 Other (income) expense, net ( 61,641 ) 6,188 (Loss) income before income taxes ( 464,705 ) 82,456 (Benefit from) provision for income taxes ( 70,588 ) 16,848 Net (loss) income $ ( 394,117 ) $ 65,608 Net (loss) income attributable to common shareholders: Basic $ ( 394,117 ) $ 65,608 Diluted $ ( 394,117 ) $ 65,608 Net (loss) income per share: Basic $ ( 1.49 ) $ 0.26 Diluted $ ( 1.49 ) $ 0.24 Weighted-average shares of common stock used to compute net (loss) income per share: Basic 264,775 253,878 Diluted 264,775 271,251 The accompanying notes are an integral part of these Condensed Consolidated Financial Statements. 5 Table of Contents Coinbase Global, Inc. Condensed Consolidated Statements of Comprehensive Income (In thousands) (Unaudited) Three Months Ended March 31, 2026 2025 Net (loss) income $ ( 394,117 ) $ 65,608 Other comprehensive (loss) income: Translation adjustment ( 18,282 ) 8,018 Income tax effect — ( 59 ) Translation adjustment, net of tax ( 18,282 ) 7,959 Comprehensive (loss) income $ ( 412,399 ) $ 73,567 The accompanying notes are an integral part of these Condensed Consolidated Financial Statements. 6 Table of Contents Coinbase Global, Inc. Condensed Consolidated Statements of Changes in Shareholders' Equity (In thousands) (Unaudited) Additional Paid-In Capital Accumulated Other Comprehensive Income (Loss) Retained Earnings Common Stock Shares Amount Total Balance at January 1, 2026 267,836 $ 3 $ 8,566,854 $ 4,973 $ 6,221,228 $ 14,793,058 Common stock issued as consideration for business combination 173 — 19,386 — — 19,386 Common stock issued in connection with equity awards 2,312 — 9,235 — — 9,235 Common stock repurchased ( 6,278 ) — ( 1,062,234 ) — — ( 1,062,234 ) Common stock withheld for net share settlement of equity awards ( 632 ) — ( 118,925 ) — — ( 118,925 ) Stock-based compensation (inclusive of capitalized stock-based compensation) — — 252,452 — — 252,452 Other comprehensive loss — — — ( 18,282 ) — ( 18,282 ) Net loss — — — — ( 394,117 ) ( 394,117 ) Balance at March 31, 2026 263,411 $ 3 $ 7,666,768 $ ( 13,309 ) $ 5,827,111 $ 13,480,573 Balance at January 1, 2025 253,640 $ 2 $ 5,365,990 $ ( 50,051 ) $ 4,960,901 $ 10,276,842 Common stock issued in connection with equity awards 1,338 — 10,840 — — 10,840 Common stock withheld for net share settlement of equity awards ( 388 ) — ( 100,303 ) — — ( 100,303 ) Stock-based compensation (inclusive of capitalized stock-based compensation) — — 207,294 — — 207,294 Other comprehensive income — — — 7,959 — 7,959 Net income — — — — 65,608 65,608 Balance at March 31, 2025 254,590 $ 2 $ 5,483,821 $ ( 42,092 ) $ 5,026,509 $ 10,468,240 The accompanying notes are an integral part of these Condensed Consolidated Financial Statements. 7 Table of Contents Coinbase Global, Inc. Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited) Three Months Ended March 31, 2026 2025 Cash flows from operating activities Net (loss) income $ ( 394,117 ) $ 65,608 Adjustments to reconcile net (loss) income to net cash provided by operating activities: Depreciation and amortization 68,006 33,333 Stock-based compensation expense 248,055 190,729 Deferred income taxes ( 77,176 ) ( 54,540 ) Losses on crypto assets held for operations, net 35,151 34,365 Losses on crypto assets held for investment, net 482,356 596,651 Gains on investments, net ( 46,797 ) ( 3,327 ) Other operating activities, net 23,480 80,956 Changes in operating assets and liabilities: Other current and non-current assets ( 25,346 ) ( 78,696 ) Other current and non-current liabilities ( 130,868 ) ( 12,385 ) Net cash provided by operating activities 182,744 852,694 Cash flows from investing activities Loans originated ( 3,011,186 ) ( 1,937,709 ) Proceeds from repayment of loans 2,964,795 2,013,905 Business combinations, net of cash and cash equivalents acquired ( 22,085 ) ( 16,683 ) Purchases of crypto assets held for investment ( 82,979 ) ( 153,337 ) Dispositions of crypto assets held for investment 18,880 17,107 Purchase of investments ( 217,490 ) ( 27,227 ) Dispositions of investments 128,997 5,140 Other investing activities, net ( 17,996 ) ( 26,531 ) Net cash used in investing activities ( 239,064 ) ( 125,335 ) Cash flows from financing activities Repurchase of common stock ( 1,062,234 ) — Customer custodial fund liabilities 149,814 ( 818,487 ) Customer collateral received 7,504 111,994 Return of customer collateral ( 1,337 ) ( 105,329 ) Taxes paid related to net share settlement of equity awards ( 118,925 ) ( 100,303 ) Proceeds from short-term borrowings 243,529 194,893 Repayments of short-term borrowings ( 101,932 ) ( 208,004 ) Other financing activities, net 18,674 18,323 Net cash used in financing activities ( 864,907 ) ( 906,913 ) Net decrease in cash, cash equivalents, and restricted cash and cash equivalents ( 921,227 ) ( 179,554 ) Effect of exchange rates on cash, cash equivalents, and restricted cash and cash equivalents ( 38,171 ) 1,655 Cash, cash equivalents, and restricted cash and cash equivalents, beginning of period 16,893,420 15,683,456 Cash, cash equivalents, and restricted cash and cash equivalents, end of period $ 15,934,022 $ 15,505,557 Cash and cash equivalents $ 10,205,022 $ 9,969,393 Restricted cash and cash equivalents 294,807 339,090 Customer custodial cash and cash equivalents 5,434,193 5,197,074 Total cash, cash equivalents, and restricted cash and cash equivalents $ 15,934,022 $ 15,505,557 Supplemental cash flow disclosure Crypto assets borrowed 1,229,303 465,262 Crypto assets borrowed repaid 1,250,883 440,796 Customer crypto assets received as collateral 1,441,176 779,893 Customer crypto asset collateral returned 986,628 797,722 Crypto asset loan receivables originated 1,078,495 730,895 Crypto asset loan receivables repaid 1,031,442 766,183 Additions of crypto asset investments — 166,291 The accompanying notes are an integral part of these Condensed Consolidated Financial Statements. 8 Table of Contents Coinbase Global, Inc. Notes to Condensed Consolidated Financial Statements (Unaudited) 1. NATURE OF OPERATIONS Coinbase, Inc. was founded in 2012. In April 2014, in connection with a corporate reorganization, Coinbase, Inc. became a wholly-owned subsidiary of Coinbase Global, Inc. (together with its consolidated subsidiaries, the “Company”). The Company provides a trusted platform that serves as a compliant on-ramp to the onchain economy and enables users to engage in a wide variety of activities with their crypto assets in both proprietary and third-party product experiences enabled by access to decentralized applications. The Company offers (i) consumers their primary financial account for the onchain economy, (ii) institutions a full-service prime brokerage platform with access to deep pools of liquidity across the crypto marketplace, and (iii) developers a suite of products granting access to build onchain. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation and preparation The accompanying Condensed Consolidated Financial Statements (the “Financial Statements”) include the accounts of the Company and its subsidiaries – entities in which the Company holds, directly or indirectly, more than 50% of the voting rights, or where it exercises control. The Financial Statements are unaudited but have been prepared in accordance with United States (“U.S.”) generally accepted accounting principles (“GAAP”) on the same basis as the audited Consolidated Financial Statements, and in management’s opinion, reflect all adjustments, consisting only of normal, recurring adjustments, that are necessary for the fair presentation of the Company’s Financial Statements. Preparation of the Financial Statements in accordance with GAAP requires management to make estimates and assumptions in the Financial Statements and notes thereto. The unaudited Condensed Consolidated Results of Operations for the three months ended March 31, 2026 are not necessarily indicative of the results to be expected for the full year or any other period and should be read in conjunction with the audited Consolidated Financial Statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 filed with the Securities and Exchange Commission (the “SEC”) on February 12, 2026 (the “Annual Report”). Certain prior period amounts in the Financial Statements have been reclassified to conform to the current period’s presentation. There were no material changes to the Company’s most significant estimates and assumptions, significant accounting policies, segment reporting, or recent accounting pronouncements that were disclosed in Note 2. Summary of Significant Accounting Policies to the Consolidated Financial Statements included in the Annual Report, other than as discussed below. Changes in financial statement presentation During the first quarter of 2026, the Company revised the presentation of revenue earned on corporate payment stablecoin balances. As these assets are classified as cash and cash equivalents and managed as fungible in daily operations, the Company determined that presenting all similar revenue within a single line item enhances transparency. Accordingly, this revenue is now presented in Other revenue rather than in Net revenue in the Condensed Consolidated Statements of Operations, with no impact to Total revenue. There is no change to the Company's arrangement with Circle Internet Financial, LLC ("Circle") or the revenue generated. The associated amount of revenue earned on corporate payment stablecoin balances for the three months ended March 31, 2025 of $ 23.5 million has been reclassified to conform to the current period presentation. See Note 4. Revenue for additional details. Additionally, the Company revised the presentation of certain loan collateral received and returned in the Condensed Consolidated Statement of Cash Flows, from a gross to a net basis. The Company determined that a net presentation more accurately reflects the economic substance of these transactions, where the turnover is quick, the amounts are large, and the maturities are short, and that this net presentation is consistent with the existing net presentation of the related loan balances. The change in presentation was applied retrospectively to all periods presented, as shown in the table below 9 Table of Contents Coinbase Global, Inc. Notes to Condensed Consolidated Financial Statements (Unaudited) in the column with the heading “Change in Presentation.” The reclassification had no effect on previously reported total net cash used in investing activities, net income, or any balance sheet amounts. Change in accounting principle Accounting for payment stablecoins Effective December 31, 2025, the Company voluntarily elected to change its method of accounting for payment stablecoins, including USDC, EURC, and PYUSD, to classify them as cash equivalents and to apply the Company’s accounting policies for crypto lending, borrowing, and collateral to payment stablecoin lending, borrowing, and collateral. The change in accounting principle was applied retrospectively to all periods presented, including in the Condensed Consolidated Statements of Cash Flows, the changes to which are shown in the table below in the column with the heading “Change in Principle.” The reclassification had no effect on previously reported total assets, total liabilities, equity, net income, or earnings per share for any period presented. Impact of financial statement reclassifications The following table presents the impact of the changes in financial statement presentation and accounting principle, as discussed above, on the Condensed Consolidated Statements of Cash Flows (in thousands): Three Months Ended March 31, 2025 Previously Reported Change in Presentation Change in Principle As Adjusted Changes in operating assets and liabilities $ ( 1,126,502 ) $ — $ 1,035,421 $ ( 91,081 ) Loans originated ( 277,922 ) — ( 1,659,787 ) ( 1,937,709 ) Proceeds from repayment of loans 248,055 — 1,765,850 2,013,905 Purchase of investments ( 22,070 ) — ( 5,157 ) ( 27,227 ) Dispositions of investments 4,968 — 172 5,140 Purchases of crypto assets held for investment ( 148,083 ) — ( 5,254 ) ( 153,337 ) Dispositions of crypto assets held for investment 10,622 — 6,485 17,107 Other investing activities, net (1) ( 30,540 ) — 4,009 ( 26,531 ) Customer collateral received 231,895 ( 171,257 ) 51,356 111,994 Return of customer collateral ( 225,230 ) 171,257 ( 51,356 ) ( 105,329 ) Proceeds from short-term borrowings — — 194,893 194,893 Repayments of short-term borrowings — — ( 208,004 ) ( 208,004 ) __________________ (1) Business combinations, net of cash and cash equivalents acquired, Purchase of investments, and Dispositions of investments are presented as separate line items on the face of the Condensed Consolidated Statements of Cash Flows and are therefore excluded from this presentation of Other investing activities, net. Recent accounting pronouncements Accounting pronouncements pending adoption On September 18, 2025, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) No. 2025-06, Targeted Improvements to the Accounting for Internal-Use Software (“ASU 2025-06”). ASU 2025-06 amends Accounting Standards Codification (“ASC”) 350-40, Intangibles-Goodwill and Other-Internal Use Software, to reflect that software is not always developed in a linear manner, removing all references to development stages and adding new guidance on how to evaluate whether the probable-to-complete threshold has been met. ASU 2025-06 is required to be adopted for fiscal years commencing after December 15, 2027, with early adoption permitted. ASU 2025-06 allows for a prospective, retrospective, or modified transition approach to adoption, based on the status of the project and whether software costs were capitalized before the date of adoption. The Company anticipates using 10 Table of Contents Coinbase Global, Inc. Notes to Condensed Consolidated Financial Statements (Unaudited) a prospective transition approach and is evaluating the impact of adopting the standard on the Financial Statements. Concentration of credit risk The Company’s cash and cash equivalents, restricted cash and cash equivalents, customer custodial funds, loan receivables, certain crypto assets held, accounts receivable, and deposits are potentially subject to concentration of credit risk. See below and Notes 5. Collateralized Arrangements and Financing and 7. Accounts Receivable, Net for a discussion of these risks by counterparty and type of transaction. Payment stablecoins Payment stablecoins are redeemable on a one-to-one basis for cash and cash equivalents and are classified as Cash and cash equivalents in the Condensed Consolidated Balance Sheets. As of March 31, 2026 and December 31, 2025, the reserves backing these payment stablecoins were held by the issuers in cash and cash equivalents in segregated accounts titled for the benefit of payment stablecoin holders. Funds held at financial institutions Cash and cash equivalents, excluding payment stablecoins which are held on our platform, are primarily placed with financial institutions which are of high credit quality, primarily in highly liquid, highly rated instruments which are uninsured. The Company may also have corporate deposit balances with financial institutions which exceed the Federal Deposit Insurance Corporation insurance limit of $250,000. The Company has not experienced losses on these accounts and does not believe it is exposed to any significant credit risk with respect to these accounts. Funds held at venues The Company holds cash at venues, which include third-party payment processors, digital wallets, and trading platforms, but exclude clearing agents, and performs a regular assessment of these venues as part of its risk management process. As of March 31, 2026 and December 31, 2025, the Company held an immaterial amount and $ 110.8 million, respectively, of cash at venues. 3. ACQUISITIONS Information on acquisitions completed during the periods presented is set forth below. The results of operations of all business combinations have been recorded in the Financial Statements since the dates of acquisition. Deribit On August 14, 2025, the Company acquired the outstanding equity of Sentillia B.V. (“Deribit”), a crypto derivatives exchange. The Company believes this strategic acquisition will play a key role in its goal to be the premier global platform for crypto derivatives. Total consideration transferred in the acquisition, subject to customary post-closing adjustments, was $ 4.3 billion, consisting of the following (in thousands): Cash $ 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. 11 Table of Contents Coinbase Global, Inc. Notes to Condensed Consolidated Financial Statements (Unaudited) 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 assets 1,390,000 Crypto assets held for investment 164,263 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 Value Useful Life at Acquisition (in years) Customer relationships $ 1,059,000 15 Acquired developed technology 288,000 6 Trade name 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 w e re 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. 12 Table of Contents Coinbase Global, Inc. Notes to Condensed Consolidated Financial Statements (Unaudited) 4. REVENUE The following table presents revenue disaggregated by type (in thousands): Three Months Ended March 31, 2026 2025 Net revenue Transaction revenue Consumer, net $ 566,899 $ 1,095,506 Institutional, net 135,726 98,888 Other transaction revenue, net 53,200 67,814 Total transaction revenue 755,825 1,262,208 Subscription and services revenue Stablecoin revenue (1) 305,435 274,037 Blockchain rewards 100,849 196,592 Interest and finance fee income (2) 67,805 63,086 Other subscription and services revenue 109,434 140,898 Total subscription and services revenue 583,523 674,613 Total net revenue 1,339,348 1,936,821 Other revenue Corporate interest and other income (1) 73,634 97,474 Total other revenue 73,634 97,474 Total revenue $ 1,412,982 $ 2,034,295 __________________ (1) Amounts represent revenue that is not accounted for as revenue from contracts with customers, as defined in ASC 606, Revenue from Contracts with Customers (“ASC 606”). During the first quarter of 2026, the Company 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. The associated $ 23.5 million for the three months ended March 31, 2025 has been reclassified to conform to current period presentation. (2) Amounts primarily represent revenue that is not accounted for as revenue from contracts with customers, as well as an immaterial amount of finance fee income that is accounted for as revenue from contracts with customers. During the three months ended March 31, 2026 and 2025, one counterparty accounted for 23 % and 15 %, respectively, of total revenue. Revenue by geographic location The following table presents revenue disaggregated by geography based on domiciles of the customer or other counterparty (in thousands): Three Months Ended March 31, 2026 2025 U.S. (1) $ 1,184,401 $ 1,705,652 International (2) 228,581 328,643 Total revenue $ 1,412,982 $ 2,034,295 __________________ (1) Nearly all revenue that is not accounted for as revenue from contracts with customers, as defined in ASC 606, is with counterparties in the U.S. (2) No country accounted for more than 10% of Total revenue. 13 Table of Contents Coinbase Global, Inc. Notes to Condensed Consolidated Financial Statements (Unaudited) 5. COLLATERALIZED ARRANGEMENTS AND FINANCING Lending and related collateral The following table summarizes the Company’s institutional financing lending arrangements (in thousands): March 31, December 31, 2026 2025 Fiat and payment stablecoin loan receivables $ 1,392,286 $ 1,340,213 Crypto asset loan receivables 52,447 14,479 Total loan receivables (1) $ 1,444,733 $ 1,354,692 __________________ (1) Includes an immaterial amount of fiat and crypto asset trade finance receivables as of March 31, 2026 and December 31, 2025. As of each of March 31, 2026 and December 31, 2025, the Company had four counterparties, each of whom accounted for more than 10 % of the Company’s Loan receivables. As of March 31, 2026 and December 31, 2025, the collateral requirements for all loans outstanding ranged from 100 % to 250 % of the fair value of the loan. The following table summarizes assets the Company held and recognized as collateral relating to lending activity, with a corresponding obligation to return the collateral to the borrower (in thousands, except units): March 31, 2026 December 31, 2025 Units Cost Basis Fair Value Units Cost Basis Fair Value Fiat and payment stablecoins (1) N/A N/A $ 10,228 N/A N/A $ 4,056 Bitcoin 11,340 $ 864,573 $ 773,653 8,479 $ 810,055 $ 747,697 Ethereum 16,488 42,289 34,684 16,041 51,023 47,731 Crypto assets held as collateral $ 906,862 808,337 $ 861,078 795,428 Total recognized lending collateral $ 818,565 $ 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. 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): March 31, December 31, 2026 2025 Fiat and payment stablecoins $ 242,229 $ 303,983 Crypto assets 1,896,044 1,559,458 Total customer collateral not recognized as collateral $ 2,138,273 $ 1,863,441 14 Table of Contents Coinbase Global, Inc. Notes to Condensed Consolidated Financial Statements (Unaudited) Borrowings and related collateral The following table summarizes the units, cost basis, and fair value of Crypto assets borrowed (in thousands, except units): March 31, 2026 December 31, 2025 Units Cost Basis Fair Value Units Cost Basis Fair Value Bitcoin 1,395 $ 119,327 $ 95,147 1,920 $ 173,848 $ 167,989 Ethereum 63,983 140,818 134,595 43,536 149,374 129,162 Other crypto assets (1) nm 21,297 16,638 nm 27,145 21,698 Total borrowed $ 281,442 $ 246,380 $ 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): March 31, 2026 December 31, 2025 Units Cost Basis Fair Value Units Cost Basis Fair Value Payment stablecoins N/A N/A $ 261,520 N/A N/A $ 119,923 Bitcoin 2,035 $ 166,210 $ 138,802 2,035 $ 183,882 $ 178,022 Ethereum 65,192 143,436 137,138 43,941 150,424 130,363 Other crypto assets (1) nm 32,480 27,150 nm 29,399 23,797 Total crypto asset borrowings $ 342,126 303,090 $ 363,705 332,182 Total short-term borrowings $ 564,610 $ 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 March 31, 2026 and December 31, 2025, the weighted average annual fees on Short-term borrowings were 3.8 % 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): March 31, 2026 December 31, 2025 Payment stablecoins $ 232,290 $ 236,308 15 Table of Contents Coinbase Global, Inc. Notes to Condensed Consolidated Financial Statements (Unaudited) Derivatives collateral The Company also has collateralized derivative arrangements, whereby it enters into crypto asset derivative contracts with customers, primarily to provide liquidity for global derivatives trading. The following table summarizes customer-pledged derivatives collateral presented in the Condensed Consolidated Balance Sheets as Crypto assets held as collateral, with a corresponding obligation to return the collateral to the customer (in thousands, except units): March 31, 2026 December 31, 2025 Units Cost Basis Fair Value Units Cost Basis Fair Value Bitcoin 4,844 $ 433,472 $ 330,467 100 $ 8,732 $ 8,750 Ethereum 1,345 2,736 2,829 6,286 18,713 18,649 Total recognized derivatives collateral $ 436,208 $ 333,296 $ 27,445 $ 27,399 As of March 31, 2026 and December 31, 2025, the collateral requirements for outstanding derivatives were at least 100% of the derivative notional value. 6. CRYPTO ASSETS HELD FOR OPERATIONS The following table summarizes Crypto assets held for operations (in thousands, except units): March 31, 2026 December 31, 2025 Units Cost Basis Fair Value Units Cost Basis Fair Value Bitcoin 457 $ 47,554 $ 31,384 487 $ 48,191 $ 43,282 Ethereum 10,787 21,561 23,046 10,499 27,341 31,174 Solana 40,875 4,223 3,380 52,933 7,698 6,624 Other crypto assets (1) nm 54,524 32,851 nm 55,068 39,751 Total held for operations $ 127,862 $ 90,661 $ 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. 7. ACCOUNTS RECEIVABLE, NET Accounts receivable, net consisted of the following (in thousands): March 31, December 31, 2026 2025 Stablecoin revenue receivable $ 125,223 $ 122,936 Customer accounts receivable 56,122 54,143 Other accounts receivable 119,178 133,202 Gross accounts receivable 300,523 310,281 Less: allowance for doubtful accounts ( 4,286 ) ( 3,162 ) Total accounts receivable, net $ 296,237 $ 307,119 As of each of March 31, 2026 and December 31, 2025, the Company had two counterparties, each of whom accounted for more than 10 % of the Company’s Accounts receivable, net. 16 Table of Contents Coinbase Global, Inc. Notes to Condensed Consolidated Financial Statements (Unaudited) 8. CRYPTO ASSETS HELD FOR INVESTMENT The following table summarizes Crypto assets held for investment (in thousands, except units): March 31, 2026 December 31, 2025 Units Cost Basis Fair Value Units Cost Basis Fair Value Bitcoin 16,492 $ 1,156,723 $ 1,123,445 15,389 $ 1,079,153 $ 1,346,452 Ethereum 150,193 340,834 315,129 151,175 348,975 448,484 Other crypto assets (1) nm 244,557 162,657 nm 323,226 203,935 Total held for investment $ 1,742,114 $ 1,601,231 $ 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 March 31, 2026, the Company held $ 66.3 million of Crypto assets held for investment subject to selling restrictions that are time-based and lift between 2026 and 2030 . 9. INTANGIBLE ASSETS, NET Intangible assets, net excludes internally developed software and crypto assets, which are presented within Software and equipment, net and the various crypto assets held line items in 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): Three Months Ended March 31, 2026 2025 Technology and development $ 15,784 $ 1,724 Sales and marketing 18,019 — General and administrative 1,809 3,381 Total amortization expense $ 35,612 $ 5,105 There were no material impairment charges associated with these assets during these periods. The Company estimates no significant residual value related to these amortizing intangible assets. The expected future amortization expense for amortizing intangible assets for the 12-month period ending March 31 of the respective year, as of March 31, 2026, is as follows (in thousands): 2027 $ 137,755 2028 130,483 2029 125,589 2030 123,986 2031 123,383 Thereafter 695,787 Total expected future amortization expense $ 1,336,983 10. LONG-TERM DEBT As of March 31, 2026 and December 31, 2025, the Company had fixed-rate convertible notes and senior notes with varying maturities for an aggregate carrying amount of $ 7.2 billion. As of March 31, 2026 and December 31, 2025, the fair value of the Company’s convertible notes and senior notes, based on Level 2 valuation inputs, was $ 6.5 billion and $ 6.9 billion, respectively. See Note 11. Long-Term Debt 17 Table of Contents Coinbase Global, Inc. Notes to Condensed Consolidated Financial Statements (Unaudited) to the Consolidated Financial Statements included in the Annual Report for more information regarding the Company’s long-term debt. 11. 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 March 31, 2026 Accounts receivable, net $ 4,556 $ 18,792 $ 187 $ 23,161 Short-term borrowings 342,126 51,931 12,895 303,090 Obligation to return collateral 1,343,070 238,668 37,231 1,141,633 Accrued expenses and other current liabilities (1) 13,975 — — 13,975 Total fair value of derivatives $ 309,391 $ 50,313 December 31, 2025 Accounts receivable, net $ 9,943 $ 22,025 $ 4,399 $ 27,569 Short-term borrowings 363,705 32,446 923 332,182 Obligation to return collateral 888,523 126,962 61,266 822,827 Accrued expenses and other current liabilities 6,897 — 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 $ 323.2 million for each of the asset and liability, at March 31, 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. 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): Three Months Ended March 31, 2026 2025 Short-term borrowings (1) $ 7,513 $ 51,968 Obligation to return collateral (1) 135,741 152,106 Other (2) 9,258 ( 15,249 ) Total $ 152,512 $ 188,825 __________________ (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 expense (income), net or Other (income) expense, net in the Condensed Consolidated Statements of Operations depending on the nature of the derivative. 18 Table of Contents Coinbase Global, Inc. Notes to Condensed Consolidated Financial Statements (Unaudited) 12. CONDENSED CONSOLIDATED BALANCE SHEETS DETAILS The following table presents certain other details of the Condensed Consolidated Balance Sheets (in thousands): March 31, December 31, 2026 2025 Other current assets Prepaid expenses $ 133,172 $ 94,886 Income taxes receivable 70,390 63,726 Other 47,181 28,552 Total other current assets $ 250,743 $ 187,164 Other non-current assets Software and equipment, net $ 251,121 $ 264,573 Lease right-of-use assets 156,231 141,631 Income taxes receivable 62,807 62,233 Other 44,136 55,514 Total other non-current assets $ 514,295 $ 523,951 Accrued expenses and other current liabilities Payroll and payroll related expenses $ 183,192 $ 186,927 Other accrued expenses 226,719 238,308 Accounts payable 112,206 117,605 Income taxes payable 63,693 65,982 Other payables 140,939 196,459 Total accrued expenses and other current liabilities $ 726,749 $ 805,281 Other non-current liabilities Lease liabilities $ 188,129 $ 172,735 Other 48,572 67,723 Total other non-current liabilities $ 236,701 $ 240,458 19 Table of Contents Coinbase Global, Inc. Notes to Condensed Consolidated Financial Statements (Unaudited) 13. FAIR VALUE MEASUREMENTS Assets and liabilities measured and recorded at fair value on a recurring basis The following table sets forth by level within the fair value hierarchy, the Company’s assets and liabilities measured and recorded at fair value on a recurring basis (in thousands): March 31, 2026 December 31, 2025 Level 1 Level 2 Level 1 Level 2 Assets Cash equivalents (1) $ 4,571,198 $ — $ 6,088,290 $ — Restricted cash equivalents (2) 1,940 — 1,472 — Customer custodial funds (3) 2,987,581 — 3,438,375 — Crypto assets held for operations 90,661 — 120,831 — Crypto asset loan receivables — 52,447 — 14,479 Crypto assets held as collateral 1,141,633 — 822,827 — Crypto assets borrowed 246,380 — 318,849 — Marketable investments (4) 221,012 11,968 253,468 11,903 Crypto assets held for investment 1,601,231 — 1,998,871 — Derivative assets (5) — 309,391 — 181,433 Total assets $ 10,861,636 $ 373,806 $ 13,042,983 $ 207,815 Liabilities Derivative liabilities (5) $ — $ 50,313 $ — $ 66,590 __________________ (1) Represents money market funds. Excludes cash and cash equivalents of $ 5.6 billion and $ 5.2 billion as of March 31, 2026 and December 31, 2025, respectively. (2) Represents money market funds. Excludes restricted cash and cash equivalents of $ 292.9 million and $ 332.8 million as of March 31, 2026 and December 31, 2025, respectively. (3) Represents customer custodial cash equivalents, which comprise money market funds. Excludes customer custodial funds of $ 2.5 billion and $ 1.9 billion as of each of March 31, 2026 and December 31, 2025, respectively. (4) Primarily represents marketable equity securities. Excludes marketable investments not measured and recorded at fair value, with none as of March 31, 2026 and $ 44.4 million as of December 31, 2025. (5) See Note 11. Derivatives for additional details. The Company has valued all Level 1 assets and liabilities using quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. The Company has valued all Level 2 assets and liabilities using quoted market prices as an observable input. This includes prices for underlying crypto assets and, for non-crypto denominated assets and liabilities, prices for similar assets and liabilities in inactive markets. Assets and liabilities measured and recorded at fair value on a non-recurring basis The Company’s non-financial assets, such as software and equipment, goodwill, and other intangible assets, are adjusted to fair value when an impairment charge is recognized. The Company’s strategic investments are nearly all accounted for using the measurement alternative, whereby they are recognized at cost and adjusted to fair value for observable transactions for same or similar investments of the same issuer or for impairment, on a non-recurring basis. Fair value measurements for these strategic investments are based predominantly on Level 3 inputs to an Option-Pricing Model that uses publicly available market data of comparable companies and other unobservable inputs including expected volatility, expected time to liquidity, adjustments for other company-specific developments, and the rights and obligations of the securities the Company holds. 20 Table of Contents Coinbase Global, Inc. Notes to Condensed Consolidated Financial Statements (Unaudited) The impact on the Condensed Consolidated Statements of Operations from remeasurement of measurement alternative investments was immaterial for all periods presented, as were cumulative upward adjustments of measurement alternative investments outstanding at March 31, 2026 and December 31, 2025. Cumulative impairments and downward adjustments as of these dates were $ 126.2 million and $ 127.7 million, respectively. Assets and liabilities not measured and recorded at fair value Certain of the Company’s financial instruments are not measured and recorded at fair value but their carrying values approximate fair value due to their liquid or short-term nature. Financial instruments denominated in fiat or payment stablecoins that would be based on Level 1 valuation inputs if they were recorded at fair value include cash, restricted cash, payment stablecoins, certain customer custodial funds and related liabilities, collateral pledged, and obligations to return collateral. Financial instruments denominated in fiat or payment stablecoins that would be based on Level 2 valuation inputs if they were recorded at fair value include accounts receivable, loan receivables, and accounts payable. The Company’s long-term debt is not measured and recorded at fair value and its carrying value generally does not approximate its fair value. See Note 10. Long-Term Debt for its estimated fair value. 14. CAPITAL STOCK Share repurchase program In October 2024, the Board authorized and approved a share repurchase program, which provided for the repurchase of up to $ 1.0 billion of the Company’s Class A common stock without expiration and in October 2025, the Board (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 the Company’s outstanding 2026 Convertible Notes, 2029 Convertible Notes, 2030 Convertible Notes, 2032 Convertible Notes, and both series of Senior Notes (collectively, the “Notes”) (as modified, the “Repurchase Program”). In January 2026, the Board approved a $ 2.0 billion increase in the authorization under the previously announced Repurchase Program from $ 2.0 billion to $ 4.0 billion . 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 the Company to repurchase any dollar amount or number of shares of the Company’s Class A common stock or Notes and may be modified, suspended, or discontinued at any time. As of March 31, 2026, $ 1.9 billion had been utilized to repurchase 6,278,390 shares of Class A common stock under the Repurchase Program, and $ 2.1 billion remained available for future repurchases, when considered on a settlement date basis. 21 Table of Contents Coinbase Global, Inc. Notes to Condensed Consolidated Financial Statements (Unaudited) 15. STOCK-BASED COMPENSATION Stock options The following is a summary of stock option activity, including performance-based options (in thousands, except per share and years data): Weighted Average Options Outstanding Exercise Price Per Share Remaining Contractual Life (Years) Aggregate Intrinsic Value Balance at January 1, 2026 19,700 $ 25.58 4.3 $ 3,950,983 Exercised ( 899 ) 9.77 Balance at March 31, 2026 18,801 $ 26.33 4.2 $ 2,800,734 Exercisable at March 31, 2026 15,120 $ 27.03 4.1 $ 2,244,443 Vested and expected to vest at March 31, 2026 15,120 $ 27.03 4.1 $ 2,244,443 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 Shares Fair Value (1) Number of Shares Fair Value (1) Balance at January 1, 2026 2,145 $ 247.04 643 $ 55.42 Granted 5,627 164.90 426 156.92 Vested ( 769 ) 256.38 ( 643 ) 55.70 Forfeited and cancelled ( 222 ) 179.68 — — Balance at March 31, 2026 6,781 $ 180.02 426 $ 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 March 31, 2026 2025 Statements of Operations Technology and development $ 160,641 $ 108,092 Sales and marketing 14,811 14,905 General and administrative 72,603 67,732 Total stock-based compensation expense $ 248,055 $ 190,729 Balance Sheets Software and equipment, net (1) $ 4,397 $ 16,565 _______________ (1) Represents capitalized stock-based compensation that was recorded to Software and equipment, net during the periods presented. See Note 12. Condensed Consolidated Balance Sheets Details for additional details. As of March 31, 2026, there was total unrecognized compensation cost of $ 1.1 billion and $ 141.3 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 1.5 22 Table of Contents Coinbase Global, Inc. Notes to Condensed Consolidated Financial Statements (Unaudited) years and 3.3 years, respectively. Unrecognized compensation cost for all other stock-based compensation awards was immaterial as of March 31, 2026. 16. 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 March 31, 2026 2025 Technology and development Employee-related (1) $ 348,123 $ 232,348 Website hosting and infrastructure 90,639 67,247 Amortization, depreciation, and impairment (2) 47,913 32,012 Other (3) 38,973 23,761 Total technology and development $ 525,648 $ 355,368 Sales and marketing USDC rewards $ 113,427 $ 100,034 Marketing programs 83,907 104,970 Employee-related (1) 39,378 33,456 Other (4) 30,014 8,823 Total sales and marketing $ 266,726 $ 247,283 General and administrative Employee-related (1) $ 193,361 $ 163,137 Professional services 49,624 58,176 Customer support (5) 33,265 70,455 Other (6) 99,844 102,578 Total general and administrative $ 376,094 $ 394,346 _______________ (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, taxes, licenses, fees, and consulting, as well as depreciation and intangible asset impairment expenses. (5) Excludes employee-related and professional services expenses. (6) Comprises largely costs of taxes, licenses, and fees, contract resources, settlement costs, and travel. Also includes amortization, depreciation, and intangible asset impairments, none of which are individually material. Other (income) expense, net consisted of the following (in thousands): Three Months Ended March 31, 2026 2025 Gains on investments, net (1) $ ( 46,797 ) $ ( 3,327 ) Other ( 14,844 ) 9,515 Total other (income) expense, net $ ( 61,641 ) $ 6,188 _______________ (1) Comprises gains on Marketable and Strategic investments, excluding Crypto assets held for investment. For the three months ended March 31, 2026 and 2025, the amount includes $ 73.9 million and $( 18.3 ) million, respectively, in realized net gains (losses), and $ 39.3 million and $ 22.4 million, respectively, in unrealized net gains on equity securities still held at the end of each period. See Note 13. Fair Value Measurements for additional details. 23 Table of Contents Coinbase Global, Inc. Notes to Condensed Consolidated Financial Statements (Unaudited) 17. INCOME TAXES The Company’s effective tax rate (“ETR”) for the three months ended March 31, 2026 and 2025 was 15.2 % and 20.4 %, respectively. The ETR of 15.2 % for the three months ended March 31, 2026 was lower than the U.S. statutory rate of 21.0 %, primarily due to the impact of non-deductible expenses (including stock-based compensation and certain non-US losses) on the Company’s pre-tax loss, partially offset by state taxes. The following is a supplemental schedule of cash paid for income taxes (in thousands): Three Months Ended March 31, 2026 2025 Cash paid during the period for income taxes, net of refunds $ 14,375 $ 36,092 As of March 31, 2026, the Company had a net deferred tax asset balance of $ 647.7 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. 18. NET (LOSS) INCOME PER SHARE The computation of Net (loss) income p er share, including the weighted-average shares outstanding (“WASO”) used in the computation, is as follows (in thousands, except per share amounts): Three Months Ended March 31, 2026 2025 Numerators Net (loss) income attributable to common shareholders, basic and diluted $ ( 394,117 ) $ 65,608 Denominators WASO - basic 264,775 253,878 Weighted-average effect of potentially dilutive shares: Stock options — 15,823 Other — 1,550 WASO - diluted 264,775 271,251 Net (loss) income per share attributable to common shareholders: Basic $ ( 1.49 ) $ 0.26 Diluted $ ( 1.49 ) $ 0.24 The rights, including the liquidation and dividend rights, of the holders of Class A common stoc k and Class B common stock are identical, except with respect to voting. As a result, the undistributed earnings are allocated on a proportionate basis and the resulting income or loss per share will, therefore, be the same for both Class A common stock and Class B common stock on an individual or combined basis. 24 Table of Contents Coinbase Global, Inc. Notes to Condensed Consolidated Financial Statements (Unaudited) The following potenti ally dilutive shares were not included in the calculation of diluted shares outstanding as the effect would have been anti-dilutive, or in the case of performance awards, as the issuance of such shares is contingent upon the satisfaction of certain conditions which were not satisfied by the end of the reporting period (in thousands): Three Months Ended March 31, 2026 2025 Equity awards (1) 26,433 8,088 Convertible notes 14,329 7,229 Total 40,762 15,317 __________________ (1) Includes shares under the Employee Stock Purchase Plan. 19. COMMITMENTS AND CONTINGENCIES Crypto assets and payment stablecoins on platform The Company is obligated to securely store all crypto assets and payment stablecoins held or managed on behalf of customers in digital wallets on the Company’s platform, including those within the Company’s custody services and all other assets for which the Company holds full keys. As such, the Company may be liable to its users for losses arising from the Company’s failure to secure these assets from theft or loss. The Company has not incurred any losses related to such obligations and therefore has not accrued any liabilities as of March 31, 2026 and December 31, 2025. The Company holds full keys to crypto assets and payment stablecoins held or managed on behalf of its customers totaling $ 294.4 billion and $ 376.1 billion at fair value at March 31, 2026 and December 31, 2025, respectively. These assets are not recognized in the Condensed Consolidated Balance Sheets. Similarly, as the Company has an obligation to securely store all of these assets, it has a corresponding unrecognized liability of $ 294.4 billion and $ 376.1 billion at March 31, 2026 and December 31, 2025, respectively. Since the risk of loss is remote, the Company did not recognize a contingent liability at March 31, 2026 or December 31, 2025. The Company has no reason to believe it will incur any expense associated with such potential liability because (i) it has no known or historical experience of claims to use as a basis of measurement, (ii) it accounts for and continually verifies the amount of crypto assets within its control, and (iii) it has established security around custodial product private keys to minimize the risk of theft or loss. Indemnifications In the event any registrable securities are included in a registration statement, the Company’s Amended and Restated Investors’ Rights Agreement (the “IRA”) entered into with certain of the Company’s shareholders provides indemnity to each shareholder, their partners, members, officers, directors, and shareholders and certain of their advisors; each underwriter, if any; and each person who controls each shareholder or underwriter, against any damages incurred in connection with investigating or defending any claim or proceeding arising as a result of such registration from which damages may result. The Company will reimburse each such party for any legal and any other expenses reasonably incurred, provided that the Company will not be liable in any such case to the extent the damages arise out of or are based upon any actions or omissions made in reliance upon and in conformity with written information furnished by or on behalf of such shareholder or underwriter and stated to be specifically for use therein. The Company also has indemnity agreements with certain officers and directors of the Company pursuant to which the Company must indemnify the officer or director against all expenses, judgments, fines, and amounts paid in settlement reasonably incurred in connection with a third party proceeding, if the indemnitee acted in good faith and in a manner reasonably believed to be in or not opposed to the best interests of the Company, and in the case of a criminal proceeding, had no reasonable cause to believe the indemnitee’s conduct was unlawful. 25 Table of Contents Coinbase Global, Inc. Notes to Condensed Consolidated Financial Statements (Unaudited) It is not possible to determine the maximum potential exposure under these indemnification agreements: (i) because the facts and circumstances involved in each claim are unique and the Company cannot predict the number or nature of claims that may be made; (ii) due to the unique facts and circumstances involved in each particular agreement; and (iii) due to the requirement for a registration of the Company’s securities before any of the indemnification obligations contemplated in the IRA become effective. The Company has also provided indemnities or similar commitments on standard commercial terms in the ordinary course of business. Legal and regulatory proceedings The Company has been, currently is, and may from time to time become subject to claims, arbitrations, individual and class action lawsuits with respect to a variety of matters, including employment, consumer protection, intellectual property, privacy, information security, data protection, advertising, and securities. In addition, the Company has been, currently is, and may from time to time become subject to, government and regulatory investigations, inquiries, actions or requests, other proceedings and enforcement actions alleging violations of laws, rules, and regulations, both foreign and domestic. The Company reviews its lawsuits, regulatory investigations, and other legal proceedings on an ongoing basis and provides disclosure and recognizes loss contingencies in accordance with the loss contingencies accounting guidance. In accordance with such guidance, the Company establishes accruals for such matters when potential losses become probable and can be reasonably estimated. If the Company determines that a loss is reasonably possible and the loss or range of loss can be estimated, the Company discloses the possible loss in the Financial Statements . In October 2021, a purported class action captioned Underwood et al. v. Coinbase Global, Inc. , was filed in the U.S. District Court for the Southern District of New York (the “District Court”) against the Company alleging claims under Sections 5, 15(a)(1) and 29(b) of the Exchange Act, and violations of certain California and Florida state statutes. On March 11, 2022, plaintiffs filed an amended complaint adding Coinbase, Inc. and Brian Armstrong as defendants and adding causes of action, including alleging claims under Sections 5, 12(a)(1) and 15 of the Securities Act and violations of certain New Jersey state statutes. Among other relief requested, the plaintiffs sought injunctive relief, unspecified damages, attorneys’ fees and costs. On February 1, 2023, the District Court dismissed all federal claims (with prejudice) and state law claims (without prejudice) against Coinbase Global, Inc., Coinbase, Inc. and Brian Armstrong. Subsequently, on February 9, 2023, the plaintiffs appealed that ruling to the U.S. Court of Appeals for the Second Circuit (the “Court of Appeals”), and the parties completed briefing the appeal on September 13, 2023. Oral argument took place on February 1, 2024 and on April 5, 2024, the Court of Appeals issued a Summary Order affirming the District Court’s dismissal order with respect to the claims alleging violations of the Exchange Act, and reversing the District Court’s dismissal order with respect to the claims alleging violations of the Securities Act and violations of the state statutes. On June 27, 2024, defendants filed an answer to the amended complaint, and on July 29, 2024, the defendants filed a Motion for Judgment on the Pleadings requesting the District Court dismiss the remaining claims. On February 7, 2025, the District Court denied defendants’ Motion for Judgment on the Pleadings and allowed the case to proceed to bifurcated discovery, followed by summary judgment motions. The defendants continue to dispute the claims in this case and intend to vigorously defend against them. Based on the nature of the proceedings in this case, the outcome of this matter remains uncertain and the Company cannot estimate the potential impact, if any, on its business or Financial Statements at this time. In June 2023, the Company and Coinbase, Inc. were issued notices, show-cause orders, and cease-and-desist letters, and became the subject of various legal actions initiated by U.S. state securities regulators in the states of Alabama, California, Illinois, Kentucky, Maryland, New Jersey, South Carolina, Vermont, Washington and Wisconsin alleging violations of state securities laws with respect to staking services provided by Coinbase, Inc. In July 2023, the Company and Coinbase, Inc. entered into agreements with state securities regulators in California, New Jersey, South Carolina and Wisconsin, pursuant to which customers in those states will no longer be able to stake new funds, in each case 26 Table of Contents Coinbase Global, Inc. Notes to Condensed Consolidated Financial Statements (Unaudited) pending final adjudication of the matters. In October 2023, the Company and Coinbase, Inc. entered into a similar agreement with the Maryland state securities regulator. In March and April 2025, the Alabama, Kentucky, Illinois, South Carolina, and Vermont state securities regulators dismissed, vacated, rescinded, and/or withdrew their legal actions. The Company and Coinbase, Inc. dispute the claims of the state securities regulators and intend to vigorously defend against them. Based on the preliminary nature of these actions, the final outcome of these matters remains uncertain and the Company cannot estimate the potential impact on its business or Financial Statements at this time. An adverse resolution in these state matters could have a material impact on the Company’s business and Financial Statements. The Company has, from time to time, received investigative subpoenas and requests from regulators for documents and information, including about certain customer programs, operations, and existing and intended future products, including the Company’s processes for listing assets, the classification of certain listed assets, its staking programs, and its stablecoin and yield-generating products. Except as otherwise disclosed, the Company believes the ultimate resolution of existing legal and regulatory investigation matters will not have a material adverse effect on the financial condition, results of operations, or cash flows of the Company. However, in light of the uncertainties inherent in these matters, it is possible that the ultimate resolution of one or more of these matters may have a material adverse effect on the Company’s results of operations for a particular period, and future changes in circumstances or additional information could result in additional accruals or resolution in excess of established accruals, which could adversely affect the Company’s results of operations, potentially materially. Tax regulation Current tax rules related to crypto assets are evolving and require significant judgments to be made in interpretation of the law, including but not limited to the areas of income tax, information reporting, value added taxes, digital services tax, transaction level taxes and the withholding of tax at source. Further, it is possible that additional legislation or guidance may be issued by U.S. and non-U.S. governing bodies that may differ significantly from the Company’s practices or interpretation of the law, which could have unforeseen effects on the Company’s financial condition and results of operations, and accordingly, the Company is unable to determine an estimate of the possible loss or range of loss beyond amounts already accrued. As a result, the Company may have exposure to additional tax liabilities that could have an adverse effect on the Company’s operating results and financial condition. Other commitments During the three months ended March 31, 2026, the Company completed a strategic equity investment for total consideration of $ 180.0 million, reducing its other commitments as of December 31, 2025 accordingly. 20. RELATED PARTY TRANSACTIONS Related party customer activity Certain of the Company’s directors, executive officers, and principal owners, including immediate family members, are users of the Company’s platform. The Company recognized the following from related party customer activity: • Total revenue of $ 1.8 million and $ 3.6 million during the three months ended March 31, 2026 and 2025, respectively; • Accounts receivable, net of $ 0.3 million and $ 0.4 million as of March 31, 2026 and December 31, 2025, respectively; and • Customer custodial funds and Customer custodial fund liabilities of each $ 32.2 million and $ 11.0 million as of March 31, 2026 and December 31, 2025, respectively. 27 Table of Contents Coinbase Global, Inc. Notes to Condensed Consolidated Financial Statements (Unaudited) Related party investments The Company made no strategic investments during the three months ended March 31, 2026, compared to $ 3.1 million during the comparative period of 2025, in investees in which certain related parties of the Company held an interest over 10%. 21. SUBSEQUENT EVENT On May 5, 2026, the Company announced a restructuring plan (the "Restructuring Plan") to (i) manage its operating expenses in response to current market conditions and (ii) optimize the Company’s operations for the AI era. The Restructuring Plan involves a reduction of the Company's workforce by approximately 700 employees. In connection with these actions, the Company estimates that it will incur approximately $ 50 million to $ 60 million in total restructuring expenses, substantially all of which are cash charges related to employee severance and other termination benefits. The Company expects to substantially complete execution of the Restructuring Plan, and to incur substantially all of the associated charges, in the second quarter of 2026.