Coinbase Global, Inc. (NASDAQ: COIN) shares are trading 5.6% lower in pre-market activity following the release of its fiscal 2026 second-quarter earnings report.

The cryptocurrency exchange operator reported that second-quarter revenue fell 19% year-over-year to $1.2 billion, marking the third consecutive quarter of declining revenue.

Coinbase Chief Executive Officer Brian Armstrong confirmed the company will renew its revenue-sharing agreement with Circle Internet Corp. next month under the existing terms. Coinbase serves as the largest distribution channel for Circle's USD-pegged stablecoin, USDC.

However, Coinbase recently joined the Open Standard alliance, backed by Stripe, Visa, and Mastercard, which issues a new stablecoin called OpenUSD. Following the renewal with Circle, Coinbase will continue to retain 50% of all revenue generated from USDC held outside its platform, as well as 100% of revenue from USDC activity within its own ecosystem.

During the quarter, Coinbase's stablecoin business generated $292 million in revenue, a 5% decline year-over-year. The prediction markets segment saw a 106% sequential surge in revenue, reaching an annualized run rate above $100 million.

The company posted a net loss of $359 million for the quarter, compared to a net profit of $1.4 billion in the same period last year. Despite the losses, Coinbase reaffirmed its commitment to achieving positive adjusted EBITDA regardless of market conditions.