Coinbase Posts $394M Q1 Loss and Suffers 7-Hour AWS Outage
Coinbase swung to a net loss of $394 million in Q1 on revenue falling 31% to $1.41 billion. On May 7 an AWS US-EAST-1 data center overheating triggered a nearly seven-hour service outage, contributing to shares dropping over 3% premarket.
1. Q1 Financial Results
Coinbase reported Q1 2026 revenue of $1.41 billion, down 31% year-over-year, and recorded a net loss of $394 million after trading volumes declined with lower crypto prices.
2. AWS Outage Impact
On May 7 a thermal event at Amazon Web Services’ US-EAST-1 availability zone use1-az4 caused power loss to EC2 and EBS infrastructure, halting Coinbase transaction services for nearly seven hours and degrading its mobile app performance.
3. Workforce Reduction and Automation Focus
Earlier in the week Coinbase eliminated positions equivalent to about 14% of its roughly 5,000-person workforce, citing a strategic shift toward automation and artificial intelligence capabilities.
4. Market Reaction
Following the earnings miss and service disruption, Coinbase shares fell more than 3% in premarket trading as investors weighed the impact on revenue growth and platform reliability.