Coinbase (COIN) reported disappointing Q3 results today, missing analyst expectations on earnings and revenue, which led to a nearly 7% drop in its stock during after-hours trading.

The crypto exchange revealed its total revenue for the quarter was $1.2 billion, falling short of the expected $1.26 billion according to FactSet data. Additionally, its earnings per share of $0.28 did not meet the anticipated $0.45.

Despite the setback, Coinbase announced a share buyback of up to $1 billion depending on market conditions. Vice President Anil Gupta mentioned, "Really solid results across the board, I think quarter to quarter, you definitely see volatility playing a role in trading revenues and we saw that play out with softer market conditions in Q3 but we’re overall happy with the results."

The firm’s primary challenge came from weaker market conditions which contributed to a 27% decline in transaction fees. Year-to-date, shares are still up approximately 22% as optimisms rise within the digital asset market.

For more details, read the full report here.