Coinbase Global, Inc. (COIN) Q1 2025 Earnings Summary

Executive Summary

Coinbase delivered $2.03B total revenue and $1.96B net revenue in Q1 2025; GAAP diluted EPS was $0.24 as crypto investment losses weighed on earnings . Versus consensus, revenue and EPS missed; Adjusted EBITDA was $930M and Adjusted Net Income $527M, highlighting strong underlying operations .
Mix shifted: transaction revenue fell 19% q/q to $1.26B amid lower fee mix and derivatives incentives, while subscription and services grew 9% q/q to $698M led by stablecoin revenue (+32% q/q to $298M) and Coinbase One .
Q2 2025 outlook guides subscription and services revenue to $600–$680M and transaction expenses mid-teens of net revenue; tech/G&A $700–$750M and sales/marketing $215–$315M, reflecting softer crypto prices and tactical marketing spend .
Strategic catalysts: announced acquisition of Deribit (~$2.9B; $700M cash + 11M shares), expanding crypto options leadership and derivatives market share ; S&P 500 inclusion effective May 19, 2025, likely driving index-related demand .

What Went Well and What Went Wrong

What Went Well
- Stablecoin monetization: USDC revenue rose 32% q/q to $298M; average USDC in Coinbase products up 49% q/q to $12.3B; off-platform USDC $41.9B—demonstrating ecosystem scale . “USDC… saw continued momentum, with its market cap reaching new all-time highs of over $60 billion” .
- Subscription resilience: Subscription and services revenue grew 9% q/q to $698M, with Coinbase One subscribers reaching new highs, including uptake of Coinbase One Premium ($300/month) .
- Derivatives and platform innovation: ~$804B global derivatives volume with market share gains; launched Verified Pools to enhance onchain liquidity safety; Portfolio Margin 2.0 for institutional leverage; Flashblocks testnet for sub-second blocks . CEO: “We drove over $800 billion in global derivatives trading volume” .
What Went Wrong
- Fee mix and incentives compressed transaction revenue: Institutional transaction revenue down 30% q/q despite only 9% volume decline, driven by lower-fee spot mix and derivatives rebates netted against revenue .
- Crypto investment losses hit GAAP earnings: $596.7M losses on crypto assets held for investment drove GAAP net income to $66M and diluted EPS $0.24, despite strong adjusted profitability .
- Macro headwinds: Management flagged softer trading trends entering Q2, with ETH down ~36% and SOL down ~25% vs Q1 averages, implying lower blockchain rewards and subscription components .

Financial Results

Metric	Q1 2024	Q3 2024	Q4 2024	Q1 2025
Net Revenue ($USD Millions)	1,587.7	1,128.6	2,197.0	1,960.3
Total Revenue ($USD Millions)	1,637.6	1,205.2	2,271.6	2,034.3
Net Income ($USD Millions)	1,176.2	75.5	1,291.2	65.6
Diluted EPS ($USD)	4.40	0.28	4.68	0.24
Adjusted EBITDA ($USD Millions)	1,014.3	448.6	1,289.0	929.9
Transaction Expense (% of Net Revenue)	14%	15%	14%	15%

Segment breakdown – Transaction revenue

Metric ($USD Millions)	Q1 2024	Q3 2024	Q4 2024	Q1 2025
Consumer, net	935.2	483.3	1,347.1	1,095.5
Institutional, net	85.4	55.3	141.3	98.9
Other transaction revenue, net	56.1	34.0	67.6	67.8
Total Transaction Revenue	1,076.7	572.5	1,556.0	1,262.2

Subscription and services breakdown

Metric ($USD Millions)	Q1 2024	Q3 2024	Q4 2024	Q1 2025
Stablecoin revenue	197.3	246.9	225.9	297.5
Blockchain rewards	150.9	154.8	214.9	196.6
Interest & finance fee income	66.7	64.0	65.7	63.1
Other subscription & services	96.0	58.7	134.6	140.9
Total Subscription & Services	510.9	556.1	641.1	698.1

KPIs – Trading volume

KPI	Q1 2024	Q3 2024	Q4 2024	Q1 2025
Consumer Trading Volume ($USD Billions)	56	34	94	78
Institutional Trading Volume ($USD Billions)	256	151	345	315
Total Spot Trading Volume ($USD Billions)	312	185	439	393

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance / Actual	Change
Subscription & Services Revenue ($M)	Q1 2025	$685–$765	$698 actual	In line (near midpoint)
Transaction Expenses (% of net revenue)	Q1 2025	Mid-to-high teens	15% actual	In line
Tech & Dev + G&A ($M, incl. SBC)	Q1 2025	$750–$800 incl. ~$190 SBC	$750 incl. $176 SBC	Met low end
Sales & Marketing ($M, incl. SBC)	Q1 2025	$235–$375 incl. ~$16 SBC	$247 incl. $15 SBC	In range (low end)
Subscription & Services Revenue ($M)	Q2 2025	—	$600–$680	Lower vs Q1 guidance midpoint
Transaction Expenses (% of net revenue)	Q2 2025	—	Mid-teens (mix dependent)	Maintained framework
Tech & Dev + G&A ($M, incl. SBC)	Q2 2025	—	$700–$750 incl. ~$180 SBC	Lower vs Q1 guidance
Sales & Marketing ($M, incl. SBC)	Q2 2025	—	$215–$315 incl. ~$15 SBC	Lower vs Q1 guidance

Earnings Call Themes & Trends

Topic	Q3 2024 (Q-2)	Q4 2024 (Q-1)	Q1 2025 (Current)	Trend
Technology initiatives (trading, infra)	Expanding US/international derivatives; Base is #1 L2; cbBTC launch	More perpetual listings; Coinbase 50 Index; margin loans	Portfolio Margin 2.0; Verified Pools; Flashblocks testnet	Increasing product velocity
Macro/tariffs	Lower avg crypto prices; subdued volatility	Stronger market; post-election momentum	Volatility early then decline; macro tariff uncertainty; April spot vol -12% m/m	Mixed → cautious Q2
Product performance (USDC, subs)	USDC on-platform balances grew; subs stable	Subs +15% q/q; Coinbase One growth	USDC revenue +32% q/q; Coinbase One Premium uptake	Sustained subscription strength
Regional expansion	Foundations in multiple markets	Licensing momentum; UK/Argentina progress	VASP in Argentina; FIU in India; largest FCA-registered VASP in UK	Accelerating international scale
Regulatory/legal	Ongoing SEC discovery; advocacy	Appellate progress; SAB 121 repeal; EO on digital assets	SEC case dismissed with prejudice; Executive actions on Bitcoin reserve	Positive clarity momentum
Derivatives & M&A	Building derivatives suite	Deepening derivatives; institutional features	Announced Deribit acquisition; global options leadership	Step-change in derivatives

Management Commentary

Strategic positioning: “Coinbase delivered across the board in Q1… $2 billion [revenue] with $930 million in adjusted EBITDA, demonstrating… resilience” — Brian Armstrong .
Derivatives expansion: “We drove over $800 billion in global derivatives trading volume… acquisition of Deribit… makes Coinbase the #1 crypto derivative platform globally by open interest” — Brian Armstrong .
Revenue mix dynamics: “Institutional transaction revenue was down 30%… driven by growth in derivatives… rebates/incentives [contra revenue], and spot mix shift toward market makers” — Alesia Haas .
Adjusted metrics clarity: “Introducing a new profitability metric, adjusted net income… GAAP net income excluding tax-adjusted impact of crypto investment portfolio gains or losses… $527 million” — Alesia Haas .
Outlook caution and discipline: “Macro uncertainty… may contribute to softer crypto trading markets and lower asset prices… We caution extrapolating monthly results” — Alesia Haas .

Q&A Highlights

Deribit accretion and cross-sell: Management expects Deribit to be adjusted EBITDA accretive (pre-purchase accounting), with integrated options/futures driving higher share and efficiency for traders .
USDC economics and partnerships: Coinbase receives 100% of reserve income for USDC in eligible products and 50% of off-platform economics post issuer fees; adding partners like Binance aims to expand USDC TAM and liquidity .
TradFi engagement: Coinbase powers custody/trading/stablecoin infrastructure for large institutions; management sees banks integrating crypto and prefers shared-economics network effects over siloed stablecoins .
Regulatory stance: No current plans for a bank charter; preference for fully reserved models and faster product velocity under non-bank structure .
Derivatives incentives: Continued rebates to build market share; anticipated $30–$40M q/q impact to institutional transaction revenue in Q2 .

Estimates Context

Metric	Q1 2025 Consensus	Q1 2025 Actual
Revenue ($USD)	$2,085.3M*	$1,960.3M
Primary EPS ($USD)	$1.90*	$0.24
EBITDA ($USD)	$932.4M*	$62.3M*

Values retrieved from S&P Global. Note: Coinbase emphasizes Adjusted EBITDA of $929.9M for Q1 2025, which excludes gains/losses on crypto assets held for investment; the large GAAP/standardized EBITDA delta reflects $596.7M pre-tax losses on crypto investment assets in the quarter . Misses versus consensus were driven by fee mix/derivatives incentives compressing transaction revenue and substantial crypto investment losses depressing GAAP EPS .

Key Takeaways for Investors

Underlying profitability remains robust: $930M Adjusted EBITDA and $527M Adjusted Net Income despite GAAP EPS headwinds from crypto investment losses; focus on adjusted metrics for core performance .
Revenue mix pivot continues: Subscription and services at $698M with USDC flywheel scaling; watch ETH/SOL price trajectories for blockchain rewards pressure in Q2 .
Derivatives strategy is a near-term drag, long-term growth driver: Incentives reduce institutional net revenue short term, but Deribit adds options leadership and accelerates market share and durability of trading revenues .
Q2 guide implies softer conditions: Subscriptions $600–$680M and mid-teens transaction expense signal tighter unit economics; April transaction revenue was ~$240M—avoid straight-line extrapolation .
Index catalyst: S&P 500 inclusion on May 19 likely spurs passive inflows and broadens investor base .
Operational discipline: Tech/G&A and S&M guidance trimmed sequentially; performance marketing and USDC rewards will flex with volatility and asset prices .
Watch regulatory momentum: SEC case dismissal and executive actions improve clarity; potential for expanded US products (e.g., perpetuals) as dialogue with CFTC advances .

Notes on non-GAAP: Adjusted EBITDA and Adjusted Net Income exclude gains/losses on crypto assets held for investment per company policy; reconcile to GAAP in shareholder letter **[1679788_0001679788-25-000088_q125shareholderletter.htm:28]**.

April update (Q2 intra-quarter): ~ $240M transaction revenue; spot volume down ~12% m/m, in line with global down ~13%; caution on extrapolation **[1679788_0001679788-25-000088_q125shareholderletter.htm:11]**.