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Coinbase Global, Inc. (COIN) Q3 2025 Earnings Summary

Executive Summary

  • Solid quarter with revenue and profitability improvement Q/Q: Net revenue $1.79B (+26% Q/Q) and diluted EPS $1.50, with Subscription & Services (S&S) revenue at $747M, above the high end of prior guidance; Adjusted EBITDA reached $801M .
  • Versus Wall St. (S&P Global): EPS beat (Actual $1.50 vs $1.10*), revenue was roughly in line/slight miss (Actual $1.79B vs $1.81B*), while EBITDA tracked below consensus (Actual EBITDA $503M* vs $721M*); management also reported non‑GAAP Adjusted EBITDA of $801M .
  • Mix drivers: Transaction revenue +37% Q/Q on stronger advanced retail and institutional derivatives (Deribit contributed $52M), while S&S +14% Q/Q on USDC and higher blockchain rewards amid ETH/SOL price gains .
  • Outlook/catalysts: Q4 S&S revenue guided to $710–$790M, October transaction revenue approx. $385M; expense step-up tied to Deribit/Echo and headcount; ongoing derivatives expansion, stablecoin adoption, and new partnerships (e.g., Citi) underpin the “Everything Exchange” narrative .

Note: Asterisked items (*) are Values retrieved from S&P Global.

What Went Well and What Went Wrong

  • What Went Well

    • Derivatives scale and integration: Deribit closed Aug 14; contributed $52M to Q3 revenue; combined Coinbase+Deribit derivatives notional >$840B; U.S. perpetuals launched and 24/7 futures trading expanded market share .
    • Stablecoin momentum: USDC market cap hit an all‑time high of $74B; average USDC balances in Coinbase products reached $15B; stablecoin revenue rose to $355M (+7% Q/Q) .
    • Operating discipline and profitability: Operating expenses declined 9% Q/Q to $1.39B; net income $433M; Adjusted Net Income $421M; Adjusted EBITDA $801M; data theft costs fell to $61M (vs $307M in Q2) .
    • Quote: “We continue to drive strong financial performance and build the Everything Exchange… Total revenue was $1.9B, Adjusted EBITDA was $801M” — Brian Armstrong .

  • What Went Wrong

    • Volume mix/underperformance vs spot: Total trading volume +24% Q/Q but underperformed spot markets due to lower stablecoin pair volumes; advanced retail mix lowered fee rate .
    • EBITDA below S&P expectations*: EBITDA actual $503M* vs $721M*; higher T&D/G&A and S&M from headcount and acquisitions, and lower contra-revenue rebates normalization impacted EBITDA; management highlights Adjusted EBITDA $801M .
    • Expense step-up ahead: Q4 T&D+G&A guided up to $925–$975M (incl. ~$220M SBC) and S&M $215–$315M; half of T&D+G&A increase from Deribit/Echo, remainder headcount; D&A also higher from intangibles .

Financial Results

Headline financials (USD; GAAP unless noted)

MetricQ3 2024Q4 2024Q1 2025Q2 2025Q3 2025
Net Revenue ($B)$1.129 $2.197 $1.960 $1.420 $1.793
Diluted EPS ($)$0.28 $4.68 $0.24 $5.14 $1.50
Net Income ($B)$0.075 $1.291 $0.066 $1.429 $0.433
Adjusted EBITDA ($B, Non‑GAAP)$0.449 $1.289 $0.930 $0.512 $0.801
Transaction Expenses (% of Net Rev)15% 14% 15% 17% 14%

Versus S&P Global consensus (Q3 2025)

MetricActualConsensus*Surprise
Net Revenue ($B)$1.793 $1.808*Slight miss
Diluted EPS ($)$1.50 $1.10*BEAT
EBITDA ($B)$0.503*$0.721*MISS

Note: Asterisked items (*) are Values retrieved from S&P Global.

Segment revenue breakdown (USD Millions)

MetricQ3 2024Q4 2024Q1 2025Q2 2025Q3 2025
Consumer Transaction Revenue483.3 1,347.1 1,095.5 649.9 843.5
Institutional Transaction Revenue55.3 141.3 98.9 60.8 135.0
Other Transaction Revenue34.0 67.6 67.8 53.5 67.7
Total Transaction Revenue572.5 1,556.0 1,262.2 764.3 1,046.3
Stablecoin Revenue246.9 225.9 297.5 332.5 354.7
Blockchain Rewards154.8 214.9 196.6 144.5 184.6
Interest & Finance Fee Income64.0 65.7 63.1 59.3 64.8
Other S&S Revenue90.4 134.6 140.9 119.5 142.7
Total S&S Revenue556.1 641.1 698.1 655.8 746.7
Net Revenue1,128.6 2,197.0 1,960.3 1,420.1 1,793.0

KPIs

Trading volume ($B)

MetricQ3 2024Q4 2024Q1 2025Q2 2025Q3 2025
Consumer34 94 78 43 59
Institutional151 345 315 194 236
Total185 439 393 237 295

USDC average balances in Coinbase products ($B)

MetricQ1 2025Q2 2025Q3 2025
Average USDC in Coinbase Products12.3 13.8 15.0

Context and drivers

  • Transaction revenue +37% Q/Q to $1.046B driven by advanced retail activity and institutional derivatives (Deribit), while total trading volume +24% Q/Q; Coinbase underperformed spot markets due to lower stablecoin pair volume .
  • S&S revenue +14% Q/Q to $747M on USDC growth and higher blockchain rewards (ETH +81% avg price, SOL +29%), partially offset by lower rewards rates .
  • OpEx down 9% Q/Q to $1.39B as data theft costs fell ($48M in Q3 vs $307M in Q2); T&D, G&A, S&M collectively +14% Q/Q to $1.11B on headcount and USDC rewards; Deribit added $30M to these lines .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent Guidance/ActualChange
Subscription & Services RevQ3’25$665–$745M $747M actual Exceeded high end
Transaction Expenses (% of Net Rev)Q3’25Mid‑teens 14% actual Slightly below midpoint
T&D + G&A (incl. SBC)Q3’25$800–$850M (incl. ~$210M SBC; later revised to add ~$10M Deribit) $849M (incl. $208M SBC) At high end
Sales & Marketing (incl. SBC)Q3’25$190–$290M (incl. ~$15M SBC) $260M (incl. $14M SBC) Within range
October Transaction RevenueQ4’25 (October)—≈$385M (October) New datapoint
Subscription & Services RevQ4’25—$710–$790M New
Transaction Expenses (% of Net Rev)Q4’25—Mid‑teens New
T&D + G&A (incl. SBC)Q4’25—$925–$975M (incl. ~$220M SBC) New (step‑up from Q3)
Sales & Marketing (incl. SBC)Q4’25—$215–$315M (incl. ~$14M SBC) New
Depreciation & AmortizationQ4’25—≈$70M (higher on acquisition intangibles) New

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1’25, Q2’25)Current Period (Q3’25)Trend
Everything Exchange & asset coverageQ1: Derivatives growth, 24/7 futures announced; DEX integration plans . Q2: 24/7 U.S. perpetuals launched; more spot assets; DEX integration planned .Expanded spot via DEX to 40k+ assets; 24/7 U.S. futures live; Deribit closed; >$840B derivatives notional .Accelerating
Stablecoin payments & USDCQ1: USDC cap >$60B; product integration & rewards; Shopify integration announced . Q2: USDC balances +13% Q/Q; Shopify live; Coinbase Business pilot .USDC cap $74B; avg $15B on‑platform; payments APIs/embedded wallets; Citi collaboration announced .Strengthening
Institutional/Custody & ETFsQ1: AUC avg $212B; ETF inflows . Q2: AUC $245.7B; 80%+ ETF custodian share .AUC reached $300B; primary custodian for 80%+ U.S. BTC/ETH ETF assets as of quarter-end .Growing
Derivatives incentives/rebatesQ1: Incentives offset some net revenue . Q2: Incentives to build OI .Scaling back rebates as liquidity grows; helps profitability .Profit mix improving
OpEx/HeadcountQ1: OpEx up on marketing/support . Q2: Data theft $307M; core OpEx down 2% .Q3 OpEx down 9% Q/Q; Q4 OpEx step-up (Deribit/Echo, headcount) .Mixed: normalize then step-up
Infrastructure resilienceQ2: Scaling Base; infra improvements .Per call, handled record activity Oct 10 without downtime; assessing multi‑cloud redundancy .Improving

Management Commentary

  • Strategy and scope: “We continue to drive strong financial performance and build the Everything Exchange... expanding spot coverage, growing our derivatives offering and laying the groundwork for new asset classes” — CEO Brian Armstrong .
  • Stablecoins: “In Q3, Coinbase customers held on average $15B of USDC… USDC reached an all‑time high of $74B market cap… payments are clearly the next big use case” — Management .
  • Non‑GAAP vs GAAP dynamics: CFO cited $424M gain from fair value remeasurement of crypto investments and $381M other expense largely from Circle mark; Adjusted Net Income $421M .
  • Expense outlook: “Q4 tech & dev and G&A $925–$975M… about half due to Deribit and Echo; remainder headcount growth; D&A ≈$70M in Q4 from acquisition intangibles” — CFO .

Q&A Highlights

  • Deribit integration and derivatives: Deribit had record volume in August; $52M revenue contribution; plan to integrate spot, perps, options under one roof with cross‑margining to boost capital efficiency .
  • Incentives and take rates: Scaling back derivatives rebates as liquidity strengthens; pricing stable; take rate interpretation complicated by Deribit addition and mix shifts .
  • Payments adoption: Building B2B payments via USDC, APIs, embedded wallets; over 1,000 businesses onboarded; collaboration with Citi to streamline on/off‑ramps and 24/7 payouts .
  • Infrastructure reliability: Operated without downtime during Oct 10 stress; weighing multi‑cloud investments while pushing automation in support and compliance .
  • M&A pace and regulatory clarity: Improved policy environment enabling more proactive M&A in trading and payments adjacencies .

Estimates Context

  • Revenue: Actual net revenue $1.793B vs S&P consensus $1.808B* (slight miss) .
  • EPS: Actual diluted EPS $1.50 vs S&P consensus $1.10* (beat) .
  • EBITDA: S&P EBITDA actual $503M* vs consensus $721M* (miss), while company’s Adjusted EBITDA (non‑GAAP) was $801M .
  • Implications: Estimate models likely need to reflect (i) stronger S&S revenue trajectory (Q4 guide $710–$790M) and USDC tailwinds, (ii) higher Q4 OpEx from M&A/headcount and higher amortization, and (iii) derivatives profitability with reduced incentives .

Note: Asterisked items (*) are Values retrieved from S&P Global.

Key Takeaways for Investors

  • EPS beat with strong operating leverage ex one‑offs; S&S revenue beat prior guidance and remains a durable growth pillar into Q4 .
  • Mix shift tailwinds: Advanced retail and institutional derivatives (including Deribit) re‑accelerated transaction revenue; scaling back incentives should aid margin quality .
  • Stablecoin/payment flywheel building: USDC levels at ATHs, products/APIs/embedded wallets plus Citi partnership expand the payments TAM and utility narrative .
  • Near‑term trade: Watch for Q4 OpEx step‑up from M&A/headcount and amortization; October transaction revenue ($385M) indicates a firm start to Q4 .
  • Medium‑term thesis: “Everything Exchange” breadth (spot, perps, options, custody) + Base infrastructure and stablecoin rails position COIN to monetize across trading, payments, and app ecosystem .
  • Risk checks: Volume sensitivity to crypto prices/mix; policy evolution; integration execution for Deribit; infra resiliency under peak loads .
  • Monitoring list: Q4 S&S delivery vs $710–$790M, OpEx discipline vs guide, derivatives share and rebate normalization, USDC growth trajectory, additional enterprise/payment wins .

Additional Reference Data

Capital & liquidity snapshot

  • $USD resources $11.9B at Q3-end (net of $7.2B LT debt, net $4.7B); crypto investments fair value $2.6B (investment) and $1.0B (collateral) .
  • Share count: Q3 weighted average fully diluted 292M; Deribit consideration included ~11M shares .

Other relevant Q3 press releases

  • Citi and Coinbase collaboration to boost digital asset payment capabilities for institutional clients .
  • Coinbase Prime and Figment expanded integration; $2B staked to date across PoS networks .

All citations:

  • Q3 2025 8‑K & Shareholder Letter: .
  • Q3 2025 Earnings Call: .
  • Q2 2025 8‑K & Letter: .
  • Q1 2025 8‑K & Letter: .
  • Q3 2025 press releases: Citi‑Coinbase collaboration ; Figment‑Prime staking integration .

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