Coinbase reported $1.9 billion in third-quarter revenue on Thursday, a 26% increase quarter-over-quarter that slightly surpassed Wall Street forecasts. Analysts expected the San Francisco-based crypto exchange to disclose $1.8 billion in sales, reflecting a 50% increase from a year ago, according to Yahoo Finance. Coinbase disclosed a Q3 earnings per share of $1.50, coming in above analysts’ forecasts of $1.10 per share. That translated into $433 million in net income for the third quarter, falling sequenti ...

Company Strategy - Coinbase CEO Brian Armstrong states "Coinbase is long bitcoin", indicating a bullish stance on Bitcoin [1] - Coinbase increased its Bitcoin holdings by 2,772 BTC in Q3 and continues to purchase more [1]

Coinbase (COIN) posted a stronger-than-expected third quarter, driven by a surge in trading activity, a rebound in asset prices and continued growth in its subscription and services business. The U.S.-based exchange reported total revenue of $1.9 billion, a 58% jump from $1.2 billion in the same period last year and higher than the $1.8 billion expected by FactSet analysts. Shares were up 1.5% in post-market trading, though the exchange warned investors not to make future assumptions about current results ...

JUST IN: Coinbase announced it purchased $299 million #Bitcoin in Q3, 2025 💥 https://t.co/7axMBTxFw0 ...

JUST IN: Coinbase buys $299 million worth of Bitcoin in Q3, 2025. https://t.co/bAvWzBQVyv ...

🚨 BREAKING: 🇺🇸 Coinbase bought $300 MILLION Bitcoin in Q3 🔥 https://t.co/Ex5FvmR00n ...

JUST IN: Coinbase $COIN reports $1.86 billion in revenue for Q3, higher than expectations. ...

Financial Performance - For Q3 2025, Coinbase reported net revenue of $1.8 billion, a 64% increase from $1.1 billion in Q3 2024, and for the nine months ended September 30, 2025, net revenue was $5.2 billion, up from $4.1 billion in the same period of 2024[154]. - Net income for Q3 2025 was $432.6 million, a 477% increase compared to $75.5 million in Q3 2024, and for the nine months, net income was $1.9 billion, up 50% from $1.3 billion[155]. - Adjusted EBITDA for Q3 2025 was $800.7 million, an increase of 78% from $448.6 million in Q3 2024, and for the nine months, it was $2.2 billion, a 9% increase from $2.1 billion[155]. User Engagement - Monthly Transacting Users (MTUs) increased to 9.3 million in Q3 2025, a 19% rise from 7.8 million in Q3 2024, and for the nine months, MTUs grew to 9.2 million, up 15% from 8.0 million[157]. - Consumer transaction revenue for Q3 2025 was $843.5 million, a 75% increase from $483.3 million in Q3 2024, driven by a 74% increase in consumer Trading Volume[171]. Trading and Assets - Trading Volume for Q3 2025 was $295 billion, a 59% increase from $185 billion in Q3 2024, and for the nine months, it rose to $925 billion, up 28% from $723 billion[168]. - Assets on Platform (AOP) reached $516 billion as of September 30, 2025, a 95% increase from $264 billion in 2024, driven primarily by significant growth in Bitcoin and USDC holdings[163]. Revenue Streams - Subscription and services revenue for Q3 2025 reached $746.7 million, a 34% increase from $556.1 million in Q3 2024[173]. - Stablecoin revenue increased by $107.8 million (44%) in Q3 2025 compared to Q3 2024, totaling $354.7 million[173]. - The percentage of subscription and services revenue to net revenue was 42% in Q3 2025, down from 49% in Q3 2024[173]. Expenses - Total transaction expenses rose to $253.3 million in Q3 2025, a 47% increase from $171.8 million in Q3 2024[179]. - Sales and marketing expenses increased by 58% to $260.3 million in Q3 2025, up from $164.8 million in Q3 2024[184]. - Technology and development expenses for Q3 2025 were $430.6 million, a 14% increase from $377.4 million in Q3 2024[183]. - General and administrative expenses rose by 27% to $418.4 million in Q3 2025, compared to $330.4 million in Q3 2024[187]. Market Position and Strategy - The acquisition of Deribit in August 2025 is expected to enhance Coinbase's position in the crypto derivatives market, alongside the launch of U.S. perpetual futures[152]. - Coinbase plans to adjust its expense base dynamically in response to market conditions, anticipating increases in technology and development expenses in Q4 2025 due to the full impact of recent acquisitions[156]. Investment and Cash Flow - As of September 30, 2025, total cash and cash equivalents amounted to $8.68 billion, an increase from $8.54 billion as of December 31, 2024[209]. - Net cash used in operating activities decreased by $2.23 billion to $(638.77) million for the nine months ended September 30, 2025, compared to $1.59 billion in 2024[222][223]. - Net cash provided by financing activities increased by $1.20 billion to $1.90 billion, primarily due to a $1.6 billion net increase from long-term debt issuance[225]. Regulatory and Compliance - The company is compliant with regulatory capital requirements of approximately $1.9 billion, met by a combination of cash and certain crypto assets held[221]. - The company does not expect the One Big Beautiful Bill Act to have a material impact on its effective tax rate in 2025[200]. Risks and Losses - Gains on crypto assets held for operations showed a net loss of $35.7 million in Q3 2025, compared to a loss of $0.1 million in Q3 2024[190]. - Losses on crypto assets held for investment, net, were $(423,903) for the three months ended September 30, 2025, compared to $120,507 in 2024, indicating significant volatility in asset values[196]. - A hypothetical 50% change in crypto asset prices would impact the value of crypto assets held for investment by $1.3 billion as of September 30, 2025[232].

Core Insights - Coinbase Global exceeded analysts' profit expectations for Q3, driven by increased trading volumes due to heightened volatility in digital assets, resulting in a share price increase of over 3% post-announcement [1][2] Financial Performance - Transaction revenue for Coinbase rose to $1.05 billion in Q3, up from $572.5 million year-over-year [2] - The company reported a net income of $432.6 million, or $1.50 per share, compared to $75.5 million, or 28 cents per share, a year earlier, surpassing analysts' expectations of $1.06 per share [3] Strategic Developments - Coinbase completed the acquisition of Deribit in Q3, enhancing its position in the derivatives market, where it has historically been less competitive [3] - Deribit holds over 75% market share in options, primarily outside the U.S., presenting growth opportunities in the U.S. options market [4] Subscription and Services Growth - Revenue from Coinbase's subscription and services unit increased by 34.3% to $746.7 million in Q3, with stablecoin revenue rising to $354.7 million from $246.9 million a year earlier [5] - The company anticipates continued growth in stablecoin adoption, supported by favorable policies and increasing interest from financial institutions [6] Market Position - Coinbase is described as "cash-rich and growth-ready," indicating a strong financial position to capitalize on future opportunities [7]

Core Insights - Coinbase Global reported a significant increase in third-quarter profit due to heightened volatility in digital assets, which led to increased trading volumes at the cryptocurrency exchange [1] Company Summary - The third-quarter profit for Coinbase Global saw a notable rise, attributed to the increased trading activity driven by market volatility in digital assets [1] Industry Summary - The cryptocurrency exchange industry is experiencing heightened trading volumes as a result of increased volatility in digital assets, positively impacting companies like Coinbase Global [1]