Coinbase(US:COIN)2025-10-30 20:12Financial 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].