Coinbase(US:COIN)2025-10-30 20:06Financial Performance - Total revenue for Q3 2025 was $1.9 billion, representing a 25% increase quarter-over-quarter (Q/Q) [10] - Transaction revenue reached $1.0 billion, up 37% Q/Q, while subscription and services revenue was $747 million, up 14% Q/Q [10] - Adjusted net income for Q3 was $421 million, with adjusted EBITDA at $801 million [10] - Net income in Q3 was $433 million, with adjusted net income at $421 million and adjusted EBITDA at $801 million [40] - Net revenue for Q3 2025 reached $1,792,984, a 58.7% increase from $1,128,597 in Q3 2024 [85] - Operating income for Q3 2025 was $480,532, compared to $169,513 in Q3 2024, reflecting a significant increase of 183.5% [85] - Net income for the nine months ended September 30, 2025, was $1,927,060, a 49.8% increase from $1,287,890 in the same period of 2024 [89] - Basic net income per share for Q3 2025 was $1.65, compared to $0.30 in Q3 2024, representing a 450% increase [85] Revenue Breakdown - Institutional transaction revenue surged to $135 million, a 122% increase Q/Q, driven by the acquisition of Deribit, which contributed $52 million in Q3 [22] - Blockchain rewards revenue increased by 28% Q/Q to $185 million, driven by rising average prices of ETH and SOL [32] - Interest and finance fee income was $65 million, up 9% Q/Q, with average loan balances across institutional financing products growing 25% Q/Q to $1.2 billion [33] - Other subscription and services revenue reached $143 million, up 19% Q/Q, while total operating expenses fell by $134 million or 9% Q/Q to $1.4 billion [34] - Q4 subscription and services revenue is expected to be between $710-$790 million, reflecting growth in USDC market capitalization and Coinbase One subscribers [50] Assets and Liabilities - Total assets on the platform reached $516 billion by the end of Q3 2025 [29] - The company had $11.9 billion in USD resources at the end of Q3, an increase of $2.6 billion or 28% Q/Q, primarily due to a $3.0 billion convertible debt issuance [43] - Total current assets increased to $22.09 billion as of September 30, 2025, up from $18.11 billion at the end of December 2024 [82] - Total assets reached $31.35 billion as of September 30, 2025, compared to $22.54 billion at the end of December 2024 [82] - Total stockholders' equity increased to $16.02 billion as of September 30, 2025, up from $10.28 billion at the end of December 2024 [83] - Current liabilities rose to $9.19 billion as of September 30, 2025, compared to $7.94 billion at the end of December 2024 [82] - Long-term debt increased to $5.93 billion as of September 30, 2025, from $4.23 billion at the end of December 2024 [82] Market Activity and Adoption - Average USDC held in Coinbase products reached an all-time high of over $15 billion, contributing to a total USDC market capitalization of $74 billion [3] - Average USDC balances off-platform increased by 12% Q/Q to $53 billion, indicating strong adoption and usage [30] - USDC market cap reached an all-time high of $74 billion in Q3, growing by $12 billion from the end of Q2, with Coinbase customers contributing significantly to this growth [69] - Average USDC balances across Coinbase products were $15 billion in Q3, indicating strong usage of stablecoins on the platform [69] - Network activity increased quarter-over-quarter, driven by trading, social, payments, and lending apps, with over 5 million tokens and 16 local-currency stablecoins in the ecosystem [69] Strategic Initiatives - The company launched cross-margining for institutional customers, delivering roughly 2x capital efficiency compared to competitors [62] - The Coinbase One Card has seen over $100 million in spend since launch, enhancing platform engagement with significant deposits from card members [62] - Base App entered beta in Q3, showing strong adoption as an onchain hub for trading, mini apps, social, chat, trading, and USDC payments [66] - The introduction of the Base and Solana bridge in testnet aims to facilitate asset movement between the two networks, with mainnet support expected in Q4 [69] Shareholder Information - The weighted average fully diluted share count for Q3 was 292 million, an increase of 5% Q/Q [42] - Basic weighted-average shares outstanding increased from 255,188 in Q2'25 to 262,831 in Q3'25, an increase of about 3.1% [94] - The diluted weighted-average shares outstanding increased from 278,913 in Q2'25 to 291,958 in Q3'25, an increase of about 4.7% [94] Cash Flow and Expenses - Cash and cash equivalents at the end of Q3 2025 totaled $14,305,255, compared to $11,617,013 at the end of Q3 2024, an increase of 23.4% [89] - Total operating expenses for the nine months ended September 30, 2025, were $4,238,508, up from $3,019,300 in 2024, indicating a 40.4% increase [85] - Stock-based compensation expense for the nine months ended September 30, 2025, was $608,958, down from $690,854 in the same period of 2024, a decrease of 11.8% [88] - Net cash used in operating activities for the nine months ended September 30, 2025, was $(638,768), compared to $1,592,226 in 2024 [89] - Non-cash consideration paid for business combinations in the nine months ended September 30, 2025, was $3,573,092, with no comparable figure for 2024 [91]