Coinbase(COIN) - 2025 Q4 - Annual Results

Financial Performance - Coinbase achieved total revenue growth of 9% year-over-year (Y/Y) to $7.2 billion in 2025, with Q4 total revenue at $1.8 billion, down 5% quarter-over-quarter (Q/Q) [11]. - Total revenue for the year ended December 31, 2025, was $7,181,325, an increase of 9.4% compared to $6,564,028 in 2024 [116]. - Net loss for the year ended December 31, 2025, was $1,260,327, compared to a net income of $2,579,066 in 2024 [116]. - Operating income for the year ended December 31, 2025, was $1,435,441, down from $2,307,160 in 2024 [116]. - Net cash provided by operating activities for the year ended December 31, 2025, was $2,426,383, compared to $3,103,935 in 2024 [120]. - The company reported a loss of $476,153 on crypto assets held for investment in Q1'25, which contrasts with a gain of $596,651 in Q4'24, indicating volatility in this segment [125]. - Adjusted net income for Q1'25 was $931,288, while the adjusted net income per share (diluted) was $3.37, reflecting a strong performance compared to FY'24's adjusted net income of $2,073,353 [125]. - Adjusted EBITDA for Q1'25 was $929,868, a decrease from Q4'24's $1,289,048, highlighting potential challenges in maintaining growth momentum [21]. Revenue Streams - Transaction revenue for 2025 totaled $4.1 billion, growing 2% Y/Y, while Q4 transaction revenue was $983 million, down 6% Q/Q [31]. - The number of Paid Coinbase One Subscribers reached an all-time high, contributing to the growth in subscription and services revenue, which totaled $727 million in Q4, down 3% Q/Q [11][31]. - Subscription and services revenue in Q4 was $727 million, down 3% Q/Q due to lower average crypto asset prices [37]. - Q4 stablecoin revenue was $364 million, up 3% Q/Q, driven by higher average USDC held in Coinbase products [42]. - Average USDC held in Coinbase products reached a new all-time high of $17.8 billion, up 18% Q/Q [42]. Market Position and Growth - Coinbase Total Trading Volume grew 156% Y/Y to $5.2 trillion in 2025, with the company's crypto trading volume market share doubling [3][23]. - Coinbase achieved a 4x year-over-year increase in U.S. derivatives market share, driven by the launch of 24/7 U.S. perpetual-style futures [90]. - Quarterly derivatives trading volume reached all-time highs in Q4, following the acquisition of Deribit, which positioned Coinbase as the global leader in crypto derivatives by open interest and options volume [90]. - The company has expanded its regulated market access internationally, becoming the largest FCA-registered VASP in the UK and completing its pan-European expansion under MiCA [85]. Expenses and Liabilities - Total operating expenses for Q4 were $1.5 billion, up 9% Q/Q, with technology & development, general & administrative, and sales & marketing expenses increasing 14% Q/Q to $1.3 billion [11]. - Operating expenses for 2025 were $5.7 billion, up 35% Y/Y, largely driven by USDC rewards and marketing programs [56]. - Total liabilities increased to $14,878,774 as of December 31, 2025, from $12,265,109 in 2024 [113]. - Customer custodial fund liabilities decreased to $5,347,428 as of December 31, 2025, from $6,158,949 in 2024 [113]. Strategic Initiatives - Coinbase plans to focus on three priorities in 2026: growing the Everything Exchange, scaling stablecoins and payments infrastructure, and enhancing DeFi integrations [4]. - The company aims to invest in key priorities for 2026, focusing on product momentum and expanding adoption [99]. - The company repurchased a total of 8.2 million shares since November 2025, with an additional $2.0 billion share repurchase authorization approved in January 2026 [5]. - The company repurchased approximately 3.3 million shares for $850 million in Q4, with an additional 4.9 million shares repurchased for $895 million as of February 10, 2026 [67]. Asset Management - The company ended 2025 with $11.3 billion in cash and cash equivalents, including payment stablecoins classified as cash equivalents [12]. - Cash and cash equivalents increased to $11,285,452 as of December 31, 2025, from $9,308,266 in 2024 [121]. - Total assets grew to $29,671,832 as of December 31, 2025, compared to $22,541,951 in 2024 [113]. - Average USDC held in Coinbase products reached all-time highs, contributing to record stablecoin revenue [3]. - BTC Borrow originations exceeded $1.5 billion by Q4, indicating strong customer utilization of onchain financing [92]. Technology and Infrastructure - Base App infrastructure upgrades improved transaction speeds to ~200ms block times, facilitating consumer-grade experiences [98]. - USDC distribution and utility were scaled across Coinbase products, enhancing its role as a trading collateral and payment asset [98]. - The launch of stock and ETF trading within the Coinbase app provided early access users with 3,000 stocks, expected to increase to nearly 10,000 by late February [91]. - Assets on Platform increased 3x over the last 3 years, marking the 9th consecutive quarter of native unit growth [40][38].