Coinbase Q3 Earnings and Revenues Beat Estimates, Volumes Rise Y/Y

Core Insights - Coinbase Global, Inc. (COIN) reported third-quarter 2025 net operating earnings per share of $1.44, exceeding the Zacks Consensus Estimate by 39.8% and more than doubling year over year [1][9] Financial Performance - Total trading volume increased 59.4% year over year to 295 million, although it fell short of the Zacks Consensus Estimate of 320 million [3] - Total revenues reached $1.9 billion, surpassing the Zacks Consensus Estimate by 7.1% and reflecting a 55.1% year-over-year increase driven by higher transaction and subscription revenues [3] - Total transaction revenues rose 82.7% year over year to $1 billion, attributed to increased consumer and institutional transaction revenues, exceeding the Zacks Consensus Estimate of $979 million [4] - Total subscription and services revenues grew 34.3% year over year to $747 million, supported by strong inflows and all-time highs in various metrics, beating the Zacks Consensus Estimate of $712 million [5] - Total operating expenses increased 29.2% to $1.4 billion, influenced by higher transaction, technology, development, sales, marketing, and administrative expenses [6] - Adjusted EBITDA improved 78.5% year over year to $800.6 million [6] Financial Position - Coinbase ended the third quarter with cash and cash equivalents of $8.7 billion, a 1.5% increase from the end of 2024 [7] - Long-term debt rose 40.1% from the end of 2024 to $5.9 billion, while shareholders' equity increased 55.9% to $12.1 billion [7] Share Repurchase Program - In October 2025, the board of directors increased the share repurchase authorization from $1 billion to $2 billion, expanding the scope to include a portion of long-term debt [8] Q4 2025 Outlook - Coinbase anticipates subscription and services revenues to range between $710 million and $790 million, driven by growth in USDC market capitalization and Coinbase One [9] - Transaction expenses are expected to be in the mid-teens as a percentage of net revenues [10] - Technology and development, along with general and administrative expenses, are projected to be between $925 million and $975 million, influenced by headcount growth and acquisitions [10] - Sales and marketing expenses are expected to increase quarter over quarter to between $215 million and $213 million [10]