Coinbase(US:COIN)2026-02-12 23:32Financial Data and Key Metrics Changes - In 2025, total revenue reached $7.2 billion, a 9% year-over-year increase [14] - Subscription and services revenue hit $2.8 billion, up 23% year-over-year, and more than 5.5 times higher than the peak in 2021 [14][16] - Q4 total revenue was $1.8 billion, down 5% quarter-over-quarter [17] - Q4 transaction revenue was $983 million, down 6% quarter-over-quarter, while subscription and services revenue was $727 million, down 3% quarter-over-quarter [18] - Adjusted EBITDA in Q4 was $566 million, and adjusted net income was $178 million [19] - The company ended the year with $11.3 billion in cash and cash equivalents, and total available resources of approximately $14.1 billion [20] Business Line Data and Key Metrics Changes - The company has 12 products generating over $100 million in annualized revenue, with half of those exceeding $250 million [17] - Subscription and services revenue reached all-time highs, up 5.5 times from the peak in 2021 [16] - Derivatives volume and revenue hit all-time highs in Q4, indicating strong growth in this segment [9] Market Data and Key Metrics Changes - Global trading volume and market share doubled year-over-year, reaching new all-time highs [3] - The crypto market cap was down 11% quarter-over-quarter, but the company outperformed the market on total trading volume [16] Company Strategy and Development Direction - The company aims to grow the Everything Exchange, which integrates various asset classes including crypto, equities, and commodities [8] - Focus on scaling stablecoins and payments, with USDC reaching an all-time high market cap of about $75 billion [10] - The strategy includes bringing the world on-chain, emphasizing DeFi and self-custodial wallets [12] - The company plans to continue investing in its product offerings and expanding its market presence internationally [4][10] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about regulatory clarity and the growth of crypto adoption [3] - The company is prepared for market volatility and has diversified its revenue streams [16] - Management believes that stablecoins will become the default payment method for AI agents [11] - The company is confident in its ability to drive growth through its diversified revenue base and strong balance sheet [23] Other Important Information - The company has repurchased $1.7 billion of its common stock to offset dilution from stock-based compensation [20] - The company is exploring a Base token and improving developer tools to incentivize builders on the Base platform [28] Q&A Session Summary Question: Are you making any headway on positive outcomes regarding the CLARITY Act? - Management is optimistic about progress on the CLARITY Act and believes there is a good path to a positive outcome [24] Question: What percentage of overall subscription and services revenue do you expect Layer 2 activity from Base to contribute in 2026? - Base revenue is monetized both directly and indirectly, but no specific forecast was provided [26] Question: What product or platform initiative are you most excited about that investors may be underestimating today? - Management highlighted the Everything Exchange and stablecoin payments as key initiatives with significant growth potential [29] Question: Could your economic relationship with Circle change depending upon language in a market structure bill? - Management does not foresee any changes to the economic relationship with Circle due to the market structure legislation [34] Question: How does Coinbase think about the opportunities in larger scale buybacks and M&A? - The company is focused on buybacks and opportunistic M&A, having completed 10 acquisitions in 2025 [37] Question: Can you talk about your 2026 spending plans? - The company plans to maintain flat expenses in Q1 2026 while being nimble in response to market conditions [44] Question: Was the Coinbase issue just a tech mishap and not a more severe issue? - A technical issue caused brief interruptions for some users, but trading remained unaffected [48] Question: How should we think about the strength of the casual crypto trader in this winter? - Retail consumers tend to hold through price declines and are currently net buyers [67]