TLDR
- Third quarter revenue hit $1.9 billion, surpassing analyst forecasts by $100 million with 58% annual growth
- Transaction revenue reached $1 billion, more than double the $573 million reported in Q3 2024
- Base Layer 2 blockchain became profitable for the first time due to higher transaction volumes
- Bitcoin treasury grew by $299 million to total 14,548 BTC valued at $1.57 billion
- Adjusted EBITDA jumped to $801 million while operating expenses declined 9% quarter-over-quarter
Coinbase reported third quarter financial results that topped Wall Street projections. The exchange generated $1.9 billion in revenue, up from $1.2 billion in the same period last year.
The figure exceeded the $1.8 billion consensus estimate from FactSet analysts. Trading volumes across the platform totaled $295 billion during the three-month period.
Transaction revenue doubled year-over-year to $1 billion. This category continues to represent the largest portion of company revenue.
The exchange posted net income of $433 million. Adjusted EBITDA reached $801 million compared to $449 million in Q3 2024.
Shares climbed 1.5% in extended trading following the earnings release. The stock had dropped 5.8% during the regular session.
Consumer and Institutional Trading Revenue Climbs
Consumer transaction revenue totaled $844 million, up 30% from the second quarter. Retail user trading volume increased 37% from the prior three-month period.
Institutional clients contributed $135 million in transaction revenue. This marks more than a twofold increase from the previous year.
The August acquisition of Deribit delivered immediate results. The crypto options platform generated $52 million in quarterly revenue.
Assets under institutional custody surpassed $300 billion. The milestone represents a new record high for the exchange.
Ethereum’s share of transaction volume reached 22%, approaching Bitcoin’s 24% share. Earlier quarters showed Bitcoin commanding approximately double the volume share.
Base Network Reports First Profitable Quarter
Coinbase’s Layer 2 solution Base turned profitable in the third quarter. Revenue increased due to rising transaction counts and higher ethereum prices.
Individual transaction fees fell during the period. The network facilitated activity in trading, payments, lending and social apps.
The exchange introduced Flashblocks on Base. The technology enables 200-millisecond block times for faster transaction processing.
Stablecoin Revenue and Treasury Growth
Subscription and services revenue increased 14% to $747 million. Stablecoin operations contributed $355 million to this figure.
Average USDC balances on the platform reached an all-time high of $15 billion. The stablecoin forms a core part of the “Everything Exchange” strategy.
Blockchain rewards revenue grew 28% to $185 million. The increase came as ether and solana prices rallied.
Coinbase added 2,772 BTC to its treasury in Q3. Holdings now total 14,548 BTC with a market value of $1.57 billion.
The company held $11.9 billion in USD resources at quarter end. A $3 billion convertible debt offering bolstered this position.
Operating expenses decreased 9% from the previous quarter. Management forecasts October transaction revenue near $385 million.
The company projects Q4 subscription revenue between $710 million and $790 million. Executives warned that crypto market volatility could affect future results.
Institutional trading made up 80% of total trading volume. Retail interest in long-tail crypto assets continued to grow.
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