TLDR
- Coinbase reported $1.9 billion in Q3 revenue, up 58% from last year, beating analyst expectations of $1.8 billion
- Transaction revenue more than doubled to $1.0 billion while adjusted EBITDA reached $801 million
- Base Layer 2 network achieved profitability for the first time due to increased usage and higher ETH prices
- Bitcoin holdings grew by 2,772 BTC to reach 14,548 BTC valued at $1.57 billion
- Institutional transaction revenue doubled to $135 million with Deribit acquisition adding $52 million
Coinbase posted third quarter results that exceeded Wall Street forecasts. The exchange reported total revenue of $1.9 billion, up from $1.2 billion in the same period last year.
Our Q3 2025 financial results are now live. pic.twitter.com/FyukJgfDsj
— Coinbase 🛡️ (@coinbase) October 30, 2025
FactSet analysts had expected $1.8 billion. Trading volumes hit $295 billion during the quarter.
Transaction revenue reached $1 billion, compared to $573 million a year ago. This remains the largest part of Coinbase’s business model.
The company reported net income of $433 million. Adjusted EBITDA came in at $801 million, up from $449 million in Q3 2024.
Shares rose 1.5% in post-market trading following the announcement. The stock had declined 5.8% during regular hours.
Consumer transaction revenue hit $844 million, up 30% from Q2. Retail trading volume grew 37% quarter-over-quarter.
Institutional traders drove $135 million in transaction revenue, more than double the previous year. The acquisition of crypto options platform Deribit closed in August.
Deribit contributed $52 million in revenue to the quarter. Institutional custody assets surpassed $300 billion for the first time.
Base Network Reaches Profitability Milestone
Coinbase confirmed its Layer 2 network Base turned profitable in Q3. Revenue from Base increased due to higher transaction volumes and ethereum prices.
Per-transaction fees dropped during the period. The network processed transactions across trading, payments, lending and social applications.
Coinbase launched Flashblocks on Base during the quarter. This feature enables 200-millisecond block times for faster transaction preconfirmation.
Subscription Revenue Climbs on Stablecoin Growth
Subscription and services revenue rose 14% to $747 million. Stablecoin-related revenue made up $355 million of that total.
Average USDC balances held on the platform reached a record $15 billion. Circle’s USDC plays a key role in Coinbase’s “Everything Exchange” strategy.
Blockchain rewards revenue increased 28% to $185 million. This came as ether and solana prices rallied during the quarter.
Ethereum’s share of transaction volume hit 22%, nearly matching Bitcoin’s 24%. This marks a change from previous quarters when Bitcoin held twice the share.
The company added 2,772 BTC to its treasury during Q3. Total Bitcoin holdings now stand at 14,548 BTC valued at $1.57 billion.
Coinbase closed the quarter with $11.9 billion in USD resources. The company raised $3 billion through a convertible debt offering.
Operating expenses fell 9% from the previous quarter. Management expects October transaction revenue around $385 million.
Q4 subscription revenue is projected between $710 million and $790 million. The company warned investors about crypto market volatility affecting future results.
Institutional trading accounted for 80% of the $295 billion trading volume. Retail users showed renewed interest in long-tail crypto assets.
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