Coinbase Reports Strong Q3 Results as Trading Activity and Asset Prices Rebound

Coinbase (COIN) delivered a stronger-than-expected third quarter, fueled by surging trading activity, recovering crypto asset prices, and continued growth in its subscription and services segment. The U.S.-based crypto exchange reported total revenue of $1.9 billion, marking a 58% year-over-year increase from $1.2 billion and exceeding analyst expectations of $1.8 billion, according to FactSet. Shares rose 1.5% in post-market trading, though Coinbase cautioned investors about the unpredictability of crypto markets. The company projected October transaction revenue of about $385 million and Q4 subscription revenue between $710 million and $790 million.

Transaction revenue remained the core driver, climbing to $1 billion, up from $573 million a year ago, as trading volumes soared to $295 billion. Retail trading volume grew 37% quarter-over-quarter, highlighting renewed investor interest. Coinbase’s adjusted EBITDA surged to $801 million, nearly doubling from $449 million in Q3 2024, while net income hit $433 million, supported by a 9% reduction in operating expenses.

Institutional transaction revenue more than doubled to $135 million, boosted by the recent acquisition of crypto options platform Deribit, which added $52 million in post-acquisition revenue. Consumer transaction revenue rose to $844 million, driven by stronger engagement among advanced traders and long-tail crypto assets. Subscription and services revenue increased 14% to $747 million, including $355 million from stablecoin-related income as USDC balances on Coinbase hit $15 billion. Blockchain rewards revenue also climbed 28% to $185 million, reflecting rising prices of Ethereum and Solana.

Coinbase confirmed its Layer 2 network, Base, is now profitable, citing rising transaction volumes and Ethereum price gains. The company ended Q3 with $11.9 billion in USD resources, strengthened by a $3 billion debt raise and higher operating cash flow—solidifying Coinbase’s position as a leader in the evolving crypto economy.