Coinbase shares rise on strong quarterly results as trading volumes and revenue surge
Shares in Coinbase Global Inc. were up more than 2% in late trading today after the cryptocurrency exchange provider impressed with revenue and earnings beats in its fiscal third quarter on the back of increasing transaction volumes and revenue.
For the quarter that ended on Sept. 30, Coinbase reported adjusted earnings per share of $1.44, up from 63 cents in the same quarter of 2024, on total revenue of $1.869 billion, up 55% year-over-year. Analysts had expected adjusted earnings of $1.05 per share on revenue of $1.75 billion.
Transaction revenue in the quarter came in at $1.045 billion, up 83%, with consumer revenue up 75% to $844 million and institutional revenue up 145% year-over-year to $135 billion. Subscription and service revenue was $747 million, up 34% year-over-year, with stablecoin revenue up 44% to $255 million and blockchain rewards revenue up 19% to $185 million.
Surging cryptocurrency prices drove an increase in overall platform use, with Coinbase seeing trading volume in the quarter of $295 billion, up 59% year-over-year and the value of assets being held on the company’s platform was up 50% to $516 billion.
The only perhaps concerning part of the quarterly earnings report was that Coinbase saw its operating expenses grow 34% year-over-year to $1.39 billion, although notably the figure was down 9% quarter-over-quarter.
Business highlights in the quarter included Coinbase announcing in July its plans to expand its core trading app beyond cryptocurrency, with a new “Everything Exchange” that will include tokenized real-world assets, stocks, derivatives, prediction markets and early-stage token sales. The planned offering will initially include tokenized versions of publicly traded U.S. equities, giving investors access to fractional shares with the benefits of near-instant settlement and around-the-clock trading availability.
August saw Coinbase close its acquisition of Deribit, a Dubai-based cryptocurrency exchange that it announced its plan to acquire for $2.9 billion in May. The deal was the largest acquisition in the crypto industry to date.
Also notable in the quarter was Coinbase surpassing $1 billion in total loan originations for its crypto-backed loan product. The company noted growing institutional demand for the service, with loan balances reaching an all-time high of $1.2 billion as more corporates, miners and hedge funds tapped Coinbase for on-chain financing solutions.
“Q3 was a strong quarter for Coinbase. We drove solid financial results, maintained focus on shipping innovative products and continued building the foundation of the Everything Exchange,” Coinbase said in its letter to shareholders.
For its fiscal fourth quarter, Coinbase expects subscription and services revenue of $710 million to $790 million.
