Coinbase (COIN) delivered impressive results for its third quarter, buoyed by increased trading activity, a rebound in asset prices, and ongoing growth in subscriptions and services. The U.S.-based exchange recorded total revenue of $1.9 billion, marking a substantial 58% increase from last year’s $1.2 billion for the same period.
Post-market trading saw shares rise by 3%.
Transaction revenue, a significant part of Coinbase’s operations, climbed to $1 billion, a sharp rise from $365 million a year ago. The company reported trading volumes of $295 billion, driven by renewed enthusiasm in the cryptocurrency markets, particularly among retail investors, whose trading volume surged by 37% compared to the previous quarter.
Adjusted EBITDA reached $801 million, up from $512 million in Q3 2024, reflecting a more favorable business mix and stringent management of operating expenses, which declined by 9% since the last quarter. Net income stood at $433 million.
Coinbase noted robust growth in both its consumer and institutional trading segments. Institutional transaction revenue more than doubled to $135 million, partly due to the acquisition of the crypto options platform Deribit, contributing $52 million in revenue after the deal closed in August. Meanwhile, consumer transaction revenue rose to $844 million, up 30% from Q2, driven by increased trading in long-tail assets and a growing number of advanced traders.
“Q3 was a strong quarter for Coinbase,” the company stated in a letter to shareholders. “We achieved solid financial performance, remained focused on delivering innovative products, and continued to strengthen the foundation of the Everything Exchange.”
In addition to trading, subscription and services revenue saw a quarter-over-quarter rise of 14% to reach $747 million. Revenue associated with stablecoins accounted for $355 million, with average USDC balances on Coinbase hitting an all-time high of $15 billion. Blockchain rewards revenue also grew, increasing by 28% to $185 million as the prices of Ethereum and Solana increased.
Notably, Coinbase confirmed that its Layer 2 network, Base, has become profitable. Revenue from Base grew in Q3 due to increased transactions and a higher Ethereum price, although lower fees per transaction mitigated some of the revenue increases. Nevertheless, Coinbase described Base’s efficiency and affordability as making it the “trusted network of choice” for developers and businesses engaging with on-chain projects.
At the close of the quarter, the exchange reported $11.9 billion in USD resources, supported by a $3 billion convertible debt issuance and increasing operational cash flow.
Coinbase cautioned investors against drawing conclusions from these results, acknowledging the volatile nature of crypto markets, but anticipated transaction revenue for October to be around $385 million and subscription revenue for Q4 to range between $710 million and $790 million.
