- Revenue hit $1.9B, up 58% year over year, topping estimates
- Net income of $433M and EPS of $1.50; adjusted EBITDA reached $801M
- Trading volumes climbed to $295B as retail and institutions returned
- Subscriptions and services rose to $747M; Base turned profitable
Coinbase posted a quarter that topped Wall Street’s forecasts, lifted by livelier trading conditions, firmer crypto prices and steady growth in subscription-related revenue streams.
The company reported $1.9 billion in total revenue, roughly 58% higher than a year ago and above the ~$1.8 billion analysts were looking for, alongside net income of about $433 million and earnings of $1.50 per share.
Q3 by the numbers
Momentum showed up across the P&L: transaction revenue reached $1.0 billion versus $573 million a year earlier, while adjusted EBITDA rose to $801 million from $449 million in the prior-year period.
Total trading volume climbed to $295 billion, reflecting a broad-based pickup in activity as markets improved and sentiment stabilized compared with earlier in the cycle.
Operating discipline also helped, with operating expenses down 9% quarter over quarter, which supported profitability even as Coinbase continued to invest in product and platform upgrades.
Management acknowledged the beat but urged caution, noting the inherent volatility of crypto markets and discouraging investors from straight-line extrapolation of current results.
Retail and institutional trading regained traction
Retail engagement returned in force: consumer trading volume rose 37% quarter over quarter and retail transaction revenue hit $844 million, up 30% from Q2 as advanced traders and niche assets drove activity.
On the institutional side, Coinbase generated $135 million in transaction revenue, more than doubling from the prior quarter, helped by stronger derivatives demand and incremental contribution from a recently closed deal.
The company said the acquisition of a leading crypto options venue closed in August and added roughly $52 million to institutional revenue following completion of the transaction.
Together, the two segments benefited from a rebound in liquidity and price discovery, with improved depth across major pairs and renewed interest from both discretionary and systematic participants.
Subscriptions, stablecoins and staking expanded
Beyond trading, Coinbase’s subscriptions and services business advanced to $747 million, up 14% sequentially as custody, interest and other services diversified the top line.
Stablecoin-related revenue contributed $355 million, supported by a record average of more than $15 billion in USDC balances custodied on platform during the quarter and partnerships on stablecoin payment solutions.
Blockchain rewards also climbed, rising 28% to $185 million as activity and prices in networks like ether and solana picked up, strengthening non-transaction revenue mix.
These trends helped reduce reliance on trading fees, a strategic aim the company has emphasized through multiple cycles.
Base L2 is profitable
Coinbase confirmed its Layer 2 network, Base, is now operating profitably, with higher transactions and a stronger ETH price offsetting the impact of lower per-transaction fees.
The firm said Base’s speed and low costs have made it a preferred option for developers and enterprises building onchain, reinforcing the broader network strategy.
Balance sheet, capital moves and crypto holdings
Coinbase ended the quarter with $11.9 billion in USD resources, bolstered by a $3 billion convertible debt issuance and higher operating cash flow.
The company disclosed ongoing treasury activity in digital assets, including the purchase of approximately 2,772 BTC (about $299 million) during the quarter for its investment portfolio.
Platform scale remained substantial, with assets on platform at $516 billion and assets under custody near $300 billion, underscoring Coinbase’s role in the crypto market’s core infrastructure.
Management reiterated its long-term “Everything Exchange” vision, integrating more products and services across the crypto economy for consumers and institutions.
Outlook and near-term signals
For near-term reads, Coinbase guided October transaction revenue to around $385 million and set fourth-quarter subscription and services revenue expectations in a range of $710 million to $790 million.
Shares edged higher in after-hours trading following the report, though the company emphasized that market conditions can change quickly and results may vary with volatility.
While leadership highlighted a constructive product roadmap, they stressed prudent cost control and careful capital allocation as key to navigating shifting liquidity and risk appetite.
Coinbase delivered a quarter marked by stronger trading, expanding high-quality revenue and tighter execution, with guidance that remains measured given the nature of the asset class.
