Coinbase Tops Expectations as Transaction Revenue Hits $1B

Coinbase (COIN) posted a stronger-than-expected third quarter, driven by a surge in trading activity, a rebound in asset prices and continued growth in its subscription and services business. The U.S.-based exchange reported total revenue of $1.9 billion, a 58% jump from $1.2 billion in the same period last year and higher than the $1.8 billion expected by FactSet analysts.

Shares were up 1.5% in post-market trading, though the exchange warned investors not to make future assumptions about current results, citing the inherent volatility in crypto markets. Coinbase said it expects October transaction revenue to land around $385 million and Q4 subscription revenue between $710 million and $790 million.

Transaction revenue, which remains the largest piece of Coinbase’s business, rose to $1 billion, up from $573 million a year ago. Trading volumes reached $295 billion, the company reported, lifted by renewed interest in crypto markets, particularly among retail users, whose trading volume grew 37% from the previous quarter.

Adjusted EBITDA came in at $801 million, up from $449 million in Q3 2024, reflecting a more profitable mix of business and tight control of operating expenses, which fell 9% from the previous quarter. Net income was $433 million.

Coinbase highlighted growth across both its consumer and institutional trading arms. Institutional transaction revenue more than doubled to $135 million, fueled in part by the acquisition of crypto options platform Deribit, which contributed $52 million in revenue following the August close of the deal. Meanwhile, consumer transaction revenue hit $844 million, up 30% from Q2, driven by higher volumes in long-tail assets and a growing base of advanced traders.

“Q3 was a strong quarter for Coinbase,” the company wrote in a letter to shareholders. “We drove solid financial results, maintained focus on shipping innovative products, and continued building the foundation of the Everything Exchange.”

Beyond trading, subscription and services revenue rose 14% quarter-over-quarter to $747 million. Stablecoin-related revenue contributed $355 million of that, as average USDC balances held on Coinbase reached an record high of more than $15 billion, the company indicated. Blockchain rewards revenue also saw a boost, increasing 28% to $185 million as the prices of ether and solana rallied.

One standout update: Coinbase confirmed its Layer 2 network, Base, is now profitable. Revenue from Base rose in Q3 due to more transactions and a higher ethereum ETH$3,738.28 price, though lower per-transaction fees offset some of the gains. Still, Coinbase said Base’s speed and low costs have made it the “trusted network of choice” for developers and enterprises building onchain.

The exchange also closed the quarter with $11.9 billion in USD resources, bolstered by a $3 billion convertible debt raise and rising cash from operations.

UPDATE (October 30, 2025, 20:51 UTC): Adds details from the Coinbase letter.