Coinbase (COIN) posted a stronger-than-expected third quarter, driven by an increase in trading activity, a rebound in asset prices and continued growth in its subscription and services business. The U.S. 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 that FactSet analysts had expected.
Shares rose 1.5% in post-market trading, although the exchange warned investors not to make future assumptions about current performance, citing the inherent volatility of crypto markets. Coinbase said it expects October transaction revenue to land around $385 million and subscription revenue in the fourth quarter between $710 million and $790 million.
Transaction revenue, which remains the largest part of Coinbase’s business, rose to $1 billion, up from $573 million a year ago. Trading volume 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 costs, which fell 9% from the prior quarter. Net income was $433 million.
Coinbase highlighted growth across both consumer and institutional trades. Institutional transaction revenue more than doubled to $135 million, driven in part by the acquisition of crypto options platform Deribit, which contributed $52 million in revenue after the deal closed in August. Meanwhile, consumer transaction revenue reached $844 million, up 30% from Q2, driven by higher volumes in long-tail assets and a growing base of advanced merchants.
“Q3 was a strong quarter for Coinbase,” the company wrote in a letter to shareholders. “We generated solid financial results, maintained a focus on shipping innovative products, and continued to build the foundation of Everything Exchange.”
Excluding trading, subscriptions and services revenue increased 14% quarter-over-quarter to $747 million. Stablecoin-related revenue contributed $355 million of that, as average USDC balances on Coinbase hit a record high of more than $15 billion, the company indicated. Blockchain reward revenue also saw a boost, rising 28% to $185 million as the prices of ether and solana rose.
A striking update: Coinbase confirmed that its Layer 2 network, Base, is now profitable. Revenue from Base increased in Q3 due to more transactions and higher Ethereum price, although lower fees per transaction offset some of the gains. Still, Coinbase said Base’s speed and low cost have made it the “trusted network of choice” for developers and companies building onchain.
The exchange also closed the quarter with $11.9 billion in USD resources, boosted by a $3 billion convertible debt increase and increasing cash from operations.
UPDATE (October 30, 2025, 20:51 UTC): Adding details from the Coinbase letter.
