Coinbase (COIN) Stock: Q3 Revenue Soars to $1.9 Billion as Base Network Hits Profitability

TLDR

• Q3 revenue reached $1.9 billion, beating analyst estimates by $100 million with 58% year-over-year growth
• Transaction revenue doubled to $1 billion while adjusted EBITDA hit $801 million
• Base Layer 2 network turned profitable driven by increased transaction activity and higher ETH prices
• Bitcoin treasury expanded by 2,772 BTC, bringing total holdings to 14,548 BTC worth $1.57 billion
• Institutional revenue doubled to $135 million with Deribit contributing $52 million post-acquisition

Coinbase delivered third quarter earnings that surpassed Wall Street expectations. The crypto exchange posted $1.9 billion in total revenue, up 58% from $1.2 billion last year.

Analysts had projected $1.8 billion. The beat came as trading volumes reached $295 billion across the platform.

Transaction revenue hit $1 billion compared to $573 million in Q3 2024. This segment remains the primary revenue driver for the company.

Net income totaled $433 million for the quarter. Adjusted EBITDA climbed to $801 million from $449 million year-over-year.

Coinbase Global, Inc., COIN

The stock gained 1.5% in after-hours trading. Regular session trading saw shares decline 5.8%.

Trading Activity Drives Revenue Growth

Consumer transaction revenue reached $844 million, marking a 30% increase from Q2. Retail trading volume jumped 37% quarter-over-quarter.

Institutional clients generated $135 million in transaction revenue. This represents more than double the prior year figure.

The Deribit acquisition closed in August. The crypto options platform added $52 million to quarterly revenue.

Institutional custody assets crossed $300 billion for the first time. This set a new all-time high for the exchange.

Ethereum captured 22% of transaction volume, nearly matching Bitcoin’s 24% share. Previous quarters saw Bitcoin holding roughly twice the market share.

Base Network Achieves Profitability

The Layer 2 network Base reached profitability in Q3. Higher transaction volumes and ethereum prices drove revenue growth on the network.

Transaction fees decreased on a per-unit basis. Base processed activity across trading, payments, lending and social applications.

Coinbase rolled out Flashblocks during the period. The feature delivers 200-millisecond block times for transaction preconfirmation.

Subscription Services and Bitcoin Holdings Expand

Subscription and services revenue rose 14% to $747 million. Stablecoin-related revenue accounted for $355 million of the total.

USDC balances on the platform hit a record $15 billion average. The stablecoin supports Coinbase’s “Everything Exchange” initiative.

Blockchain rewards revenue increased 28% to $185 million. Rising ether and solana prices boosted this segment.

The company purchased 2,772 BTC during Q3. Total Bitcoin holdings now stand at 14,548 BTC valued at $1.57 billion.

Coinbase ended the quarter with $11.9 billion in USD resources. A $3 billion convertible debt raise contributed to this balance.

Operating expenses dropped 9% from Q2. Management projects October transaction revenue around $385 million.

Fourth quarter subscription revenue is forecast between $710 million and $790 million. The company cautioned about crypto market volatility impacting future performance.

Institutional traders represented 80% of the $295 billion trading volume.

The post Coinbase (COIN) Stock: Q3 Revenue Soars to $1.9 Billion as Base Network Hits Profitability appeared first on Blockonomi.