Coinbase (COIN) posted a better-than-expected third quarter, driven by an increase in trading activity, a rebound in asset prices, and continued growth in its services and subscriptions business. The US-based exchange reported total revenue of $1.9 billion, up 58% from $1.2 billion in the same period last year and higher than the $1.8 billion expected by FactSet analysts.
Shares rose 1.5% in post-market trading, although the exchange cautioned investors against making future assumptions about current results, citing the inherent volatility in crypto markets. Coinbase said it expects October transaction revenue to be around $385 million and fourth-quarter subscription revenue to be 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 volumes reached $295 billion, the company reported, driven by renewed interest in crypto markets, particularly among retail users, whose trading volume grew 37% from the previous quarter.
Adjusted EBITDA was $801 million, up from $449 million in the third quarter of 2024, reflecting a more profitable business mix and tight control of operating expenses, which fell 9% from the previous quarter. Net income was $433 million.
Coinbase highlighted growth in its institutional and consumer trading arms. Institutional trading 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 the second quarter, driven by higher volumes of long-tail assets and a growing base of advanced traders.
“The third quarter was a strong quarter for Coinbase,” the company wrote in a letter to shareholders. “We delivered strong financial results, maintained focus on shipping innovative products, and continued to build the foundation of Everything Exchange.”
Beyond commerce, subscription and services revenue increased 14% quarter over quarter to $747 million. Stablecoin-related revenue contributed $355 million of that, as average USDC balances held on Coinbase hit a record high of more than $15 billion, the company said. Blockchain reward revenue also saw a surge, rising 28% to $185 million as ether and solana prices rose.
One notable update: Coinbase confirmed that its Layer 2 network, Base, is now profitable. Base revenue increased in Q3 due to more transactions and higher ethereum price, although lower 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 companies building on chain.
The stock also closed the quarter with $11.9 billion in dollar resources, supported by a $3 billion increase in convertible debt and an increase in cash from operations.
UPDATE (October 30, 2025, 20:51 UTC): Add details from Coinbase letter.
