Coinbase Posts $433 Million Profit as ‘Everything Exchange’ Vision Takes Shape
Surging derivatives activity, stablecoin adoption, and cost discipline push Coinbase to its strongest quarter since 2021.
Coinbase beat Wall Street expectations with $1.9 billion in Q3 2025 revenue and $433 million in net income, driven by derivatives expansion and record USD Coin (USDC) adoption. The results highlight the exchange’s pivot toward a full-spectrum “Everything Exchange” model.
Coinbase Global (COIN) delivered a robust third-quarter earnings report, outperforming analyst estimates on both revenue and profit. The San Francisco-based exchange posted $1.9 billion in revenue, up 25% quarter-on-quarter and above the $1.75 billion consensus, according to its shareholder letter released Wednesday.
Net income reached $433 million, translating to $1.50 earnings per share, 45% higher than Wall Street’s $1.05 forecast. Transaction revenue jumped 37% QoQ to $1.0 billion, while subscription and services income rose 14% to $747 million.
Derivatives and Institutional Surge
Coinbase’s derivatives arm became the quarter’s standout. Following its August acquisition of Deribit, institutional transaction revenue surged 122% to $135 million, supported by a $52 million contribution from Deribit operations. Combined, Coinbase + Deribit processed over $840 billion in notional derivatives volume, securing an all-time-high market share in U.S. crypto futures and global options.
The company also introduced perpetual futures and 24/7 trading for U.S. clients, a direct play into the growing appetite for round-the-clock institutional markets.
Stablecoins Anchor Growth
Stablecoin momentum strengthened the balance sheet. USDC reached an all-time-high $74 billion market cap, with an average $15 billion held in Coinbase products — both records. CEO Brian Armstrong attributed this to “policy clarity and institutional adoption” across payments and corporate treasuries.
Operating expenses fell 9% to $1.4 billion, even as headcount rose 12% to 4,795. Adjusted EBITDA came in at $801 million, underscoring efficiency gains from automation and scaling on Base, Coinbase’s layer-2 blockchain.
Outlook and Market Reaction
For Q4, Coinbase guided $710–$790 million in subscription and services revenue, forecasting softer yields as rate cuts reduce interest income. October transaction revenue totaled $385 million.
Despite strong fundamentals, COIN shares fell 5% to $328.51, extending a 7% four-session decline. Still, Coinbase remains the first crypto-native member of the S&P 500, symbolizing how traditional markets are absorbing digital-asset infrastructure.
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