Coinbase Posts $433 Million Income as Exchange Advances 'Everything Exchange' Vision

Coinbase Global (Nasdaq: COIN) reported net income of $433 million for the third quarter of 2025, surpassing analyst expectations as the company expanded its product offerings and derivatives market share, according to a shareholder letter released Wednesday.

The San Francisco-based exchange generated total revenue of $1.9 billion, up 25% from the previous quarter and above the $1.75 billion analyst consensus. Earnings per share reached $1.50, beating Wall Street estimates of $1.05 by 45%.

Transaction revenue climbed 37% quarter-over-quarter to $1.0 billion, while subscription and services revenue increased 14% to $747 million. The company processed $295 billion in total trading volume during the quarter, up 24% sequentially, though it underperformed broader crypto market growth due to lower stablecoin pair volumes.

CEO Brian Armstrong's vision of building an "Everything Exchange" gained traction in the quarter. Coinbase said it now covers approximately 90% of total crypto asset market capitalization through expanded spot listings, and achieved all-time high market share in U.S. crypto futures and global crypto options following the August acquisition of derivatives platform Deribit.

The $52 million revenue contribution from Deribit helped drive institutional transaction revenue up 122% to $135 million. Combined, Coinbase and Deribit processed over $840 billion in notional derivatives volume during the quarter. The company also launched perpetual futures and 24/7 futures trading for U.S. customers.

Stablecoin adoption reached new milestones, with USD Coin (USDC) hitting an all-time high market capitalization of $74 billion. Average USDC held in Coinbase products exceeded $15 billion, also a record. The company attributed growth to policy tailwinds and increasing adoption by financial institutions and corporations for payments and treasury management.

Operating expenses declined 9% to $1.4 billion despite a 12% increase in full-time employees to 4,795. Adjusted EBITDA reached $801 million for the quarter.

For the fourth quarter, Coinbase projected subscription and services revenue between $710 million and $790 million, driven by USDC growth and Coinbase One subscribers, partially offset by interest rate cuts. The company reported October transaction revenue of approximately $385 million, though it cautioned against extrapolating near-term results.

Coinbase's Base layer-2 network maintained its position as the leading L2 blockchain, with growth driven by higher Ethereum prices and increased transaction volumes, though average revenue per transaction declined as the network scales.

Despite the strong results, COIN shares closed Thursday at $328.51, down approximately 5% for the day and more than 7% over four trading sessions. The stock joined the S&P 500 in May as the index's first crypto company.

Coinbase, founded by Brian Armstrong in 2012, went public through a direct listing on Nasdaq in 2021.