Coinbase (COIN) recorded a stronger-than-expected third quarter, driven by increased trading activity, a bounce in asset prices, and continued growth in its subscriptions and services 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 above the $1.8 billion expected by FactSet analysts.
Shares were up 1.5% in after-market trading, although the exchange warned investors not to make future assumptions about current results, citing the inherent volatility in crypto markets. Coinbase said it expects October transaction revenue to be approximately $385 million and Q4 subscription revenue to be between $710 million and $790 million.
Transaction revenue, the largest part of Coinbase’s business, rose to $1 billion from $573 million a year earlier. The company reported that trading volume reached $295 billion, fueled by renewed interest in crypto markets, especially among retail users, whose trading volume increased 37% from the previous quarter.
Adjusted EBITDA increased from $449 million to $801 million in the third quarter of 2024, reflecting a more profitable mix of the business and tighter control of operating expenses, which fell 9% from the prior quarter. Net income was $433 million.
Coinbase highlighted growth in both its consumer and institutional trading arms. Institutional trading revenue more than doubled to $135 million, partly boosted by the acquisition of crypto options platform Deribit, which contributed $52 million to revenue after the deal closed in August. Meanwhile, consumer transaction revenue reached $844 million, up 30% from the second quarter, driven by higher volume 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 achieved solid financial results, remained focused on shipping innovative products and continued to build the foundation of Everything Exchange.”
Beyond trading, subscriptions and services revenue increased 14% quarter-over-quarter to $747 million. The company indicated that stablecoin-related revenues contributed $355 million, as the average USDC balance held on Coinbase reached a record high of more than $15 billion. Blockchain rewards revenue also saw an increase, increasing by 28% to $185 million due to the rise in prices of Ether and Solana.
An extraordinary update: Coinbase confirmed that its Layer 2 network, Base, is now profitable. Revenue increased off base in Q3 due to more transactions and higher Ethereum Price, although low per-transaction fees offset some of the benefits. Still, Coinbase said Base’s speed and low costs have made it the “trusted network of choice” for developers and enterprises building on-chain.
The exchange finished the quarter with $11.9 billion USD in resources, driven by a $3 billion convertible loan increase and increasing cash from operations.
UPDATE (October 30, 2025, 20:51 UTC): Coinbase adds details from the letter.