Analysis of Revenue Comparison Between Coinbase and PayPal
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy COIN?
Source: NASDAQ.COM
- Revenue Volatility Comparison: Coinbase has shown significant revenue fluctuations over the past eight quarters, while PayPal maintains a more stable revenue base, indicating Coinbase's high reliance on trading activity, which may threaten its future profitability.
- Profitability Discrepancy: As of December 31, 2025, Coinbase reported a net income margin of approximately -37%, contrasting with PayPal's 17% net income margin, highlighting PayPal's profitability advantage, although its lack of growth may face competitive pressures.
- Market Performance Analysis: Since 2023, Coinbase's stock has risen by 12%, while PayPal has declined by 19%, indicating that Coinbase has performed relatively better in the current market environment, but its future growth potential remains to be seen.
- Strategic Development Opportunities: Coinbase is expanding its European futures offerings and has received regulatory approval to operate as a national trust company, which could provide new growth momentum, while PayPal needs to find ways to accelerate growth under its new CEO's leadership.
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Analyst Views on COIN
Wall Street analysts forecast COIN stock price to rise
25 Analyst Rating
17 Buy
7 Hold
1 Sell
Moderate Buy
Current: 195.900
Low
230.00
Averages
361.63
High
440.00
Current: 195.900
Low
230.00
Averages
361.63
High
440.00
About COIN
Coinbase Global, Inc. is a holding company of Coinbase, Inc. and other subsidiaries. The Company provides a platform that serves as a compliant on-ramp to the onchain economy and enables users to engage in a variety of activities with their crypto assets in both proprietary and third-party product experiences enabled by access to decentralized applications. It offers consumers their primary financial account for the onchain economy; institutions a full-service prime brokerage platform with access to deep pools of liquidity across the crypto marketplace, and developers a suite of products granting access to build onchain. The Company offers products and services to various customer groups: consumers, businesses, institutions, and developers. Its transaction products consist of consumer trading, prime trading, markets, base protocol and Coinbase wallet. The Company also provides market infrastructure in the form of exchanges for customers to trade spots and derivatives.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Schwab Launches Crypto Trading Service for Clients
- Service Launch: Schwab has announced the rollout of a new division called Schwab Crypto, enabling clients to buy Bitcoin and Ether directly, which is expected to launch in the coming weeks to meet strong client demand for crypto investments.
- Increased Market Competition: This move places Schwab in direct competition with rivals like Robinhood, which primarily attracts a younger clientele, as Schwab aims to draw in more customers and enhance its market share through crypto trading offerings.
- Fee Structure: Schwab will charge a 0.75% fee on each trade, which may impact its appeal among younger investors compared to Robinhood's commission-free trading model, potentially affecting Schwab's competitive positioning.
- Partnership for Security: Schwab is partnering with Paxos for custody services, ensuring that crypto assets are held in a separate Schwab account distinct from brokerage accounts, which not only enhances security but also builds client trust in Schwab's crypto services.
See More
Comparison of Revenue Performance: Coinbase vs PayPal
- Coinbase Revenue Volatility: Coinbase reported $1.6 billion in revenue for Q1 2024, with a rebound to $1.8 billion in 2025, yet its net income margin of -37% highlights its heavy reliance on trading activity, revealing vulnerabilities during market fluctuations.
- PayPal Steady Growth: PayPal's revenue reached $7.7 billion in Q1 2024, maintaining a net income margin of approximately 17% despite CEO transitions and weaker forward guidance, indicating relative stability and profitability in the digital payments sector.
- Market Competition Pressure: While Coinbase's stock has risen 12% since 2023, PayPal's has declined by 19%, suggesting that PayPal faces challenges in achieving significant growth amidst fierce competition in the digital payments market, potentially impacting its future market position.
- Future Growth Potential: Coinbase aims to expand into other asset classes like stocks and commodities, and anticipates the passage of the CLARITY Act, which would provide greater regulatory certainty for cryptocurrencies, potentially driving institutional demand and enhancing future revenue growth.
See More
Analysis of Revenue Comparison Between Coinbase and PayPal
- Revenue Volatility Comparison: Coinbase has shown significant revenue fluctuations over the past eight quarters, while PayPal maintains a more stable revenue base, indicating Coinbase's high reliance on trading activity, which may threaten its future profitability.
- Profitability Discrepancy: As of December 31, 2025, Coinbase reported a net income margin of approximately -37%, contrasting with PayPal's 17% net income margin, highlighting PayPal's profitability advantage, although its lack of growth may face competitive pressures.
- Market Performance Analysis: Since 2023, Coinbase's stock has risen by 12%, while PayPal has declined by 19%, indicating that Coinbase has performed relatively better in the current market environment, but its future growth potential remains to be seen.
- Strategic Development Opportunities: Coinbase is expanding its European futures offerings and has received regulatory approval to operate as a national trust company, which could provide new growth momentum, while PayPal needs to find ways to accelerate growth under its new CEO's leadership.
See More
Warning on Cryptocurrency Risks
- Centralization Risks: Despite being marketed as 'decentralized', cryptocurrencies rely on centralized platforms like exchanges and custodians, exposing investors to potential asset loss risks, especially if these platforms fail.
- Historical Lessons: Bitcoin has experienced 70%-80% peak-to-trough declines during the crypto crashes of 2017-2018 and 2021-2022, highlighting that market volatility is a significant risk investors must contend with.
- Platform Collapse Cases: The failures of platforms like FTX, BlockFi, and Celsius Network turned investors into unsecured creditors, resulting in substantial losses and underscoring the importance of choosing secure platforms.
- Safety Recommendations: To mitigate risks, investors should diversify their assets across multiple platforms, utilize hardware wallets for cryptocurrency storage, and avoid high-yield staking products that seem too good to be true.
See More
Analysis of Risks in Cryptocurrency Investment
- Volatility Risk: One of the biggest risks in cryptocurrency investment is volatility, as Bitcoin experienced a peak-to-trough decline of 70%-80% during the crashes of 2017-2018 and 2021-2022, exposing investors to significant financial loss risks.
- Counterparty Risk: Although cryptocurrencies are marketed as 'decentralized', they actually rely on centralized platforms such as exchanges and custodians, meaning that if these platforms fail, investors could lose access to their tokens even if they continue trading normally on other exchanges.
- Platform Collapse Cases: The collapse of platforms like FTX, BlockFi, and Celsius Network left investors unable to access their tokens, as these platforms diverted customer funds into other risky investments, resulting in customers becoming unsecured creditors and facing substantial financial losses.
- Risk Mitigation Strategies: To mitigate risks, investors should store their tokens in hardware wallets, diversify their assets across multiple platforms, and avoid high-yield staking products that seem too good to be true, thereby protecting their investments.
See More
The Impact of AI on Cryptocurrency Security
- Increased Security Risks: The advancement of AI technologies, particularly tools like Anthropic's Mythos, may heighten the risk of cyberattacks on cryptocurrency exchanges, with companies like Coinbase and Gemini facing greater security threats due to their handling of vast amounts of personal information and funds.
- Resilience of Cryptocurrency: Despite the new threats posed by AI, the Bitcoin blockchain has never been hacked since its inception in 2009, demonstrating its security underpinned by cryptography and shared rules, which may bolster investor confidence in Bitcoin.
- Response Strategies of Exchanges: Major exchanges like Coinbase and Binance are keen to invest in AI to enhance platform security, with Coinbase's Chief Security Officer noting that AI will accelerate deep testing of software and systems, thereby strengthening defense capabilities.
- Market Sentiment Impact: Analysts suggest that while AI may create a negative narrative for crypto exchanges in the short term, these companies could emerge as pioneers in defending against AI attacks in the long run, advising investors not to withdraw due to short-term fears.
See More
Schwab Launches Crypto Trading Service for Clients
- Service Launch: Schwab has announced the rollout of a new division called Schwab Crypto, enabling clients to buy Bitcoin and Ether directly, which is expected to launch in the coming weeks to meet strong client demand for crypto investments.
- Increased Market Competition: This move places Schwab in direct competition with rivals like Robinhood, which primarily attracts a younger clientele, as Schwab aims to draw in more customers and enhance its market share through crypto trading offerings.
- Fee Structure: Schwab will charge a 0.75% fee on each trade, which may impact its appeal among younger investors compared to Robinhood's commission-free trading model, potentially affecting Schwab's competitive positioning.
- Partnership for Security: Schwab is partnering with Paxos for custody services, ensuring that crypto assets are held in a separate Schwab account distinct from brokerage accounts, which not only enhances security but also builds client trust in Schwab's crypto services.
See More
Comparison of Revenue Performance: Coinbase vs PayPal
- Coinbase Revenue Volatility: Coinbase reported $1.6 billion in revenue for Q1 2024, with a rebound to $1.8 billion in 2025, yet its net income margin of -37% highlights its heavy reliance on trading activity, revealing vulnerabilities during market fluctuations.
- PayPal Steady Growth: PayPal's revenue reached $7.7 billion in Q1 2024, maintaining a net income margin of approximately 17% despite CEO transitions and weaker forward guidance, indicating relative stability and profitability in the digital payments sector.
- Market Competition Pressure: While Coinbase's stock has risen 12% since 2023, PayPal's has declined by 19%, suggesting that PayPal faces challenges in achieving significant growth amidst fierce competition in the digital payments market, potentially impacting its future market position.
- Future Growth Potential: Coinbase aims to expand into other asset classes like stocks and commodities, and anticipates the passage of the CLARITY Act, which would provide greater regulatory certainty for cryptocurrencies, potentially driving institutional demand and enhancing future revenue growth.
See More
Analysis of Revenue Comparison Between Coinbase and PayPal
- Revenue Volatility Comparison: Coinbase has shown significant revenue fluctuations over the past eight quarters, while PayPal maintains a more stable revenue base, indicating Coinbase's high reliance on trading activity, which may threaten its future profitability.
- Profitability Discrepancy: As of December 31, 2025, Coinbase reported a net income margin of approximately -37%, contrasting with PayPal's 17% net income margin, highlighting PayPal's profitability advantage, although its lack of growth may face competitive pressures.
- Market Performance Analysis: Since 2023, Coinbase's stock has risen by 12%, while PayPal has declined by 19%, indicating that Coinbase has performed relatively better in the current market environment, but its future growth potential remains to be seen.
- Strategic Development Opportunities: Coinbase is expanding its European futures offerings and has received regulatory approval to operate as a national trust company, which could provide new growth momentum, while PayPal needs to find ways to accelerate growth under its new CEO's leadership.
See More
Warning on Cryptocurrency Risks
- Centralization Risks: Despite being marketed as 'decentralized', cryptocurrencies rely on centralized platforms like exchanges and custodians, exposing investors to potential asset loss risks, especially if these platforms fail.
- Historical Lessons: Bitcoin has experienced 70%-80% peak-to-trough declines during the crypto crashes of 2017-2018 and 2021-2022, highlighting that market volatility is a significant risk investors must contend with.
- Platform Collapse Cases: The failures of platforms like FTX, BlockFi, and Celsius Network turned investors into unsecured creditors, resulting in substantial losses and underscoring the importance of choosing secure platforms.
- Safety Recommendations: To mitigate risks, investors should diversify their assets across multiple platforms, utilize hardware wallets for cryptocurrency storage, and avoid high-yield staking products that seem too good to be true.
See More
Analysis of Risks in Cryptocurrency Investment
- Volatility Risk: One of the biggest risks in cryptocurrency investment is volatility, as Bitcoin experienced a peak-to-trough decline of 70%-80% during the crashes of 2017-2018 and 2021-2022, exposing investors to significant financial loss risks.
- Counterparty Risk: Although cryptocurrencies are marketed as 'decentralized', they actually rely on centralized platforms such as exchanges and custodians, meaning that if these platforms fail, investors could lose access to their tokens even if they continue trading normally on other exchanges.
- Platform Collapse Cases: The collapse of platforms like FTX, BlockFi, and Celsius Network left investors unable to access their tokens, as these platforms diverted customer funds into other risky investments, resulting in customers becoming unsecured creditors and facing substantial financial losses.
- Risk Mitigation Strategies: To mitigate risks, investors should store their tokens in hardware wallets, diversify their assets across multiple platforms, and avoid high-yield staking products that seem too good to be true, thereby protecting their investments.
See More
The Impact of AI on Cryptocurrency Security
- Increased Security Risks: The advancement of AI technologies, particularly tools like Anthropic's Mythos, may heighten the risk of cyberattacks on cryptocurrency exchanges, with companies like Coinbase and Gemini facing greater security threats due to their handling of vast amounts of personal information and funds.
- Resilience of Cryptocurrency: Despite the new threats posed by AI, the Bitcoin blockchain has never been hacked since its inception in 2009, demonstrating its security underpinned by cryptography and shared rules, which may bolster investor confidence in Bitcoin.
- Response Strategies of Exchanges: Major exchanges like Coinbase and Binance are keen to invest in AI to enhance platform security, with Coinbase's Chief Security Officer noting that AI will accelerate deep testing of software and systems, thereby strengthening defense capabilities.
- Market Sentiment Impact: Analysts suggest that while AI may create a negative narrative for crypto exchanges in the short term, these companies could emerge as pioneers in defending against AI attacks in the long run, advising investors not to withdraw due to short-term fears.
See More
