Loading...
01/09 23:13
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call summary and Q&A session reveal positive indicators: strong Q3 revenue outlook, strategic investments due to regulatory clarity, and growth in subscription services. Partnerships with major institutions like JPMorgan and Shopify, as well as the integration of Deribit, bolster the sentiment. Although there are concerns about AWS outages and unclear responses on certain topics, the overall narrative is positive, with a focus on market expansion and product development. These factors suggest a likely positive stock price movement.
Total Revenue $1.9 billion, driven by continued product execution.
Adjusted EBITDA $801 million, reflecting strong financial performance.
Net Income $433 million, including a $424 million gain from the ongoing fair value remeasurement of the crypto investment portfolio and a $381 million expense due to unrealized losses related to the investment in Circle.
Adjusted Net Income $421 million, excluding the above-mentioned gain and expense.
Consumer Spot Trading Volume $59 billion, a 37% increase quarter-over-quarter, driven by price increases in the long tail of assets and efforts to attract high-priority traders.
Consumer Transaction Revenue $844 million, a 30% increase quarter-over-quarter, attributed to a higher mix of advanced trading volume with a lower fee rate.
Institutional Transaction Revenue $135 million, up 122%, primarily driven by derivatives and the acquisition of Deribit, which contributed $52 million.
Subscription and Services Revenue $747 million, a 14% increase quarter-over-quarter, supported by strong native unit inflows across USDC balances, average loan balances, and assets under custody.
Assets on Platform $516 billion at the end of Q3.
Operating Expenses $1.4 billion, a 9% decrease, with technology & development, general and administrative, and sales and marketing expenses collectively increasing 14% due to headcount and USDC rewards growth.
Full-Time Employees 4,795, a 12% increase.
Everything Exchange: Expanded spot coverage, growing derivatives offering, and laying groundwork for new asset classes. Added DEX integrations, increasing tradable assets from 300 to over 40,000 in the U.S. Launched CFTC-regulated 24/7 perpetual futures in the U.S. and acquired Deribit, the #1 crypto options venue.
Stablecoin Payments: Accelerated stablecoin adoption with USDC. Coinbase customers held $15 billion of USDC on platform, contributing to USDC's $74 billion market cap. USDC grew more than 2x compared to its largest competitor.
Market Expansion: Institutional transaction revenue grew 122%, driven by derivatives and the acquisition of Deribit. Consumer spot trading volume grew 37% to $59 billion, and consumer transaction revenue grew 30% to $844 million.
Financial Performance: Total revenue of $1.9 billion, adjusted EBITDA of $801 million, and net income of $433 million. Operating expenses decreased 9% to $1.4 billion.
Headcount Growth: Increased full-time employees by 12% to 4,795.
Regulatory Clarity: Positioned to lead as finance moves to crypto rails with increasing regulatory clarity. Partnering with companies like Citi to bring financial services on-chain.
Regulatory Challenges: The company is navigating increasing regulatory clarity, which, while presenting opportunities, also poses challenges in terms of compliance and adapting to new regulations.
Market Volatility: The company's financial performance is tied to crypto market conditions, which are inherently volatile and could adversely impact trading volumes and revenue.
Operational Costs: Operating expenses increased due to headcount growth and acquisitions, which could pressure profitability if revenue growth does not keep pace.
Investment Risks: Unrealized losses related to investments, such as the $381 million expense tied to Circle, highlight risks associated with the company's investment portfolio.
Competitive Pressures: The company faces competition in the crypto and financial services space, which could impact its ability to attract and retain customers.
Integration Risks: Recent acquisitions, including Deribit, bring integration challenges and increased expenses, which could affect operational efficiency.
Q4 Transaction Revenue: Expected to be approximately $385 million.
Q4 Subscription and Services Revenue: Expected to range between $710 million and $790 million, driven by higher average crypto prices and growth in the Coinbase One subscriber base.
Q4 Operating Expenses: Expected to range between $925 million and $975 million for technology, development, and general administrative expenses, with approximately $100 million increase at the midpoint due to acquisitions and headcount growth.
Q4 Sales and Marketing Expenses: Expected to range between $215 million and $315 million, influenced by performance marketing opportunities and USDC balances in Coinbase products.
Q4 Depreciation and Amortization: Expected to be approximately $70 million, driven higher by amortization of intangibles from recent acquisitions.
2025 Headcount Investment: Significant investment in headcount made to capitalize on opportunities and accelerate the vision of the Everything Exchange.
2026 Operating Expense Growth: Sequential rate of operating expense growth expected to slow compared to Q4 2025.
The selected topic was not discussed during the call.
The earnings call summary and Q&A session reveal positive indicators: strong Q3 revenue outlook, strategic investments due to regulatory clarity, and growth in subscription services. Partnerships with major institutions like JPMorgan and Shopify, as well as the integration of Deribit, bolster the sentiment. Although there are concerns about AWS outages and unclear responses on certain topics, the overall narrative is positive, with a focus on market expansion and product development. These factors suggest a likely positive stock price movement.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
