Coinbase – COIN – earnings report Q3 2025

coinbase Shares rose nearly 3% on Thursday as the digital asset company reported better-than-expected financial results, driven largely by a resurgence in retail and institutional crypto trading on its platform, even as tokens are now just one of several assets at the center of its “exchange for everything” vision.

Coinbase’s net income for the quarter ended Sept. 30 rose to $432.6 million, or $1.50 per share, from $75.5 million, or 28 cents per share, a year ago. Earnings beat the consensus estimate of $1.10 per share reported by LSEG.

Revenue rose to $1.87 billion from $1.21 billion in the same quarter last year, beating analysts’ expectations of $1.8 billion.

Revenue from transactions rose 37% from the second quarter to $1 billion.

The rise of the centralized crypto exchange comes amid a resurgence in crypto trading fueled by efforts by U.S. federal regulators under President Donald Trump to roll back regulations on digital asset companies. In addition, the stabilization of trade relations between the USA and China in the summer months also increased investor confidence.

Coinbase also benefited from a significant increase in revenue tied to institutional activity on its platform following its nearly $3 billion acquisition of derivatives exchange Deribit.

Consumer trading activity on the platform rose 37% from the previous quarter to $59 billion. Transaction revenue from retail generated $844 million, up 30% from the previous quarter.

On the institutional side, Coinbase generated $135 million in revenue from transactions in the third quarter, up 122% from the previous quarter. The transaction volume of institutions on the stock exchange reached 236 billion dollars in the third quarter, an increase of 22% compared to the previous quarter.

Although Coinbase has seen significant gains from crypto-related transactions, CEO Brian Armstrong told investors that tokens are just one component of the company’s “exchange for everything” strategy announced earlier this year.

“The ‘change of everything’ is really central to the next chapter of what we’re building,” Armstrong said during the company’s earnings call. He said the company increased the number of tradable assets on its platform from 300 to 40,000 in the third quarter. “We’re now starting to work on the next pieces of this because we think the on-chain future of every asset class is coming, and that’s what our clients want,” he said.

As part of the strategy, Coinbase is integrating prediction markets, tokenized stocks and other offerings into its platform. According to Armstrong, the exchange’s expanding focus is crucial to its future growth as the market for digital assets of all kinds becomes not only larger but also more competitive amid regulatory headwinds.

“We’ve spent a lot of time trying to get regulatory clarity… and it’s starting to pay off, which is great. [total addressable market] “But that means a lot of new competition is coming and so we have to make sure we perform well,” Armstrong said.

Read all about Coinbase shareholder letter here.