Coinbase reported a significant profit increase for the third quarter of 2025, driven by cryptocurrency market volatility and heightened trading activity. The exchange's net income reached $433 million, surpassing analyst expectations. Trading volumes hit $295 billion amid price swings influenced by U.S. policy shifts and economic concerns.
Coinbase announced its Q3 2025 financial results on Thursday, revealing a net income of $433 million for the quarter ended September 30, a sharp rise from $75.5 million in the same period last year. This 475% increase beat Wall Street estimates, with earnings per share at $1.50 compared to the projected $1.06 from LSEG analysts and last year's $0.28.
Total net revenue climbed to $1.8 billion, fueled by trading volume of $295 billion and assets on the platform totaling $516 billion, including $300 billion under custody. Transaction revenue jumped to $1.05 billion from $572.5 million a year earlier, while subscription and services revenue grew 34.3% to $747 million. Adjusted net income was $421 million, and adjusted EBITDA reached $801 million. Following the release, Coinbase's stock rose more than 3% in after-hours trading.
The surge aligns with crypto market dynamics: digital assets rallied in July due to crypto-friendly policies under U.S. President Donald Trump, boosting Bitcoin to new highs and attracting institutional interest. However, August's weak economic data sparked recession fears, leading to a selloff as investors retreated from risky assets. Such volatility typically increases trading fees for exchanges like Coinbase.
In strategic moves, Coinbase completed its acquisition of Deribit during the quarter, achieving over $840 billion in notional derivatives trading volume. The company launched the first 24/7 perpetual-style crypto contracts in the U.S. and expanded to cover 90% of the total crypto market capitalization, supporting over 40,000 assets via DEX integration. Stablecoin revenue hit $355 million, up 7% quarter-over-quarter, with USDC's market cap reaching an all-time high of $74 billion and average holdings in products rising 9% to $15 billion. The GENIUS Act, passed earlier in 2025, provided a regulatory framework for stablecoins, aiding growth. Over $100 million in spending occurred via the One Card since its launch.
"Coinbase is cash-rich and growth-ready," said David Bartosiak, Stock Strategist at Zacks Investment Research. "The company isn’t just trading coins anymore. It’s building the backbone of the new financial internet."