Coinbase Q3 Profit Soars 475% on Crypto Trading Boom

Coinbase’s third-quarter 2025 results showcased dramatic financial improvement, with net income skyrocketing to $433 million from just $75.5 million in the same period last year. The company’s total net revenue climbed to $1.8 billion, powered by transaction revenue that nearly doubled to $1.05 billion compared to $572.5 million a year earlier. Trading volume reached $295 billion during the quarter, while assets on the platform totaled $516 billion, including $300 billion in assets under custody.

The exchange’s earnings per share of $1.50 significantly outperformed the $1.06 per share projected by analysts from LSEG and marked a substantial improvement from the $0.28 per share reported in the same quarter last year. Adjusted net income stood at $421 million, with adjusted EBITDA reaching $801 million, reflecting the company’s operational efficiency during periods of market volatility. Subscription and services revenue also demonstrated strong growth, rising 34.3% year over year to $747 million.

Following the earnings release, Coinbase’s stock gained more than 3% in after-hours trading, signaling investor confidence in the company’s performance and strategic direction. The results highlight how cryptocurrency exchanges often benefit from market volatility, as price swings typically drive increased trading activity and higher transaction fee revenue.

The quarter’s exceptional performance was driven by significant cryptocurrency market movements that created ideal conditions for trading platforms. Digital assets rallied in July as crypto-friendly policies implemented by U.S. President Donald Trump attracted institutional investor interest, sending Bitcoin to new highs. However, weak economic data in August triggered fears of a potential recession, causing a selloff as investors pulled back from riskier assets.

This volatility proved beneficial for Coinbase, as more traders took advantage of price swings, resulting in higher transaction volumes and revenue. The company achieved 90% coverage of the total crypto market capitalization and added support for trading more than 40,000 assets through its DEX integration. Institutional services showed particular strength, with the platform reporting all-time highs in institutional loan balances and stablecoin usage.

David Bartosiak, Stock Strategist at Zacks Investment Research, noted that ‘Coinbase is cash-rich and growth-ready. The company isn’t just trading coins anymore. It’s building the backbone of the new financial internet.’ This perspective reflects the company’s evolution beyond simple cryptocurrency trading toward becoming a comprehensive financial infrastructure provider.

Coinbase’s Q3 growth was further accelerated by strategic acquisitions and product expansions. The company completed its acquisition of Deribit, with the combined entities recording over $840 billion in notional derivatives trading volume. This move significantly strengthened Coinbase’s position in the derivatives market, complemented by the introduction of the first 24×7 perpetual-style crypto contracts in the United States.

Stablecoin performance emerged as another key growth driver, with stablecoin revenue reaching $355 million, up 7% quarter over quarter. The USDC market cap climbed to an all-time high of $74 billion, while the average USDC held in Coinbase products rose by 9% to $15 billion. The platform credited part of this growth to the GENIUS Act, passed earlier this year, which established a regulatory framework for stablecoins and provided much-needed clarity for market participants.

Beyond trading services, Coinbase is expanding crypto utility through products like the One Card, which has seen over $100 million in spending since launch. In a letter to shareholders, the company articulated its focus on ‘building the everything exchange’—a single platform for all tradable assets. This vision positions Coinbase not merely as a cryptocurrency exchange but as a comprehensive financial services platform capable of serving both retail and institutional clients across multiple asset classes.