- Net income in the third quarter reached $1.79 billion, up from $1.13 billion a year earlier.
- Net profit surged to $433 million compared with just $75.5 million in the prior year.
- Transaction fee revenue rose 83% to $1 billion amid the crypto market upswing.
The rally in the crypto market delivered a stronger-than-expected third quarter for Coinbase Global, as the exchange reported significant gains in both revenue and profit driven by booming trading activity and record results in its services business.
Those impressive results — which coincided with Bitcoin reaching all-time highs during the quarter — underscore the company’s successful strategy of supporting sophisticated traders and expanding its institutional offerings.
The news pushed Coinbase shares higher by as much as 2.6% in after-hours trading.
Overall financial results improved substantially year over year.
The company reported net income of $433 million, or $1.50 per share, a marked increase from $75.5 million in the same quarter last year.
Net revenue for the quarter was $1.79 billion, up from $1.13 billion a year earlier.
That growth was fueled by a sharp rise in trading volume, which totaled $295 billion during the quarter, up notably from $185 billion in the comparable period last year.
Two engines of growth: trading and services
Revenue growth was supported by strong performance across Coinbase’s two main business segments.
Transaction fee revenue — the company’s traditional bread-and-butter — rose 83% year over year to reach $1 billion.
Coinbase CFO Alesia Haas told Brian Sozzi, editorial director at Yahoo Finance, that this increase was driven by more sophisticated market participants.
“We launched this new white-glove service offering which has generated significant traction, allowing us to retain and expand these advanced traders on our platform,” she said.
Meanwhile, the company’s subscription and services business — which includes stablecoin revenue, staking, and interest — increased 34% to a record $747 million, reflecting successful diversification efforts.
Regulatory clarity driving momentum
Coinbase credited a more favorable regulatory environment in Washington with opening up new opportunities, particularly in the stablecoin sector.
Actions in July by the Trump administration to develop a federal framework for stablecoins provided a meaningful boost.
“We are accelerating payments through stablecoin adoption, which we expect to continue given supportive policy and ongoing adoption by financial institutions and organizations for payment and treasury needs,” the company said in a shareholder letter.
With accelerating regulatory clarity, crypto rails are positioned to drive more global GDP, and we believe Coinbase is well positioned to lead.
The company focused on USDC, the second-largest stablecoin, which generated $354 million in revenue. The average USDC held in Coinbase products reached an all-time high of more than $15 billion during the quarter.
Strategic moves to capture the institutional market
Coinbase has aggressively expanded its institutional footprint through acquisitions and partnerships.
The $2.9 billion acquisition of derivatives exchange Deribit in May has already paid dividends. “Our institutional trading revenue grew more than 120% this quarter,” Haas said.
The company has also embedded itself deeper into the traditional financial system through significant partnerships with major U.S. banks.
These include a credit card partnership with JPMorgan Chase, a crypto-as-a-service agreement with PNC, and a crypto payments collaboration with Citigroup.
To further those efforts, Coinbase filed for a national trust bank charter earlier this month.