Coinbase (COIN) reported a stronger-than-expected third quarter, driven by a surge in trading activity, a rebound in asset prices and continued growth in its subscription and services businesses. The US-based exchange reported total revenue of $1.9 billion, up 58% from $1.2 billion in the same period last year.
Shares rose 3% in aftermarket trading.
Transaction revenue, which remains the largest share of Coinbase’s business, reached $1 billion, up from $365 million a year ago. Trading volumes reached $295 billion, the company reported, driven by renewed interest in crypto markets, particularly among retail users, whose trading volume increased 37% from the previous quarter.
Adjusted EBITDA was $801 million, compared to $512 million in the third quarter of 2024, reflecting a more profitable business mix and tight control of operating expenses, down 9% from the previous quarter. Net profit was $433 million.
Coinbase highlighted the growth of its consumer and institutional trading arms. Institutional trading revenue more than doubled to $135 million, fueled in part by the acquisition of crypto options platform Deribit, which contributed $52 million in revenue after the deal closed in August. Meanwhile, consumer trading revenue reached $844 million, up 30% from the second quarter, driven by higher volumes of long-tail assets and a growing base of advanced traders.
“The third quarter was a good quarter for Coinbase,” the company wrote in a letter to shareholders. “We delivered strong financial results, maintained our focus on shipping innovative products, and continued to lay the foundation for Everything Exchange. »
Beyond trading, subscription and services revenue increased 14% quarter-over-quarter to $747 million. Stablecoin-related revenue contributed $355 million as average USDC balances held on Coinbase reached an all-time high of $15 billion, the company said. Blockchain rewards revenue also saw an increase, increasing 28% to $185 million as the prices of Ethereum and Solana increased.
A noteworthy update: Coinbase has confirmed that its layer 2 network, Base, is now profitable. Base’s revenue increased in the third quarter due to more transactions and higher Ethereum. price, although lower fees per transaction offset some of the gains. Nonetheless, Coinbase said Base’s speed and low costs have made it the “trusted network of choice” for developers and businesses building on-chain.
The exchange also closed the quarter with $11.9 billion in U.S. dollar resources, bolstered by a $3 billion convertible debt raise and an increase in cash from operations.
Coinbase cautioned investors not to extrapolate current results, citing the volatility inherent in crypto markets, but said it expects October trading revenue to reach around $385 million and fourth-quarter subscription revenue to be between $710 million and $790 million.
