Coinbase Global, Inc. ((COIN)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Coinbase’s latest earnings call reflected a mixed sentiment, showcasing strong financial performance and significant expansion in trading platforms and derivatives. However, concerns were raised due to increased operating expenses, headcount, and unrealized investment losses, alongside infrastructure challenges.
Record Revenue and Strong Financial Performance
Coinbase reported a remarkable total revenue of $1.9 billion for Q3 2025, with a net income of $433 million and an adjusted EBITDA of $801 million. This strong financial performance underscores the company’s robust market position and operational efficiency.
Expansion of Trading Platform
The company significantly expanded its trading platform, increasing the number of tradable assets from 300 to 40,000 through DEX integrations. Additionally, the launch of CFTC-regulated 24/7 perpetual style futures in the U.S. marks a notable milestone in their trading capabilities.
Significant Growth in Stablecoin Adoption
Coinbase played a pivotal role in the stablecoin market, with the USDC market cap reaching $74 billion and the overall stablecoin market cap hitting $300 billion. This growth highlights Coinbase’s influence and leadership in the stablecoin sector.
Derivatives Volume Growth
The acquisition of Deribit and the expansion of derivatives products led to an impressive $840 billion in total derivatives volume for Q3. This growth signifies Coinbase’s strategic focus on enhancing its derivatives offerings.
Institutional Business Growth
Institutional transaction revenue surged by 122% to $135 million, driven largely by increased derivatives and options trading. This growth reflects Coinbase’s successful penetration into the institutional market.
Headcount Increase and Operating Expenses
Coinbase experienced a 12% increase in headcount, bringing the total to 4,795 full-time employees. This growth, along with recent acquisitions, contributed to a rise in operating expenses, posing a challenge for the company’s cost management.
Unrealized Losses from Investments
The company faced a $381 million expense due to unrealized losses related to its investment in Circle, highlighting potential risks in its investment strategy.
Impact of Cloud Service Outages
Coinbase was affected by AWS outages, raising concerns about the need for a more resilient multi-cloud strategy to mitigate such infrastructure challenges in the future.
Forward-Looking Guidance
Looking ahead, Coinbase projects October transaction revenue of approximately $385 million and subscription and services revenue between $710 million and $790 million for Q4. While operating expenses are expected to rise due to acquisitions, the company anticipates a slower headcount growth rate compared to Q3.
In conclusion, Coinbase’s earnings call highlighted a strong financial performance and strategic expansions, despite challenges in operating expenses and infrastructure. The company’s forward-looking guidance suggests continued growth, albeit with cautious management of costs and investments.