Financial Performance and Growth Drivers
Coinbase reported $1.9B in revenue for Q3 2025, a significant 58% year-over-year increase, surpassing Wall Street expectations. The company achieved a net income of $433M, with earnings per share reaching $1.50, exceeding the $1.10 forecast. Analysts had predicted quarterly revenue to be $1.8B, a figure that Coinbase comfortably surpassed.
This substantial growth was primarily driven by increased user activity, which surged as Bitcoin and Ethereum reached all-time highs. This heightened market interest consequently boosted transaction volumes on the Coinbase platform. The company recorded $1B in transaction revenue, a notable increase from $764M in the previous quarter and $573M during the same period in 2024. This revenue figure encompasses both retail and institutional trading activity.
Strengthening Reserves and Diversifying Revenue Streams
During the third quarter, Coinbase significantly increased its Bitcoin reserves by acquiring 2,772 BTC, marking one of the largest quarterly purchases in the company's history. CEO Brian Armstrong confirmed this acquisition, although the precise timing was not disclosed. This strategic expansion of its Bitcoin holdings is intended to bolster the company's resilience against market volatility.
Coinbase also reported a substantial increase in stablecoin revenue, which totaled $355M, representing a 43% rise from Q3 2024. This income is largely derived from interest generated by Circle's USDC, supplemented by an additional $185M in rewards, including staking payouts. These financial results indicate a gradual shift, with the company becoming less reliant on transaction fees as a primary revenue source.
Developments in Layer 2 and Future Initiatives
In parallel with its financial performance, Coinbase continues to advance its Ethereum Layer 2 network, Base, which was launched in 2023. The company is actively evaluating the potential creation of a token for Base. A report from JPMorgan suggests that such a token could generate $12B in value and significantly support ecosystem expansion. Base has already established itself as a leader in stablecoin usage among Layer 2 chains, currently holding over $4.6B in stablecoins.
Coinbase has also formally applied for a national bank charter within the United States. This move, if approved, would enable the company to broaden its operational scope and access enhanced financial privileges. Furthermore, Coinbase is exploring the introduction of tokenized asset offerings, although specific details regarding the assets involved and a potential launch timeline have not yet been revealed.
Market Reaction and Stock Performance
Following the release of its Q3 earnings report, Coinbase's shares saw a 2% increase, trading at $341 in post-market activity. This rise contributes to a year-to-date gain of 33% for the company's stock, which had previously reached a record high of $444 in July.