Coinbase Global, Inc.: Q3 FY2025 earnings call

What management said about Q3 FY2025, from the documents filed with the SEC on 30 October 2025: letter to shareholders. Guidance figures: 1 raised, 5 new. The quarter’s numbers.

Key takeaways

Revenue rose 25% sequentially: Total revenue was $1.9 billion, up 25% Q/Q. Transaction revenue was $1.0 billion, up 37%. Subscription and services revenue was $747 million, up 14%. Source
Net income of $433 million: Net income was $433 million, Adjusted Net Income $421 million, and Adjusted EBITDA $801 million. Diluted EPS was $1.50, against $0.28 a year earlier. Source
Institutional revenue more than doubled: Institutional transaction revenue was $135 million, up 122% Q/Q, with Deribit contributing $52 million on record options volume. Source
USDC market cap reached $74 billion: USDC market capitalization rose about $12 billion in Q3 to an all-time high of $74 billion, with Coinbase customers accounting for the largest share of that growth. Source
Total operating expenses fell 9%: Total operating expenses fell $134 million to $1.4 billion. Q2 had included $307 million of data theft expenses, which did not recur at that level. Source
Core cost lines rose 14%: Technology, G&A and sales and marketing rose 14% to $1.1 billion on headcount and USDC rewards. Deribit added $30 million, including $16 million of deal amortization. Source
Total trading volume reached $295 billion: Total trading volume was $295 billion, up 24% Q/Q, below spot-market growth as lower stablecoin-pair volume weighed. Institutional volume was $236 billion. Source
USD resources reached $11.9 billion: USD resources were $11.9 billion, up $2.6 billion or 28% Q/Q, after a $3.0 billion convertible debt issuance in August. Net of $7.2 billion long-term debt, $4.7 billion. Source

“With regulatory clarity accelerating, crypto rails are set to power more of global GDP, and we believe Coinbase is positioned to lead.”
Coinbase Global, Inc., letter to shareholders

Guidance

Area	Period	Figure	Against last quarter
Subscription and services revenue Source	Q4 2025	$710-$790 million	New
Technology and development plus general and administrative expenses Source	Q4 2025	$925-$975 million	New
Sales and marketing expenses Source	Q4 2025	$215-$315 million	New
Transaction revenue Source	October 2025	approximately $385 million	New
Depreciation and amortization Source	Q4 2025	approximately $70 million	New
Share repurchase authorization Source	Program authorization, October 2025	$2.0 billion	Raised from $1.0 billion

What changed from last quarter

New guidance: Q4 2025 guidance given for subscription and services revenue, transaction expenses, technology and G&A, and sales and marketing. Source
Guidance raised: Share repurchase authorization raised from $1.0 billion to $2.0 billion in October 2025. Source
New: Deribit acquisition closed August 14, bringing options exchange into the group. Source
New: U.S. perpetual futures launched in July, trading 24/7 with up to 10x intra-day leverage. Source
New: Derivatives rebates and incentives scaled back; they are recognized as contra revenue. Source
New: Adjusted Net Income definition revised to newly exclude gains and losses on investments. Source

Results and growth drivers

Revenue rose 25% sequentially: Total revenue was $1.9 billion, up 25% Q/Q. Transaction revenue was $1.0 billion, up 37%. Subscription and services revenue was $747 million, up 14%. Source
Net income of $433 million: Net income was $433 million, Adjusted Net Income $421 million, and Adjusted EBITDA $801 million. Diluted EPS was $1.50, against $0.28 a year earlier. Source
Diluted share count rose 5%: Weighted average fully diluted share count was 292 million, including 263 million common shares and 29 million dilutive shares. Source

Transaction revenue by segment

Consumer transaction revenue up 30%: Consumer trading volume was $59 billion, up 37% Q/Q. Advanced trading mix rose relative to Simple trading, helped by long-tail listings and a white glove service. Source
Institutional revenue more than doubled: Institutional transaction revenue was $135 million, up 122% Q/Q, with Deribit contributing $52 million on record options volume. Source
Derivatives rebates scaled back: Management began scaling back derivatives rebates and incentives, recognized as contra revenue, given momentum across the derivatives product portfolio. Source
Other transaction revenue rose 26%: Other transaction revenue was $68 million, driven mainly by instant transfer activity. Base revenue also rose on higher ETH price and transaction count. Source

“We are accelerating payments through stablecoin adoption, which we anticipate will continue given policy tailwinds”
Coinbase Global, Inc., letter to shareholders

Stablecoin, rewards and lending income

Stablecoin revenue rose 7%: Stablecoin revenue was $355 million. Average USDC in Coinbase products rose 9% to $15 billion; average off-platform USDC rose 12% to $53 billion. Source
USDC market cap reached $74 billion: USDC market capitalization rose about $12 billion in Q3 to an all-time high of $74 billion, with Coinbase customers accounting for the largest share of that growth. Source
Blockchain rewards rose 28%: Blockchain rewards revenue was $185 million, helped by average ETH and SOL prices up 81% and 29%, partly offset by lower average reward rates. Source
Institutional loan balances at record: Average institutional loan balances rose 25% Q/Q to a record $1.2 billion, with double-digit growth in active customers. Source
Partner earn-outs lifted other revenue: Other subscription and services revenue was $143 million, helped by episodic earn-outs from ecosystem partners and higher custodial fee revenue. Source

Operating expenses and headcount

Total operating expenses fell 9%: Total operating expenses fell $134 million to $1.4 billion. Q2 had included $307 million of data theft expenses, which did not recur at that level. Source
Core cost lines rose 14%: Technology, G&A and sales and marketing rose 14% to $1.1 billion on headcount and USDC rewards. Deribit added $30 million, including $16 million of deal amortization. Source
Data theft costs of $48 million: Other operating expenses were $61 million, down 80% Q/Q, including $48 million for the data theft incident disclosed in May, versus $307 million in Q2. Source
Headcount up 12%: Full-time employees rose 12% Q/Q to 4,795. G&A rose 18%, mostly from headcount added to customer service and global compliance. Source

“As always, we continue to urge caution in extrapolating these results.”
Coinbase Global, Inc., letter to shareholders

Margins and non-GAAP measures

Adjusted Net Income excludes investment swings: Adjusted Net Income excludes $424 million of net pre-tax gains on crypto investments and $400 million of net pre-tax losses on other investments. Source
Adjusted Net Income definition revised: The revised definition newly excludes gains and losses on investments. On the previous definition, Q3 Adjusted Net Income would have been $118 million. Source
Transaction expense ratio at 14%: Transaction expenses were $253 million, or 14% of net revenue, against the mid-teens level set for Q3, as lower derivatives rebates offset higher blockchain rewards fees. Source
Effective tax rate 14%: The effective tax rate was 14%, below the 21% U.S. statutory rate, mainly due to deductible stock-based compensation. Source

Trading volume and assets on platform

Total trading volume reached $295 billion: Total trading volume was $295 billion, up 24% Q/Q, below spot-market growth as lower stablecoin-pair volume weighed. Institutional volume was $236 billion. Source
Assets on Platform reached $516 billion: Assets on Platform ended Q3 at $516 billion, covering USDC and crypto assets held or managed for customers, including custody services. Source
Assets Under Custody reached $300 billion: Assets Under Custody reached an all-time high of $300 billion, citing native unit inflows, ETF custody and asset price gains. Source

Products and customers

Perpetual futures launched in U.S.: CFTC-regulated perpetual futures launched in July, with 24/7 trading and up to 10x intra-day leverage. U.S. crypto derivatives market share reached an all-time high. Source
Coinbase One Card usage grew: Coinbase One Card has over $100 million in spend since launch, with card members depositing over $200 million over the same period. Source
Base remains the top L2: Management says Base remains the #1 L2, and its cost efficiency has made it the network of choice for a growing number of enterprises and developers. Source
Stablecoin payment products rolled out: Payment APIs and B2B payments UI/API began rollout, and Embedded Wallets fully launched; both settle in USDC on Base. Source

Capital, liquidity and credit

USD resources reached $11.9 billion: USD resources were $11.9 billion, up $2.6 billion or 28% Q/Q, after a $3.0 billion convertible debt issuance in August. Net of $7.2 billion long-term debt, $4.7 billion. Source
Deribit cash and share consideration: Cash paid for acquisitions was $688 million, mostly Deribit's net cash spend. Deribit also used nearly 11 million Class A shares as consideration. Source
Buyback authorization raised to $2.0 billion: The board raised the repurchase authorization from $1.0 billion to $2.0 billion in October and extended it to part of long-term debt. The program does not obligate repurchases. Source
Bitcoin holdings increased $299 million: The company increased bitcoin holdings by $299 million in Q3 through weekly purchases for its crypto investment portfolio. Source
Credit and counterparty exposure of $1.1 billion: Credit and counterparty risk excluding banks was $1.1 billion, mostly $916 million of collateralized customer loans, plus $217 million held at third-party venues. Source
Loans require full collateral: Management says loans require at least 100% collateral, including recent facilities to BTC miners, and are subject to rigorous risk monitoring. Source

Q4 cost and revenue drivers

Acquisitions drive about half of cost rise: About half of the Q/Q increase in technology and G&A comes from the Deribit and Echo acquisitions; the rest is largely headcount. Source
Headcount growth expected to slow: Management expects headcount to grow more slowly in Q4 than in Q3, which it said is the main remaining driver of the technology and G&A increase. Source
Sales and marketing depends on two factors: The sales and marketing range depends on performance marketing activity and on USDC balances in Coinbase products, which drive USDC rewards. Source
Subscription revenue tied to USDC and subscribers: Management ties the Q4 subscription revenue range to USDC market capitalization growth and the Coinbase One subscriber base. Source

Coming up, as management said on 30 October 2025

Base and Solana bridge mainnet due Q4: The Base and Solana bridge is in testnet; mainnet support is planned for Q4 2025. Source
Stablecoin adoption expected to grow: Management expects stablecoin adoption to keep growing, citing the GENIUS Act and institutional and payment provider pipelines. Source

Figures management reported

Figure	Reported
Total trading volume Source	$295 billion
Institutional trading volume Source	$236 billion
Consumer trading volume Source	$59 billion
Assets on Platform Source	$516 billion
Assets Under Custody Source	$300 billion
USDC market capitalization Source	$74 billion
Average USDC in Coinbase products Source	$15 billion
Average institutional loan balances Source	$1.2 billion
Share of U.S. BTC and ETH ETF assets custodied Source	over 80%

Risks management discussed

Operational: Data theft incident cost $48 million in Q3 after $307 million in Q2, including customer reimbursements and direct legal costs. Source
Financial: Credit and counterparty exposure includes $217 million held at third-party venues, in addition to collateralized customer loans. Source
External: Management expects subscription revenue growth to be partly offset by market expectations of interest rate cuts in Q4. Source
Demand: Average reward rates fell by high single digits for ETH and SOL, partly offsetting the price-driven rise in blockchain rewards revenue. Source
Demand: Management urged caution in extrapolating results, including the October transaction revenue figure. Source

Earlier plans management reported on

Not stated: Management refers to the Everything Exchange vision laid out last quarter and says it made progress in Q3. Source
Met: Stock-based compensation was $222 million, up 13% Q/Q, which management described as in line with its expectations. Source
Not stated: The Q3 technology and G&A range was revised to add $10 million of Deribit costs, which the initial range had excluded. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

Coinbase Global, Inc.Condensed Consolidated Balance Sheets(In thousands, except per share data)(unaudited) Coinbase Global, Inc.Condensed Consolidated Statements of Operations(In thousands, except per share data)(unaudited) Coinbase Global, Inc.Condensed Consolidated Statements of Cash Flows(In thousands)(unaudited) Supplemental Disclosures of Cash Flow Information Reconciliations of Non-GAAP Financial Measures

Reconciliation of Net Income to Adjusted EBITDA

Forward-looking statements notice

Q3 was a strong quarter for Coinbase. We drove solid financial results, maintained focus on shipping Financial Update Q3’25 Results helped drive Advanced trading volumes and amplified our concerted efforts to attract and retain high priority Subscription and Services Revenue Operating Expenses ($M)OPERATING EXPENSESQ3’24Q4’24Q1’25Q2’25Q3’25Transaction expense171.8317.0303.0245.3253.3% of net revenue15%14%15%17%14%Technology and development377.4368.7355.4387.3430.6Sales and marketing164.8225.8247.3236.2260.3General and administrative330.4362.5394.3353.7418.4Losses (gains) on crypto assets held for operations, net(0.1)(16.2)34.4(8.7)(35.7)Other operating expenses (income), net(8.6)(20.3)(5.9)308.061.3Total operating expenses1,035.71,237.61,328.51,521.91,388.2Full-time employees (end of quarter)3,6723,7723,9594,2794,795 consideration paid for acquisitions, a majority of which was the net cash spend associated with Deribit. Net of Q4’25 Outlook Building the future of money, step by step Q3, we made it simple to pay, earn, borrow, lend, and run businesses onchain. It’s how crypto starts to replace Forward-Looking Statements Non-GAAP Financial Measures •stock-based compensation expense, which has been, and will continue to be for the foreseeable future, a significant recurring expense for our business Product Update Fellow Shareholders, Financial Update innovative products, and continued building the foundation of the Everything Exchange. traders through a new white glove service offering. our $7.2 billion of long-term debt, we had $4.7 billion in $USD resources. and improve on traditional finance. and an important part of our compensation strategy; (in thousands)Q3’24Q4’24Q1’25Q2’25Q3’25Net income .......................................................................$75,495$1,291,176$65,608$1,428,900$432,552Adjusted to exclude the following:(Benefit from) provision for income taxes ..............(6,914)205,70016,848394,87369,591Interest expense.........................................................20,53020,53720,51120,53521,774Depreciation and amortization .................................30,69532,99533,33333,90150,078Stock-based compensation expense......................248,416221,984190,729196,160222,069Data Theft Incident losses ........................................ - - - 306,65447,976Losses (gains) on crypto assets held for investment, net ...........................................................120,507(476,153)596,651(362,053)(423,903)Other (income) expense, net(1) ................................(40,105)(7,191)6,188(1,506,905)380,518Adjusted EBITDA ....................................................$448,624$1,289,048$929,868$512,065$800,655

Results. Total revenue in Q3 was $1.9 billion, up 25% Q/Q. Transaction revenue was $1.0 billion, up September 30,December 31,20252024AssetsCurrent assets:Cash and cash equivalents ..................................................................................................$8,676,275$8,543,903Restricted cash and cash equivalents................................................................................78,86738,519USDC.......................................................................................................................................3,696,4411,241,808Customer custodial funds.....................................................................................................5,672,0376,158,949Crypto assets held for operations .......................................................................................161,14582,781Loan receivables....................................................................................................................859,056475,370Crypto assets held as collateral ..........................................................................................1,017,382767,484Crypto assets borrowed........................................................................................................346,008261,052Accounts receivable, net ......................................................................................................308,423265,251Marketable investments........................................................................................................1,093,395 - Other current assets..............................................................................................................184,160277,536Total current assets ..........................................................................................................22,093,18918,112,653Crypto assets held for investment ............................................................................................2,597,2771,552,995Strategic investments .................................................................................................................401,728374,161Deferred tax assets.....................................................................................................................324,096941,298Goodwill ........................................................................................................................................4,004,1121,139,670Intangible assets, net .................................................................................................................1,417,82346,804Other non-current assets ...........................................................................................................513,142374,370Total assets ..................................................................................................................$31,351,367$22,541,951Liabilities and Stockholders’ EquityCurrent liabilities:Customer custodial fund liabilities.......................................................................................$5,672,037$6,158,949Current portion of long-term debt ........................................................................................1,268,081 - Crypto asset borrowings.......................................................................................................386,823300,110Obligation to return collateral...............................................................................................1,026,945792,125Accrued expenses and other current liabilities .................................................................835,468690,136Total current liabilities ......................................................................................................9,189,3547,941,320Long-term debt ............................................................................................................................5,933,4474,234,081Other non-current liabilities .......................................................................................................205,34289,708Total liabilities ....................................................................................................................15,328,14312,265,109Commitments and contingenciesStockholders’ equity:Preferred stock, $0.00001 par value; 500,000 shares authorized and zero shares issued and outstanding at each of September 30, 2025 and December 31, 2024..... - - Class A and B common stock, $0.00001 par value; 10,500,000 (Class A 10,000,000, Class B 500,000) shares authorized at September 30, 2025 and December 31, 2024; 268,736 (Class A 227,157, Class B 41,579) shares issued and outstanding at September 30, 2025 and 253,640 (Class A 209,762, Class B 43,878) shares issued and outstanding at December 31, 2024 ....................................32Additional paid-in capital.......................................................................................................9,131,7225,365,990Accumulated other comprehensive income (loss) ...........................................................3,538(50,051)Retained earnings .................................................................................................................6,887,9614,960,901Total stockholders’ equity ................................................................................................16,023,22410,276,842Total liabilities and stockholders’ equity...................................................................$31,351,367$22,541,951 Three Months Ended September 30,Nine Months Ended September 30,2025202420252024Revenue:Net revenue.....................................................$1,792,984$1,128,597$5,173,399$4,096,216Other revenue .................................................75,70976,596226,797196,175Total revenue .............................................1,868,6931,205,1935,400,1964,292,391Operating expenses:Transaction expense......................................253,318171,781801,605580,665Technology and development.......................430,585377,4401,173,2751,099,561Sales and marketing ......................................260,272164,770743,800428,617General and administrative...........................418,446330,3871,166,499937,738Gains on crypto assets held for operations, net ................................................(35,740)(142)(10,077)(55,484)Other operating expense (income), net ......61,280(8,556)363,40628,203Total operating expenses.........................1,388,1611,035,6804,238,5083,019,300Operating income......................................480,532169,5131,161,6881,273,091Interest expense ..................................................21,774 20,53062,82060,108(Gains) losses on crypto assets held for investment, net.....................................................(423,903)120,507(189,305)(210,902)Other expense (income), net .............................380,518 (40,105)(1,120,199)(21,883)Income before income taxes ...................502,14368,5812,408,3721,445,768Provision for (benefit from) income taxes ........69,591(6,914)481,312157,878Net income .................................................$432,552$75,495$1,927,060$1,287,890Net income attributable to common stockholders:Basic.................................................................$432,552$75,455$1,927,060$1,287,106Diluted ..............................................................$437,095$75,459$1,938,812$1,296,949Net income per share:Basic.................................................................$1.65$0.30$7.49$5.23Diluted ..............................................................$1.50$0.28$6.85$4.76Weighted-average shares of common stock used to compute net income per share:Basic.................................................................262,831248,834257,332245,986Diluted ..............................................................291,958267,440283,165272,239 Select MetricsMETRICS ($M)Q3’24Q4’24Q1’25Q2’25Q3’25Net Revenue1,1292,1971,9601,4201,793Net Income751,291661,429433Adjusted EBITDA4491,289930512801Q3’25 Coinbase Results vs. OutlookMETRICCOINBASE Q3 OUTLOOK (Aug 2025)Q3 ACTUALSSubscription and Services Revenue$665-$745 million$747 millionTransaction Expensesas a percentage of net revenueMid-Teens as a percentage of net revenueDependent on revenue mix14%Technology and Development +General and Administrative Expensesincluding stock-based compensation$810-$860 million *Including $210 million in stock-based compensation and $10 million (ex. amortization) from Deribit$849 millionincluding $208 million instock-based compensationSales and Marketing Expensesincluding stock-based compensation$190-$290 millionIncluding ~$15 million in stock-based compensation$260 millionincluding $14 million instock-based compensation Q3 subscription and services revenue was $747 million, up 14% Q/Q. Strong native unit inflows drove another Coinbase Q4 2025 OutlookMETRICOUTLOOKSubscription and Services Revenue$710-$790 millionTransaction ExpensesMid-Teens as a percentage of net revenueDependent on revenue mixTechnology & Development +General & Administrative Expenses$925-$975 millionIncluding ~$220 million in stock-based compensationSales and Marketing Expenses$215-$315 millionIncluding ~$14 million in stock-based compensation We see crypto adoption unfolding in 3 phases: people first invest through trading, then use financial services, This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than Adjusted EBITDA
losses directly related to the Data Theft Incident; 37% Q/Q. Subscription and services revenue was $747 million, up 14% Q/Q. Total operating Nine Months Ended September 30,20252024Cash flows from operating activitiesNet income ....................................................................................................................................$1,927,060$1,287,890Adjustments to reconcile net income to net cash (used in) provided by operating activities:Depreciation and amortization.................................................................................................117,31294,523Stock-based compensation expense .....................................................................................608,958690,854Deferred income taxes..............................................................................................................486,49861,075Gains on crypto assets held for operations, net ...................................................................(10,077)(55,484)Gains on crypto assets held for investment, net...................................................................(189,305)(210,902)(Gains) losses on investments, net.........................................................................................(1,075,198)15,141Other operating activities, net ..................................................................................................6,83031,745Net changes in operating assets and liabilities.....................................................................(2,510,846)(322,616)Net cash (used in) provided by operating activities...................................................................(638,768)1,592,226Cash flows from investing activitiesFiat loans originated ..................................................................................................................(1,246,352)(1,270,063)Proceeds from repayment of fiat loans ..................................................................................819,4551,075,000Business combinations, net of cash acquired.......................................................................(687,634) - Purchases of crypto assets held for investment ...................................................................(679,931)(18,486)Dispositions of crypto assets held for investment ................................................................226,37152,586Other investing activities, net...................................................................................................(84,292)(72,006)Net cash used in investing activities ............................................................................................(1,652,383)(232,969)Cash flows from financing activitiesIssuances of convertible senior notes, net ............................................................................2,957,1351,246,025Purchases of capped calls .......................................................................................................(224,250)(104,110)Customer custodial fund liabilities...........................................................................................(600,398)(550,776)Fiat received as collateral.........................................................................................................499,417525,699Fiat received as collateral returned.........................................................................................(514,494)(410,438)Taxes paid related to net share settlement of equity awards .............................................(308,803)(117,225)Other financing activities, net...................................................................................................87,48993,488Net cash provided by financing activities ....................................................................................1,896,096682,663Net (decrease) increase in cash, cash equivalents, and restricted cash and cash equivalents .......................................................................................................................................(395,055)2,041,920Effect of exchange rates on cash, cash equivalents, and restricted cash and cash equivalents .......................................................................................................................................89,86819,664Cash, cash equivalents, and restricted cash and cash equivalents, beginning of period ...14,610,4429,555,429Cash, cash equivalents, and restricted cash and cash equivalents, end of period..............$14,305,255$11,617,013 Changes in operating assets and liabilities affecting cash were as follows (in thousands): We laid out our vision of an Everything Exchange last quarter, and made progress in Q3 by increasing the quarter of all-time highs including average USDC balances, average loan balances across our institutional Total $USD ResourcesTOTAL: $11,893MMONEY MARKET FUNDS$7,042MCORPORATE CASH $1,524M$3,216MUSDC*$111MCORPORATE CASH HELDAT THIRD-PARTY VENUES*Net of USDC loaned or pledged as collateral.Note: Figures presented may not sum precisely due to rounding. and ultimately engage with a rich app ecosystem. Coinbase is building for every step. We provide a trusted Financing: Powering Liquidity Across the Crypto Economy statements of historical fact are forward-looking statements. These statements include, but are not limited to, statements regarding our future operating results and Further, we made important progress in expanding tradable assets for our retail customers in Q3: more spot Note: Figures presented may not sum precisely due to rounding. In addition to our results determined in accordance with GAAP, we believe Adjusted EBITDA, a non-GAAP financial performance measure, is useful information to help •net gains or losses on our crypto assets held for investment; and expenses declined $134 million or 9% Q/Q to $1.4 billion. Technology & development, general & number of tradable spot assets, expanding our derivatives offerings, and continuing to lay the groundwork for financing products, and Assets Under Custody. We ended Q3 with $516 billion in total Assets on Platform. venue for individuals and institutions to trade and custody assets, the first step in bringing people onchain. We financial position, including for the fourth quarter ending December 31, 2025; anticipated future expenses and investments; the expected benefits and impacts of our assets through CEX listings and DEX integration, more derivatives through the launch of perpetual futures and Nine Months Ended September 30,20252024USDC ..............................................................................................................................$(2,441,455)$(294,104)Income taxes, net ..........................................................................................................(142,348)(19,341)Other current and non-current assets ........................................................................(64,958)(40,826)Other current and non-current liabilities ....................................................................137,91531,655Net changes in operating assets and liabilities .....................................................$(2,510,846)$(322,616) •Institutional financing hit record highs with all-time high average loan balances and customer count investors evaluate our operating performance because it: enables investors to compare this measure and component adjustments to similar information provided by administrative, and sales & marketing expenses collectively increased 14% to $1.1 billion, which •other expense (income), net, which represents net gains or losses on investments and other financial instruments, and other non-operating income and additional pillars. By increasing tradable spot assets, our platform now covers approximately 90% of total crypto deliver financial services that put those assets to work, from staking, rewards, and spending, to powering acquisition of Deribit; expectations relating to certain of our key financial and operating metrics; our business strategy and plans; expectations relating to legal and 24/7 futures trading in the U.S. Stablecoin revenue was $355 million in Q3, up 7% Q/Q. Average USDC balances held in Coinbase products has achieved double-digit average quarterly growth over the past eight quarters, driven by corporates, peer companies and our past financial performance; provides additional company-specific adjustments for certain items that may be included in income from includes $30 million attributable to Deribit. Full-time employees increased 12% Q/Q to 4,795. Net expense activity. asset market capitalization. Our derivatives business reached an all-time high share across several markets, businesses. And we provide the infrastructure that lets this economy scale, with Base Chain for fast, low-cost regulatory proceedings; expectations relating to our industry, the regulatory environment, market conditions, trends and growth; expectations relating to customer increased 9% Q/Q to $15 billion. Meanwhile, average off-platform USDC balances increased 12% Q/Q to $53 miners, market makers, and continued demand from hedge funds and asset managers. operations but that we do not consider to be normal, recurring, operating expenses (or income) necessary to operate our business given our operations, revenue income was $433 million, Adjusted Net Income was $421 million, and Adjusted EBITDA was $801 Institutional Transaction Revenue. Institutional Trading Volume was $236 billion, up 22% Q/Q. Institutional including U.S. crypto futures and global crypto options, with the launch of U.S. perpetuals and 24/7 futures transactions, and USDC as a trusted digital dollar. This quarter, we continued advancing across all three behaviors and preferences; our market position; potential market opportunities; and our objectives for future operations. The words “believe,” “may,” “will,” “estimate,” Adjusted Net Income and Adjusted Net Income per Share billion. generating activities, business strategy, industry, and regulatory environment; and provides investors with visibility to a measure management uses to evaluate our million. transaction revenue was $135 million, up 122% Q/Q. Several factors drove the increase in revenue, most trading, and the close of the Deribit acquisition. phases, staying focused on our mission to increase economic freedom worldwide. “potential,” “continue,” “anticipate,” “intend,” “expect,” “could,” “would,” “project,” “plan,” “target,” and similar expressions are intended to identify forward-looking •We launched cross-margining for institutional customers between U.S. futures on Coinbase ongoing operations and for internal planning and forecasting purposes. For example: There are limitations related to Adjusted Net Income and Adjusted Net Income per Share rather than net income and net income per share, which are the nearest notably Deribit (closed on August 14), which contributed $52 million of revenue in Q3 driven by continued statements. Forward-looking statements are based on management’s expectations, assumptions, and projections based on information available at the time the We believe Coinbase continues to be the best place to use stablecoins. USDC market capitalization increased Derivatives Exchange (offered through Coinbase Financial Markets, our FCM) and spot on Coinbase
Outlook. We expect October transaction revenue to be approximately $385 million. As always, we We are accelerating payments through stablecoin adoption, which we anticipate will continue given policy Crypto as an Investment: We are building the most trusted, comprehensive venue to access, price, and GAAP equivalents, respectively, including that Adjusted Net Income and Adjusted Net Income per Share each exclude the tax-effected impact of our crypto investment growth of options trading leading to all-time high notional volumes. Deribit and Coinbase collectively achieved statements were made. These forward-looking statements are subject to a number of risks, uncertainties, and assumptions, including, among others: our ability to by approximately $12 billion from the end of Q2 to the end of Q3, and Coinbase customers accounted for the Exchange, delivering roughly 2x capital efficiency versus our nearest competitor in the U.S.
We believe it is useful to exclude certain non-cash expenses, such as depreciation and amortization and stock-based compensation, from Adjusted continue to urge caution in extrapolating these results. * Revised to include $10 million in Technology and Development + General and Administrative expenses related to our acquisition of Deribit, which closed August 14, 2025 and was excluded from initial range of $800-850 million disclosed on July 31, 2025. The revised range excludes the impact of acquisition-related amortization which was not part of the August 14, 2025 guidance update. tailwinds, and ongoing adoption from financial institutions and corporates for payment and treasury needs. In execute trades across spot and derivatives, and we’re expanding it in line with our Everything Exchange vision gains/losses and of our marketable and strategic investments gains/losses. over $840 billion of notional derivatives trading volume in Q3 on the back of innovative new products launched successfully execute our business and growth strategy and generate future profitability; market acceptance of our products and services; our ability to further largest portion of that balance growth. Our rewards program continued to drive USDC growth and adoption, EBITDA because the amounts of such expenses can vary significantly from period to period and may not directly correlate to the underlying performance Q3, USDC reached an all-time high of $74 billion in market capitalization, and average USDC held in Coinbase to bring all tradable assets onto a single platform. In Q3, we executed on the foundations of that vision: Building a Full-Stack Stablecoin Payments Platform to date. Given the momentum we are seeing across our growing portfolio of derivatives products, we have METRICQ4’25 OUTLOOKCOMMENTARYSubscription and Services Revenue$710-$790 millionDriven by growth in USDC market capitalization + Coinbase One subscribers, offset by interest rate cutsTransaction ExpensesMid-Teens as a percentage of net revenueDependent on revenue mixTechnology & Development +General & Administrative Expenses$925-$975 millionIncluding ~$220 million in stock-based compensationGrowth driven by costs related to Echo & Deribit acquisitions + headcountSales and Marketing Expenses$215-$315 millionIncluding ~$14 million in stock-based compensationRange driven by performance marketing opportunities and USDC rewards penetrate our existing customer base and expand our customer base; our ability to develop new products and services; our ability to expand internationally; failure to and we expanded the program to offer competitive rewards to our Institutional customers in Q3. of our business operations. Additional Information The following is a reconciliation of cash, cash equivalents, and restricted cash and cash equivalents products reached an all-time high of over $15 billion. Additionally, we continue to scale payments with USDC, expanding tradable spot assets (including integrated DEX access), scaling U.S. perpetual futures, adding Transaction Revenue begun to scale back rebates and incentives (which, as a reminder, is recognized as contra revenue). obtain applicable regulatory approvals and satisfy other closing conditions in a timely manner or otherwise for any acquisition we make; the success of any (in thousands): •We see payments as crypto’s next big use case, with stablecoins offering a new payments channel •We believe it is useful to exclude certain items that we do not consider to be normal, recurring, cash operating expenses and therefore, not reflective of our new partnerships, and crypto rewards for purchases through the CB1 Card. global options with Deribit, and growing custody. Q3 transaction expenses were $253 million, up 3% Q/Q, driven by an increase in blockchain rewards fees __________________ USDC Balances & RevenueQ3’25Average Market Cap ($B)Coinbase Stablecoin Revenue ($M)USDC in Coinbase Products15159Off-platform USDC53196Total68355 For more information, including reconciliations of these non-GAAP financial measures to their nearest GAAP equivalents, please see the reconciliation of GAAP to acquisitions or investments that we make; the effects of increased competition in our markets; our ability to stay in compliance with applicable laws and regulations; September 30,20252024Cash and cash equivalents..............................................................................................$8,676,275$7,723,806Restricted cash and cash equivalents ...........................................................................78,86731,881Customer custodial cash and cash equivalents ...........................................................5,550,1133,861,326Total cash, cash equivalents, and restricted cash and cash equivalents..............$14,305,255$11,617,013 We consider our crypto assets held for investment and certain crypto assets held as collateral as other liquidity enabling faster, cheaper, global transactions that are well suited for agentic commerce and micro ongoing business operations. For example, we exclude: (i) other expense (income), net, as the income and expenses recognized in this line item are not We expect October transaction revenue to be approximately $385 million As always, we continue to urge given higher average asset prices in the quarter, and also increased customer trading activity in the quarter. Additionally, we saw strength in Coinbase Prime trading, driven by more active customers and deeper product non-GAAP results tables in this shareholder letter. Investors are encouraged to review the related GAAP financial measure and the reconciliations, and not to rely on (1)See Note 15. Other expense (income), net to the Condensed Consolidated Financial Statements in our Quarterly Report on Form 10-Q for the stock price fluctuations; market conditions across the cryptoeconomy, including crypto asset price volatility; and general market, political, and economic conditions, resources available to us. In Q3, we increased our bitcoin holdings by $299 million, driven by weekly With regulatory clarity accelerating, crypto rails are set to power more of global GDP, and we believe Coinbase Spot & Simple Trading: Expanding Access to the Assets Users Want payments. In Q3, we took key steps toward that vision. part of our core operating activities and are considered non-operating activities under GAAP, (ii) gains and losses on crypto assets held for investment quarter ended on September 30, 2025 filed with the SEC on October 30, 2025 for additional details. caution in extrapolating these results. Offsetting this was lower rebates and commissions as we scaled back the incentives program in our derivatives engagement, with a growing number of Prime customers now engaging with 3+ products. any single financial measure to evaluate our business. including interest rate fluctuations, inflation, tariffs, instability in the global banking system, economic downturns, and other global events, including regional wars and purchases, for our crypto investment portfolio. As of September 30, 2025, the fair market value of our crypto is positioned to lead. We’re progressing toward the Everything Exchange vision, and scaling payments by because such investments are considered primarily long-term holdings, and (iii) losses directly related to the data theft incident announced on the Current Crypto as an App Platform: The next chapter goes beyond financial services to a vibrant onchain app business. •Adding more assets is consistently among the top requests from customers. In Q3, we added the ◦Began rollout of Payment APIs and B2B payments UI/API, a single integration to embed Subscription and Services Revenue conflicts and government shutdowns. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the assets held for investment and our crypto assets held as collateral were $2.6 billion and $1.0 billion, advancing stablecoin adoption with USDC. Other Transaction Revenue. Other transaction revenue was $68 million, up 26% Q/Q primarily driven by an Report on Form 8-K we filed with the SEC on May 15, 2025 (the “Data Theft Incident”), including voluntary customer reimbursements, direct legal costs, Reconciliation of Net Income to Adjusted Net Income and Net Income per Share to Adjusted Net ecosystem. It starts with Base Chain, a fast, low-cost L2 delivering sub-second, sub-cent transactions, paired ability to trade more than 40 thousand assets in the Consumer app via our decentralized exchange stablecoin checkout, send 24/7 payouts, automate treasury, open virtual accounts, and settle extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may respectively. When including these crypto assets, total available resources totaled $15.5 billion. Technology and development expenses were $431 million, up 11% Q/Q, primarily driven by an increase in Income per Share increase in instant transfer activity which is typically correlated with the growth in Trading Volume. To a lesser and reward payments, if any, in connection with the threat actor’s arrest and conviction. We do not plan on engaging in regular trading of crypto assets, We expect Q4 subscription and services revenue to be within $710-$790 million. Our Q4 range reflects the with stablecoins as trusted digital money for seamless payments. It comes to life in the Base App, the front (DEX) integration on Base (powered by an integrated self-custody wallet), and we now support in USDC on Base, backed by Coinbase security, liquidity, and distribution. make. In light of these risks, uncertainties, and assumptions, our actual results could differ materially and adversely from those anticipated or implied in the forward- headcount, including personnel from Deribit. To a lesser extent, we also saw higher variable software spend extent, Base revenue growth was driven by higher average ETH price and a higher number of transactions, and, as an operating company, our investing activities in crypto are not part of our revenue generating activities, which are based on transactions on our growth of both USDC market capitalization (which reached a new all-time high in October) and our Coinbase door to onchain where builders launch and users discover apps across trading, social, payments, messaging, Share Repurchase Program approximately 90% of total crypto asset market capitalization for trading on our platform. We believe Revenue Discussion looking statements. Further information on risks that could cause actual results to differ materially from forecasted results are, or will be included, in our filings we (in thousands, except per share amounts)Q3’24Q4’24Q1’25Q2’25Q3’25Net income...........................................................................$75,495$1,291,176$65,608$1,428,900$432,552Adjusted to exclude the following:Losses (gains) on crypto assets held for investment, net ..............................................................120,507(476,153)596,651(362,053)(423,903)Losses (gains) on investments, net............................478(3,587)(3,327)(1,472,121)400,250Tax effect of non-GAAP net income adjustments.....(28,674)119,852(134,821)438,48211,845Adjusted Net Income ...............................................$167,806$931,288$524,111$33,208$420,744Revised definition newly adjusts for:(Losses) gains on investments, net............................$(478)$3,587$3,327$1,472,121$(400,250)Tax effect of non-GAAP net income adjustments related to investments ..................................................116(854)(812)(359,639)97,812Adjusted Net Income, previous definition.............$167,444$934,021$526,626$1,145,690$118,306Weighted-average shares outstanding used in per share calculations below:Basic ....................................................................................248,834251,506253,878255,188262,831Diluted ..................................................................................267,440276,752271,251278,913291,958Net income per share(1):Basic .....................................................................................$0.30$5.13$0.26$5.60$1.65Diluted ..................................................................................$0.28$4.68$0.24$5.14$1.50Adjusted Net Income per Share:Basic .....................................................................................$0.67$3.70$2.06$0.13$1.60Diluted ..................................................................................$0.63$3.37$1.93$0.12$1.44 related to ongoing infrastructure projects and amortization of certain costs related to our acquisition of Deribit. partially offset by lower average revenue per transaction as a result of our continued focus on scaling the platform and the sales of subscriptions and services. ◦Fully launched Embedded Wallets, enabling native, low-friction wallets inside apps to reduce One subscriber base, offset by market expectations of interest rate cuts. games, and more. DEX assets help turbocharge our centralized exchange (CEX) by surfacing early demand and price The following is a supplemental schedule of non-cash investing and financing activities (in make with the Securities and Exchange Commission (SEC) from time to time, including our Quarterly Report on Form 10-Q for the quarter ended September 30, 2025 In October 2024, our board of directors authorized and approved a share repurchase program, which provided network. Base remains the #1 L2, and its speed, scalability, and cost efficiency has made it the trusted network Total Revenue ($M)TOTAL REVENUEQ3’24Q4’24Q1’25Q2’25Q3’25Transaction RevenueConsumer, net483.31,347.11,095.5649.9843.5Institutional, net55.3141.398.960.8135.0Other transaction revenue, net34.067.667.853.567.7Total Transaction Revenue572.51,556.01,262.2764.31,046.3Subscription and Services RevenueStablecoin revenue246.9225.9297.5332.5354.7Blockchain rewards154.8214.9196.6144.5184.6Interest and finance fee income64.065.763.159.364.8Other subscription and services revenue90.4134.6140.9119.5142.7Total Subscription and Services Revenue556.1641.1698.1655.8746.7Net Revenue1,128.62,197.01,960.31,420.11,793.0Corporate interest and other income76.674.674.077.175.7Total Revenue1,205.22,271.62,034.31,497.21,868.7 onboarding drop-off and eliminate app switching, so users can pay, earn, and hold value in- •We believe Adjusted EBITDA is useful to measure a company’s operating performance without regard to items such as stock-based compensation Blockchain rewards revenue was $185 million, up 28% Q/Q. Growth was primarily driven by the average prices thousands): discovery. When assets meet our standards, they will move to our CEX, where they should benefit General and administrative expenses were $418 million, up 18% Q/Q. A majority of the quarterly cost growth filed with the SEC on October 30, 2025. Except as required by law, we assume no obligation to update these forward-looking statements, or to update the reasons if Expenses Scaling Base Chain: Fast, Cheap, Open, and Decentralized for the repurchase of up to $1.0 billion of our outstanding Class A common stock without expiration, and in of choice for a growing number of enterprises and developers. app with instant USDC settlement on Base. When paired with our APIs, any app can go expense, depreciation and amortization expense, interest expense, other expense (income), net, and provision for (benefit from) income taxes that can of ETH and SOL increasing 81% and 29%, respectively, in the quarter. Partially offsetting this was continued Nine Months Ended September 30,20252024Non-cash consideration paid for business combinations............................................$3,573,092$ - Crypto assets borrowed ...................................................................................................2,326,401353,325Crypto assets borrowed repaid .......................................................................................2,238,233176,990Crypto assets received as collateral ..............................................................................1,988,8792,791,949Crypto assets received as collateral returned ..............................................................1,789,8612,439,342Crypto asset loan receivables originated ......................................................................1,853,0951,244,113Crypto asset loan receivables repaid .............................................................................1,899,5921,230,544Additions of crypto asset investments............................................................................176,6455,981Cumulative-effect adjustment due to the adoption of ASU No. 2023-08 .................. - 561,489 from deeper liquidity, faster execution. was driven by headcount as we expanded our customer service and global compliance efforts. actual results differ materially from those anticipated in the forward-looking statements. October 2025, our board of directors (i) increased the aggregate repurchase authorization under the program onchain with one integration. vary substantially from company to company depending upon their financing, capital structures, and the method by which assets were acquired. decline to average rewards rates - an indicator of protocol maturity - which were down high single digits on Product Update. In Q3, Coinbase continued advancing across all three phases of crypto adoption. As an We expect technology & development and general & administrative expenses to be between $925-$975 •Network activity increased Q/Q, led by trading, social, payments, and lending apps. The ecosystem TRADING VOLUME ($B)Q3’24Q4’24Q1’25Q2’25Q3’25Consumer3494784359Institutional151345315194236Total185439393237295TRADING VOLUME (% OF TOTAL)Q3’24Q4’24Q1’25Q2’25Q3’25Bitcoin37%27%27%30%24%Ethereum15%10%11%15%22%XRP2%8%11%8%9%USDT15%15%13%6%3%Other crypto assets31%40%38%41%42%Total100%100%100%100%100%TRANSACTION REVENUE (% OF TOTAL)Q3’24Q4’24Q1’25Q2’25Q3’25Bitcoin35%27%26%34%24%Ethereum16%10%10%12%17%Solana11%7%10%7%7%XRP6%14%18%13%14%Other crypto assets32%42%36%34%38%Total100%100%100%100%100% from $1.0 billion to $2.0 billion and (ii) expanded the scope of the repurchases to include a portion of the Derivatives: Scaling a Durable, Global Business Sales and marketing expenses were $260 million, up 10% Q/Q. The two largest drivers of the increase were average for both ETH and SOL in Q3, as well as a slight decrease in SOL native units staked on our platform. Note: Figures presented may not sum precisely due to rounding. Adjusted Net Income and Adjusted Net Income per Share investment, we executed on the foundations of the Everything Exchange vision: expanding tradable spot million. Approximately half of the Q/Q increase is due to our acquisitions of Deribit and Echo; the remainder is now spans over 5 million tokens and 16 local-currency stablecoins. Coinbase One: Boosting Value and Increasing Options for Members aggregate principal amount of our long-term debt. This program does not obligate us to repurchase any dollar certain amortization costs related to our acquisition of Deribit, and higher USDC rewards as average customer assets (including integrated DEX access), scaling U.S. perpetual futures, adding global options platform with Note: Figures presented may not sum precisely due to rounding. largely due to headcount, which we expect to grow at a slower rate in Q4 compared to Q3. •Derivatives account for ~80% of global crypto trading volume, yet the U.S. market makes up only a Interest and finance fee income was $65 million, up 9% Q/Q. Average loan balances across our institutional In addition to our results determined in accordance with GAAP, we believe that Adjusted Net Income and Adjusted Net Income per Share, both non-GAAP financial amount or number of shares of Class A common stock or debt and may be modified, suspended, or •Flashblocks went live on mainnet, delivering ~200ms block times with sub-second, sub-cent USDC balances held in Coinbase products reached an all-time high of $15.0 billion in Q3. •We completed our rollout of Coinbase One Basic, our $4.99/month entry tier that delivers core Deribit, and strengthening custody. As a financial service, we made it simple to pay, earn, borrow, and run fraction of this volume. This presents a significant growth opportunity, and one against which we saw financing products grew 25% Q/Q to reach a new all-time high of $1.2 billion in Q3, driven by an increasingly performance measures, are useful information to help investors evaluate our operating performance. We believe it is useful to exclude tax-effected gains and losses discontinued at any time. Sales and marketing expenses are expected to be in the range of $215-$315 million. Where we fall within the transactions, an important milestone in making the network even faster and cheaper. membership benefits like zero trading fees, boosted staking rewards, and access to exclusive onchain businesses onchain. And as a new app platform, we continue to drive sub-second, sub-cent transactions on significant market share gains in Q3. In July, we launched first of its kind CFTC-regulated crypto Other operating expenses were $61 million, down 80% Q/Q. This included $48 million related to the data theft diverse client base where we saw double digit growth in active customers in the quarter. We also saw growth in on crypto assets held for investment from both Adjusted Net Income and Adjusted Net Income per Share because (i) such investments are considered primarily longrange will largely be determined by (i) whether we continue to see attractive performance marketing Spot Trading Volume is presented on a matched basis, and is categorized by the base rather than the quote asset. The majority of trading pairs on our platform utilize USD/USDC as the quote currency, and thus are not included in the breakdown by asset in the table. partner offers. Early signals of traction have been promising. We’re also seeing significant interest Base, best paired with stablecoins as trusted digital money for seamless payments. We continue to see strong Collateralized Arrangements & Financing and Counterparty Risk •We introduced the Base and Solana bridge in testnet so people and builders can move assets perpetual futures in the U.S., trading 24/7 with up to 10x intra-day leverage, and became the first U.S. incident disclosed in May, which included voluntary customer reimbursements and direct legal costs. As a interest income on custodial fiat in Q3 as average balances grew to $5.6 billion, partially offset by lower rates. term holdings, (ii) we do not plan on engaging in regular trading of crypto assets, and, (iii) as an operating company, our investing activities in crypto are not part of our opportunities throughout the remainder of the year and (ii) USDC balances held in Coinbase products, which from international users. adoption across each phase, driving our mission to increase economic freedom worldwide. between the two networks more easily, with mainnet support coming in Q4. regulated futures exchange to offer 24/7 trading in BTC, ETH, SOL, and XRP which together drove Starting in Q1’25, Custodial Fee revenue has been condensed into Other subscription and services revenue and will no longer be disclosed as a separate line item as it now comprises a smaller percentage of our subscription and services revenue. Prior periods have been recast to conform to current period presentation. reminder, in Q2, we recognized $307 million of expenses for the same. revenue generating activities, which are based on transactions on our platform and the sales of subscriptions and services. Additionally, we believe it is useful to drive USDC rewards. We maintained our longstanding commitment to operating and risk excellence in Q3. At the end of Q3, we had Other subscription and services revenue was $143 million, up 19% Q/Q driven by two primary factors: our all-time high U.S. crypto derivatives market share.
Coinbase One Card: Bringing Crypto Rewards to Fiat Payments exclude tax-effected gains and losses on our marketable and strategic investments from Adjusted Net Income and Adjusted Net Income per Share because such Webcast Information $1.1 billion in total credit and counterparty risk (excluding banks), stemming from $916 million in collateralized Stablecoins: Trusted Onchain Money Stock-based compensation expense was $222 million, up 13% Q/Q, and in-line with our outlook. Included within the expense outlook above is approximately $70 million of total depreciation and amortization investments are not part of our core operating activities and are considered non-operating activities under GAAP. •First, earn outs from ecosystem partners. As we work to drive crypto utility and build out the onchain loans to customers and $217 million held at third-party venues (including $111 million in unrestricted cash). As •In August, we closed the Deribit acquisition, bringing the #1 crypto options exchange by volume and
As we scale crypto payments, we’re also meeting customers where they are with Coinbase We will host a conference call to discuss the results for the third quarter 2025 on October 30, 2025 at 2:30 pm for Q4, reflecting an increase from historical averages driven by higher intangible amortization as a result of our •USDC market cap reached an all-time high of $74 billion in Q3. Market cap grew $12 billion from the Our effective tax rate in Q3 was 14%. Our tax rate was lower than the U.S. statutory rate of 21% primarily due ecosystem, we may continue to partner with protocols to develop products in exchange for token earn a reminder, our loans require at least 100% in collateral (including recent facilities extended to BTC miners), open interest into Coinbase and creating the most comprehensive global crypto derivatives offering One Card, a traditional credit card issued by AmEx that offers up to 4.0% cash back in the Limitations of Non-GAAP Financial Measures PT. The live webcast of the call will be available at youtube.com/@coinbase/streams. A replay of the call, as recent acquisitions. end of Q2 to the end of Q3, and Coinbase customers accounted for the largest portion of that balance to deductible stock-based compensation. outs when certain milestones are reached. These payments can be significant depending on The following is a supplemental schedule of cash paid for income taxes (in thousands): and are subject to rigorous risk monitoring. across spot, futures, perpetuals, and options. Total transaction revenue generated from trading on our platform. form of bitcoin rewards that provides a simple on-ramp for newcomers and added value for well as a transcript, will be available on our Investor Relations website at investor.coinbase.com. growth. USDC continues to outperform other major stablecoins with more than 2x YTD growth versus performance, but are inherently episodic. We believe that non-GAAP financial measures may be helpful to investors for the reasons noted above. However, non-GAAP financial measures are presented for Net income in Q3 was $433 million. Adjusted Net Income was $421 million and Adjusted EBITDA was $801 existing users. Stock-based Compensation Expense Nine Months Ended September 30,20252024Cash paid during the period for income taxes, net of refunds$147,999$ - Cash paid during the period for income taxes (prior to ASU No. 2023-09) - 113,107 the largest competitor. •We expanded our international derivatives total addressable market by adding new regulated routes supplemental informational purposes only, have limitations as analytical tools, and should not be considered in isolation or as a substitute for financial information million. •Second, growth in Custodial fee revenue. Assets Under Custody grew to $300 billion as of the end of for growth and distribution in Brazil and India. ◦Adoption is scaling, with more than $100 million in spend since launch, and everyday usage presented in accordance with GAAP. In addition, other companies, including companies in our industry, may calculate non-GAAP financial measures differently or may [1] Trading Volume is defined as the total U.S. dollar equivalent value of spot matched trades transacted between a buyer and seller through our platform during the
We believe Coinbase remains the best place to use stablecoins, with average USDC balances across Three Months Ended September 30,Nine Months Ended September 30,2025202420252024Technology and development .........................$127,253$155,411$352,585$428,863Sales and marketing ........................................13,92118,72043,35952,034General and administrative .............................80,89574,285213,014209,957Total stock-based compensation expense .$222,069$248,416$608,958$690,854 Q3, another all-time high. We continued to see strong native unit inflows, in part due to our role as the period of measurement. Share Count is translating into platform engagement with CB1 card members depositing over $200 million use other measures to evaluate their performance, all of which could reduce the usefulness of our disclosure of non-GAAP financial measures as a tool for [2] Assets on Platform is defined as the total U.S. dollar equivalent value of USDC and crypto assets held or managed on behalf of customers in digital wallets on our Coinbase products at $15 billion in Q3. Custody at Scale: Coinbase as the Default Institutional Partner primary custodian for the vast majority of crypto ETFs. Additionally, asset prices (particularly BTC and platform, including our custody services but excluding assets for which the customer holds full or partial keys, calculated based on the market price on the date of over the same period. comparison. measurement. ETH) were a significant tailwind this quarter. Our weighted average fully diluted share count for Q3 was 292 million (including 263 million common shares [3] Assets under custody is defined as the total U.S. dollar equivalent value of USDC and crypto assets held separately on behalf of customers in digital wallets within
We expect stablecoin adoption to continue to grow, propelled by the GENIUS Act passage, •Assets Under Custody (AUC) reached an all-time high of $300 billion as did share of total crypto asset our cold storage custody services, calculated based on the market price on September 30, 2025. Transaction Revenue and 29 million dilutive shares), an increase of 13 million or 5% Q/Q. In Q3, we closed the acquisition of Deribit Adjusted EBITDA [4] Adjusted Net Income is a non-GAAP financial measure that excludes $424 million in net pre-tax gains on our crypto investment portfolio (largely unrealized) and strengthening institutional appetite, widening the pipeline with payment service providers, enterprises, market capitalization driven by strong inflows from ETFs and Corporate purchases. Expenses $400 million in net pre-tax losses on other investments. which included consideration of nearly 11 million shares of Class A common stock. [5] Adjusted EBITDA is a non-GAAP financial measure. and banks. Global crypto market spot trading volumes were up 38% Q/Q, and U.S. crypto market spot volumes were up There are a number of limitations related to Adjusted EBITDA rather than net income, which is the nearest GAAP equivalent of Adjusted EBITDA. Some of these [6] Includes corporate USDC balances and USDC held on behalf of customers in eligible Coinbase products. •In October, we helped bring the first staking ETFs to the U.S. market with long-time partner Grayscale, Total Q3 operating expenses fell $134 million or 9% Q/Q to $1.4 billion. Technology & development, general & 29% Q/Q. Total Q3 transaction revenue was $1.0 billion, up 37% Q/Q. Total Trading Volume was $295 billion, Capital and Liquidity limitations are that Adjusted EBITDA excludes: Figures have been rounded for presentation purposes only. For additional financial information and a reconciliation between GAAP and non-GAAP results, please refer Base App and continue to be the primary custodian for over 80% of U.S. BTC and ETH ETF assets as of administrative, and sales & marketing expenses collectively increased 14% Q/Q to $1.1 billion, largely driven to the reconciliation of GAAP to Non-GAAP results tables in this shareholder letter and our Form 10-Q filed with the SEC on October 30, 2025. up 24% Q/Q, underperforming the spot markets primarily driven by lower volume from stablecoin pairs. __________________ quarter-end. by growth in headcount and USDC rewards (in connection with growth of USDC balances in Coinbase At the end of Q3, we had $11.9 billion in $USD resources, increasing $2.6 billion or 28% Q/Q. The increase
provision for (benefit from) income taxes; •Base App entered beta in Q3, the onchain hub for trading, mini apps, social, chat, trading, and USDC Consumer Transaction Revenue. Consumer Trading Volume was $59 billion, up 37% Q/Q, outperforming the (1)Net income per share is calculated using net income attributable to common stockholders. See Note 17. Net income per share to the products); Deribit contributed $30 million (including $16 million of deal-related amortization). Full-time was primarily driven by proceeds from our $3.0 billion convertible debt issuance in August, and an increase in
interest expense, or the cash requirements necessary to service interest or principal payments on our debt, which reduces cash available to us; payments, bundled with Base Account (universal identity) and Base Pay (express USDC checkout). Crypto as a Financial Service: Once assets are on Coinbase, the next step is utility. We're building trusted Condensed Consolidated Financial Statements in our Quarterly Report on Form 10-Q for the quarter ended on September 30, 2025 filed with U.S. spot markets. Consumer transaction revenue was $844 million, up 30% Q/Q. The mix of Advanced trading the SEC on October 30, 2025 for additional details. employees increased 12% Q/Q to 4,795. cash provided as a result of the increase in total revenue. Partially offsetting this was $688 million in cash While still early, we continue to see strong adoption. products that help people use crypto the way they use money today, only faster, cheaper, and available 24/7. In •depreciation and amortization expense and, although these are non-cash expenses, the assets being depreciated and amortized may have to be replaced volume relative to Simple trading increased in Q3. Unique token listings and rising prices in long tail assets 15 16 in the future;

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