Open the filing on EDGARCoinbase Global, Inc. Coinbase Global, Inc. Coinbase Global, Inc. Reconciliations of Non-GAAP Financial Measures Consolidated Balance Sheets Consolidated Statements of Operations Consolidated Statements of Cash Flows Supplemental Disclosures of Cash Flow Information (In thousands, except per share data) (In thousands, except per share data) (In thousands) Reconciliation of Net Income (Loss) to Adjusted EBITDA
(in thousands)Q4’24Q1’25Q2’25Q3’25Q4’25FY’25FY’24Net income (loss) ..............................$1,291,176$65,608$1,428,900$432,552$(666,733)$1,260,327$2,579,066Adjusted to exclude the following:Provision for (benefit from) income taxes ................................205,70016,848394,87369,591(219,574)261,738363,578Interest expense ..........................20,53720,51120,53521,77422,59385,41380,645Depreciation and amortization ..32,99533,33333,90150,07871,116188,428127,518Stock-based compensation expense ........................................221,984190,729196,160222,069230,482839,440912,838Data Theft Incident losses (recoveries), net........................... - - 306,65447,976(9,451)345,179 - (Gains) losses on crypto assets held for investment, net ..............(476,153)596,651(362,053)(423,903)718,162528,857(687,055)Other (income) expense, net(1)..(7,191)6,188(1,506,905)380,518419,305(700,894)(29,074)Adjusted EBITDA .....................$1,289,048$929,868$512,065$800,655$565,900$2,808,488$3,347,516 2025 was a strong year for Coinbase, both operationally and financially. We executed consistently against our Financial Update Q4’25 Results Revenue another quarter of all-time high revenue in Q4), continued to be an area of strong performance for us. We also We store more crypto than any other company: Assets on Platform increased 3x over the last 3 years USDC Balances & RevenueQ4’25Average Market Cap ($B)Coinbase Stablecoin Revenue ($M)USDC in Coinbase Products18172Off-platform USDC58192Total76364 Expenses Q4 transaction expenses were $219 million, down 14% Q/Q. The Q/Q decline was primarily driven by lower We consider our crypto assets for investment and certain crypto assets held as collateral as other liquidity Building the future of finance, step by step Most Trusted •Scaling Coinbase One 24/7 payouts, automate treasury workflows, open virtual accounts, and settle in USDC on 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 Financial Update TL;DR Fellow Shareholders, Assets on Platform is defined as the total U.S. dollar equivalent value of crypto assets and payment stablecoins held or managed on behalf of customers in digital wallets on our 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 last day of the quarter.
Base with one integration. goals, delivering or outperforming our revenue and expense guidance every quarter. We successfully launched saw growth across both U.S. and International derivatives in the quarter, as compared to an otherwise softer blockchain reward fees related to lower asset prices, and lower payment processing and account verification resources available to us. In Q4, we increased our bitcoin holdings by $39 million, driven by weekly purchases and an important part of our compensation strategy; Total revenue increased 9% Y/Y in 2025, and average quarterly revenue has increased over the last 3 •Results. Coinbase delivered total revenue growth of 9% Y/Y to $7.2 billion despite a softer December 31,20252024AssetsCurrent assets:Cash and cash equivalents ..................................................................................................$11,285,452$9,308,266Restricted cash and cash equivalents................................................................................334,318347,169Customer custodial funds.....................................................................................................5,347,4286,158,949Crypto assets held for operations .......................................................................................120,83182,781Loan receivables....................................................................................................................1,354,692644,165Crypto assets held as collateral ..........................................................................................822,827767,484Crypto assets borrowed........................................................................................................318,849261,052Accounts receivable, net ......................................................................................................307,119265,251Marketable investments........................................................................................................309,765 - Other current assets..............................................................................................................187,164277,536Total current assets ..........................................................................................................20,388,44518,112,653Crypto assets held for investment ............................................................................................1,998,8711,552,995Strategic investments............................................................................................................622,985374,161Deferred tax assets.....................................................................................................................570,819941,298Software and equipment, net ....................................................................................................264,573200,080Goodwill ........................................................................................................................................4,168,9671,139,670Intangible assets, net .................................................................................................................1,397,79446,804Other non-current assets ...........................................................................................................259,378174,290Total assets ..................................................................................................................$29,671,832$22,541,951Liabilities and Shareholders’ EquityCurrent liabilities:Customer custodial fund liabilities.......................................................................................$5,347,428$6,158,949Accounts payable ..................................................................................................................117,60563,316Current portion of long-term debt ........................................................................................1,269,585 - Short-term borrowings ..........................................................................................................452,105374,268Obligation to return collateral...............................................................................................826,883792,125Accrued expenses and other current liabilities .................................................................687,676552,662Total current liabilities ......................................................................................................8,701,2827,941,320Long-term debt ............................................................................................................................5,937,0344,234,081Other non-current liabilities .......................................................................................................240,45889,708Total liabilities ....................................................................................................................14,878,77412,265,109Commitments and contingenciesShareholders’ equity:Preferred stock, $0.00001 par value; 500,000 shares authorized and zero shares issued and outstanding at each of December 31, 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 December 31, 2025 and December 31, 2024; 267,836 (Class A 226,797, Class B 41,039) shares issued and outstanding at December 31, 2025 and 253,640 (Class A 209,762, Class B 43,878) shares issued and outstanding at December 31, 2024 ....................................32Additional paid-in capital.......................................................................................................8,566,8545,365,990Accumulated other comprehensive income (loss) ...........................................................4,973(50,051)Retained earnings .................................................................................................................6,221,2284,960,901Total shareholders’ equity ...............................................................................................14,793,05810,276,842Total liabilities and shareholders’ equity ..................................................................$29,671,832$22,541,951 Three Months Ended December 31,Year Ended December 31,2025202420252024Revenue:Net revenue ........................................................................................$1,710,039$2,197,030$6,883,438$6,293,246Other revenue.....................................................................................71,09074,607297,887270,782Total revenue .................................................................................1,781,1292,271,6377,181,3256,564,028Operating expenses:Transaction expense .........................................................................218,625317,0421,020,230897,707Technology and development ..........................................................497,330368,6911,670,6051,468,252Sales and marketing..........................................................................314,777225,8271,058,577654,444General and administrative ..............................................................453,143362,5191,619,6421,300,257Losses (gains) on crypto assets held for operations, net ............30,781(16,241)20,704(71,725)Other operating (income) expense, net..........................................(7,280)(20,270)356,1267,933Total operating expenses ............................................................1,507,3761,237,5685,745,8844,256,868Operating income .........................................................................273,7531,034,0691,435,4412,307,160Interest expense ......................................................................................22,593 20,53785,41380,645Losses (gains) on crypto assets held for investment, net.................718,162(476,153)528,857(687,055)Other expense (income), net .................................................................419,305 (7,191)(700,894)(29,074)(Loss) income before income taxes...........................................(886,307)1,496,8761,522,0652,942,644(Benefit from) provision for income taxes............................................(219,574)205,700261,738363,578Net (loss) income..........................................................................$(666,733)$1,291,176$1,260,327$2,579,066Net (loss) income attributable to common shareholders:Basic ....................................................................................................$(666,733)$1,290,896$1,260,327$2,577,755Diluted..................................................................................................$(666,733)$1,294,542$1,277,314$2,591,248Net (loss) income per share:Basic ....................................................................................................$(2.49)$5.13$4.85$10.42Diluted..................................................................................................$(2.49)$4.68$4.45$9.48Weighted-average shares of common stock used to compute net (loss) income per share:Basic ....................................................................................................268,267251,506260,088247,374Diluted..................................................................................................268,267276,752287,209273,377 Select MetricsFULL YEARMETRICS ($M)Q4’24Q1’25Q2’25Q3’25Q4’2520242025Net Revenue2,1971,9601,4201,7931,7106,2936,883Net Income (Loss)1,291661,429433(667)2,5791,260Adjusted EBITDA1,2899305128015663,3482,808Q4’25 Coinbase Results vs. OutlookMETRICCOINBASE Q4 OUTLOOK (Oct 2025)Q4 ACTUALSSubscription and Services Revenue$710-$790 million$727 millionTransaction Expensesas a percentage of net revenueMid-Teens as a percentage of net revenueDependent on revenue mix13%Technology and Development +General and Administrative Expensesincluding stock-based compensation$925-$975 millionIncluding ~$220 million in stock-based compensation$950 millionIncluding $216 million in stock-based compensationSales and Marketing Expensesincluding stock-based compensation$215-$315 millionIncluding ~$14 million in stock-based compensation$315 millionIncluding $14 million in stock-based compensation Our operating expenses have grown to support our expanding ambition of the Everything Exchange plus the We delivered record highs across the board for product performance in 2025, including for Coinbase Total •Trusted partner of choice for thousands of institutions using crypto, including over 270+ Crypto-as-a- ◦Paid Coinbase One Subscribers reached nearly 1 million, more than 3x in 3 years, driven by This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than Adjusted EBITDA the Everything Exchange to the delight of our customers, drove growth and diversification of revenue, and market for spot market volumes. expenses. for our crypto investment portfolio. As of December 31, 2025, the fair market value of our crypto assets held for •net losses or recoveries directly related to the Data Theft Incident; years driven by scale and diversity in our product portfolio. market in Q4. ◦Fully launched Embedded Wallets, enabling low-friction wallets directly inside apps to reduce Year Ended December 31,20252024Cash flows from operating activitiesNet income.......................................................................................................................$1,260,327$2,579,066Adjustments to reconcile net income to net cash provided by operating activities:Depreciation and amortization ...................................................................................188,428127,518Stock-based compensation expense........................................................................839,440912,838Deferred income taxes ................................................................................................238,308151,315Losses (gains) on crypto assets held for operations, net ......................................20,704(71,725)Losses (gains) on crypto assets held for investment, net .....................................528,857(687,055)(Gains) losses on investment, net .............................................................................(680,520)11,553Other operating activities, net ....................................................................................62,24611,336Changes in operating assets and liabilities: ............................................................Accounts receivable, net.........................................................................................(1,983)(100,568)Customer custodial funds in transit .......................................................................57,15246,829Income taxes, net.....................................................................................................(147,449)77,099Other current and non-current assets...................................................................(47,228)48,564Other current and non-current liabilities ...............................................................108,101(2,835)Net cash provided by operating activities......................................................................2,426,3833,103,935Cash flows from investing activitiesLoans originated...........................................................................................................(12,453,223)(7,364,193)Proceeds from repayment of loans ...........................................................................11,664,5307,189,488Assets pledged as collateral ......................................................................................(16,009)(100,929)Return of assets pledged as collateral .....................................................................16,188147,096Business combinations, net of cash and cash equivalents acquired ..................(742,038) - Purchases of crypto assets held for investment .....................................................(787,821)(35,182)Dispositions of crypto assets held for investment...................................................266,54691,925Purchase of investments ............................................................................................(377,426)(59,915)Dispositions of investments........................................................................................490,2985,001Other investing activities, net .....................................................................................(110,595)(74,294)Net cash used in investing activities ..............................................................................(2,049,550)(201,003)Cash flows from financing activitiesIssuance of common stock upon exercise of stock options, net of repurchases ..................................................................................................................78,286126,140Issuances of convertible senior notes, net...............................................................2,957,1351,246,025Repurchase of common stock ...................................................................................(790,195) - Purchases of capped calls..........................................................................................(224,250)(104,110)Customer custodial fund liabilities .............................................................................(936,205)1,638,087Customer collateral received......................................................................................871,389567,806Return of customer collateral .....................................................................................(891,967)(544,228)Taxes paid related to net share settlement of equity awards................................(402,791)(117,225)Proceeds from short-term borrowings ......................................................................626,428122,566Repayments of short-term borrowings .....................................................................(580,664)(48,407)Other financing activities, net .....................................................................................33,11616,424Net cash provided by financing activities ......................................................................740,2822,903,078Net increase in cash, cash equivalents, and restricted cash and cash equivalents .........................................................................................................................1,117,1155,806,010Effect of exchange rates on cash, cash equivalents, and restricted cash and cash equivalents................................................................................................................92,850(48,367)Cash, cash equivalents, and restricted cash and cash equivalents, beginning of period ..................................................................................................................................15,683,4559,925,812Cash, cash equivalents, and restricted cash and cash equivalents, end of period $16,893,420$15,683,455 growth of the crypto markets emerging with regulatory clarity on the horizon. Growing engagement with Trading Volume, Coinbase Crypto Trading Volume Market Share, Average USDC Held in Coinbase Products, Service clients, and 150 government agencies. continued growth of Coinbase One Basic, our first-ever Member Week, and the Coinbase statements of historical fact are forward-looking statements. These statements include, but are not limited to, statements regarding our future operating results and extended our multi-year track record of profitability. investment and our crypto assets held as collateral were $2.0 billion and $823 million, respectively. When 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 onboarding drop-off and support in-app functionality with USDC on Base. Q4 total revenue was $1.8 billion, down 5% Q/Q. Transaction revenue was $983 million, down 6% Q/ Other Transaction Revenue. Q4 Other transaction revenue was $64 million, down 6% Q/Q. The primary stablecoins in part due to U.S. legislation has driven all-time highs in Average USDC Held in Coinbase Technology and development expenses were $497 million in Q4, up 16% Q/Q. The Q/Q increase was primarily and for our growing derivatives business. We now have 12 products generating over $100 million in annualized One Card rollout. financial position, including for the first quarter ending March 31, 2026; anticipated future expenses and investments; the expected benefits and impacts of our including these crypto assets, total available resources totaled $14.1 billion. The following is a reconciliation of cash, cash equivalents, and restricted cash and cash equivalents •Reinforced institutional trust at scale, continuing to serve as custodian for over 80% of the U.S. BTC investors evaluate our operating performance because it: enables investors to compare this measure and component adjustments to similar information provided by Q. Subscription and services revenue was $727 million, down 3% Q/Q. Total operating expenses were •other (income) expense, net, which represents net gains or losses on investments and other financial instruments, and other non-operating income and As regulatory clarity emerges, we believe crypto will update all financial services, and Coinbase is well driver of the decline was a reduction in instant transfer activity amidst softer market conditions. This was Products, and a commensurate increase in the amount of rewards paid to customers. To accelerate our driven by higher headcount related expenses, including the full-quarter impact from the Deribit and Echo revenue. acquisition of Deribit; expectations relating to certain of our key financial and operating metrics; our business strategy and plans; expectations relating to legal and
- Expanded merchant distribution with USDC on Base integrated into Shopify Payments, (in thousands): and ETH ETF assets and saw a peak of $31.0 billion of inflows from ETFs. ◦We made uncapped USDC rewards a Coinbase One benefit. peer companies and our past financial performance; provides additional company-specific adjustments for certain items that may be included in income from $1.5 billion, up 9% Q/Q. Technology & development, general & administrative, and sales & marketing expense activity. positioned to capitalize on that transition. Our customers trust us to store more crypto than any other company; partially offset by increased revenue from Base which continues to see growth in the number of transactions as Everything Exchange vision, we have pursued strategic acquisitions in areas like derivatives, where we are acquisitions, as well as higher deal-related amortization. regulatory proceedings; expectations relating to our industry, the regulatory environment, market conditions, trends and growth; expectations relating to customer December 31,20252024Cash and cash equivalents..............................................................................................$11,285,452$9,308,266Restricted cash and cash equivalents ...........................................................................334,318347,169Customer custodial cash and cash equivalents ...........................................................5,273,6506,028,020Total cash, cash equivalents, and restricted cash and cash equivalents ..............$16,893,420$15,683,455 bringing stablecoin checkout and merchant acceptance to mainstream commerce. Expanding depth and breadth - we have 12 products generating over $100 million in revenue on an operations but that we do not consider to be normal, recurring, operating expenses (or income) necessary to operate our business given our operations, revenue expenses collectively increased 14% Q/Q to $1.3 billion. Full time employees increased 3% Q/Q to in 2025, more than 12% of all crypto in the world resided on Coinbase. We’re building and connecting more we make progress on reducing transaction costs and scaling the network. rapidly gaining volume and revenue share. We have also invested in personnel to better organically serve our 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 Coinbase Total Trading Volume comprises Spot Trading Volume and Derivatives Trading Volume. Spot Trading Volume is the total U.S. dollar equivalent value of spot matched trades transacted between a buyer and seller through our platform, plus half of the value of trades that we routed off our platform for fulfillment, during the period of measurement. Derivatives Trading Volume is the total U.S. dollar equivalent value of the notional amount of derivatives trades transacted between a buyer and seller through our platform during the period of measurement. Both measurements represent the product of the quantity of assets transacted and the trade price of the underlying at the time the transaction was executed.Coinbase Crypto Trading Volume Market Share is defined as Coinbase Total Crypto Trading Volume divided by Total Crypto Market Trading Volume. Total Crypto Trading Volume Market Share is defined as the total USD value of all crypto matched spot and derivative trading volumes across exchanges defined in our proprietary competitor set during the period of measurement, based on data obtained from CryptoCompare, CoinMetrics, and Dune. Corporate USDC balances and USDC held on behalf of customers in eligible Coinbase products. Average of each day’s market capitalization (end of day) of USDC over the period of measurement, based on data obtained from CryptoCompare, CoinMarketCap, and CoinGecko. Paid Coinbase One Subscriber is defined as a user with an active subscription to Coinbase One at the end of the period of measurement, and is not part of a time limited free trial. Measured based on when a given product generated $100 million in quarterly annualized net revenue for the most recent qualifying quarter.
- Expanded regulated market access internationally, securing approvals that enable more localized, ◦Coinbase One Card rolled out, and ended Q4 with nearly $800 million in cumulative spend, Q1’26 Outlook General and administrative expenses were $453 million, up 8% Q/Q. The Q/Q increase was largely driven by annualized basis generating activities, business strategy, industry, and regulatory environment; and provides investors with visibility to a measure management uses to evaluate our Bringing the world onchain 4,951. Net loss was $667 million, Adjusted Net Income was $178 million, and Adjusted EBITDA was products to facilitate customers doing more with their assets. Coinbase Total Trading Volume grew 156% to customers around the world with a wider breadth of assets and growing set of utility experiences. “potential,” “continue,” “anticipate,” “intend,” “expect,” “could,” “would,” “project,” “plan,” “target,” and similar expressions are intended to identify forward-looking compliant services in key regions: alongside strong “top-of-wallet” behavior with ~$3 thousand in monthly spend per cardholder. USDC rewards are among the key perks of Coinbase One - where subscribers earn top of market rates. Subscription and Services Revenue deal-related amortization, legal activity, and policy related spend. 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 $566 million. We ended 2025 with $11.3 billion in cash and cash equivalents (payment stablecoins, $5.2 trillion in 2025, and Coinbase Crypto Trading Volume Market Share doubled. We also saw new records statements. Forward-looking statements are based on management’s expectations, assumptions, and projections based on information available at the time the Measured based on when a given product generated $100 million in quarterly annualized net revenue for the most recent qualifying quarter. Boosted rewards plus bundling access to our new Coinbase One Card (with industry leading rewards up to 4% Coinbase Q1 2026 OutlookMETRICOUTLOOKSubscription and Services Revenue$550-$630 millionTransaction ExpensesLow-to-Mid teens as a percentage of net revenueDependent on revenue mixTechnology & Development +General & Administrative Expenses$925-$975 millionSales and Marketing Expenses$215-$315 millionStock-based Compensation~$250 million •Scaling Base as the app platform: faster rails + better consumer UX 2025 full year operating expenses were $5.7 billion, up 35% Y/Y. Technology & development, general & GAAP equivalents, respectively, including that Adjusted Net Income and Adjusted Net Income per Share each exclude the tax-effected impact of our crypto investment ◦Became the largest Financial Conduct Authority-registered VASP in the United Kingdom, •Launched Prediction Markets including USDC, are now classified as cash equivalents) and repurchased $1.7 billion of our Class A for stablecoin revenue, driven by all-time highs in Average USDC Held in Coinbase Products and Average statements were made. These forward-looking statements are subject to a number of risks, uncertainties, and assumptions, including, among others: our ability to Transcending the Cycle: 2025 Subscription and services revenue was 5.5x higher than 2021 cycle peak Sales & marketing expenses were $315 million, up 21% Q/Q. The Q/Q increase was driven primarily by a •We believe it is useful to exclude certain non-cash expenses, such as depreciation and amortization and stock-based compensation, from Adjusted back in BTC) drove Coinbase One membership adoption led primarily by our $4.99/month basic tier. We also administrative, and sales & marketing expenses collectively were $4.3 billion, up 27% Y/Y. Growth was largely gains/losses and of our marketable and strategic investments gains or losses. enabling us to scale retail, institutional, and developer offerings in our largest international common stock in Q4 and through February 10, 2026. ◦Made Base materially faster and cheaper through infrastructure upgrades, including ~200ms USDC Market Capitalization. We hit an all-time high in the number of Paid Coinbase One Subscribers by successfully execute our business and growth strategy and generate future profitability; market acceptance of our products and services; our ability to further combination of higher marketing spend - both seasonal spending related to our NBA partnership and higher EBITDA because the amounts of such expenses can vary significantly from period to period and may not directly correlate to the underlying performance drove customer acquisition with our first ever Coinbase One “Member Week” which featured exclusive ◦Rolled out prediction markets in the U.S., with initial market flow powered by Kalshi. driven by USDC rewards (in connection with the growth of Average USDC Held in Coinbase Products) and market. block times and very low median fees, helping unlock consumer-grade experiences (sub- introducing new tiers and increasing the value proposition with products like Coinbase One Card. Our ability to 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 variable marketing efforts, notably in international markets - higher USDC rewards given all-time high Average of our business operations. Additional Information promotions and offers only available to subscribers, and closed the year with a: •Outlook. In Q1’26, through February 10 2026, we have generated approximately $420 million of other marketing programs, costs related to our recent acquisitions, investments in driving and adhering to __________________
- Launched Equities second, sub-cent interactions) across social, payments, trading, and lending apps. The following is a supplemental schedule of non-cash investing and financing activities (in scale and diversify is driving results; we now have 12 products that generate more than $100 million in 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 USDC Held in Coinbase Products in Q4, and deal-related amortization.
- Completed our pan-European expansion under MiCA by securing our license in Luxembourg •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 transaction revenue. As always, we continue to urge caution in extrapolating these results. (1)See Note 17. Other Consolidated Statements of Operations Details to the Consolidated Financial Statements in our Annual regulatory clarity and scaling foundations including the Everything Exchange vision. Full-time employees For more information, including reconciliations of these non-GAAP financial measures to their nearest GAAP equivalents, please see the reconciliation of GAAP to New all-time high of nearly 1 million Paid Coinbase One Subscribers. thousands): on an annualized basis, half of which generate more than $250 million, and two that generate more than $1 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; Report on Form 10-K for the year ended on December 31, 2025 filed with the SEC on February 12, 2026 for additional details. and migrating our EEA business onto the MiCA framework, enabling us to offer regulated ongoing business operations. For example, we exclude: (i) other (income) expense, net, as the income and expenses recognized in this line item are not ◦Rolled out stock and ETF trading inside the Coinbase app, alongside crypto, bringing ◦Advanced decentralization by reaching Stage 1 (permissionless fault proofs + security increased 31% Y/Y to 4,951, with the largest number of employees being added in our customer support and Year Ended December 31,20252024Non-cash consideration paid for business combinations............................................$3,677,634$ - Crypto assets borrowed ...................................................................................................4,293,287844,717Crypto assets borrowed repaid .......................................................................................4,239,621579,210Customer crypto assets received as collateral .............................................................3,117,6163,030,311Customer crypto asset collateral returned ....................................................................2,755,4312,759,660Crypto asset loan receivables originated ......................................................................2,365,3701,559,716Crypto asset loan receivables repaid .............................................................................2,430,5691,489,839Additions of crypto asset investments............................................................................166,291 - Cumulative-effect adjustment upon adoption of ASU 2023-08 .................................. - 561,489 Stock-based compensation was $230 million, up 4% Q/Q. 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 billion. METRICQ1’26 OUTLOOKCOMMENTARYSubscription and Services Revenue$550-$630 millionDriven by lower effective interest rates and crypto asset prices vs. Q4 averageTransaction ExpensesLow-to-Mid Teens as a percentage of net revenueDependent on revenue mixTechnology & Development +General & Administrative Expenses$925-$975 millionFlat as compared to Q4’25Sales and Marketing Expenses$215-$315 millionFlat to down as compared to Q4’25Total Stock-based CompensationIncluded in expense ranges above~$250 millionDriven by recent acquisitions and headcount growth stock price fluctuations; market conditions across the onchain economy, including crypto asset price volatility; and general market, political, and economic conditions, crypto trading and custody services across the European Economic Area. part of our core operating activities and are considered non-operating activities under GAAP, (ii) gains and losses on crypto assets held for investment traditional and digital assets into a unified portfolio experience. Early access users had council), strengthening Base as an open platform for global developers and users. Reconciliation of Net Income (Loss) to Adjusted Net Income and Net Income (Loss) per Share to Adjusted Net product teams. Total Crypto Market Capitalization is defined as total dollar value market capitalization of all publicly tradable crypto assets and payment stablecoins on the last day of the quarter, based on data obtained from CryptoCompare, CoinMarketCap, and CoinGecko. Total Crypto Market Trading Volume is defined as the total USD value of all crypto matched spot and derivative trading volumes across exchanges in our proprietary competitor set during the period of measurement, based on data obtained from CryptoCompare, CoinMetrics, and Dune. Coinbase Total Trading Volume comprises Spot Trading Volume and Derivatives Trading Volume. Spot Trading Volume is the total U.S. dollar equivalent value of spot matched trades transacted between a buyer and seller through our platform, plus half of the value of trades that we routed off our platform for fulfillment, during the period of measurement. Derivatives Trading Volume is the total U.S. dollar equivalent value of the notional amount of derivatives trades transacted between a buyer and seller through our platform during the period of measurement. Both measurements represent the product of the quantity of assets transacted and the trade price of the underlying at the time the transaction was executed. Coinbase Crypto Trading Volume Market Share is defined as Coinbase Total Crypto Trading Volume divided by Total Crypto Market Trading Volume. Total Crypto Trading Volume Market Share is defined as the total USD value of all crypto matched spot and derivative trading volumes across exchanges defined in our proprietary competitor set during the period of measurement, based on data obtained from CryptoCompare, CoinMetrics, and Dune. any single financial measure to evaluate our business. Paid Coinbase One Subscriber is defined as a user with an active subscription to Coinbase One at the end of the period of measurement, and is not part of a time limited free trial. As of Feb 11, 2026 Basic tier requires annual plan Spot crypto trades only. Coinbase Advanced and DEX fees excluded. A spread applies. Monthly cap varies by tier. including interest rate fluctuations, inflation, changes in tariffs and trade restrictions, instability in the global banking system, economic downturns, and other global Income per Share Our Q4 tax rate was 25% and our full year tax rate was 17%. because such investments are considered primarily long-term holdings, and (iii) losses, net of recoveries, directly related to the data theft incident access to 3,000 stocks and are expected to have nearly 10,000 available by late February. Looking forward to 2026, we continue to be optimistic about the long-term trajectory of the crypto industry. We Q4 Stablecoin revenue was $364 million, up 3% Q/Q. This was largely driven by higher Average USDC Held in Growing Assets on Platform ◦Accelerated the builder ecosystem through acquisitions that improve distribution and tooling events, including regional wars and conflicts and government shutdowns. It is not possible for our management to predict all risks, nor can we assess the impact of all (in thousands, except per share amounts)Q4’24Q1’25Q2’25Q3’25Q4’25FY’25FY’24Net income (loss) ..............................$1,291,176$65,608$1,428,900$432,552$(666,733)$1,260,327$2,579,066Adjusted to exclude the following:(Gains) losses on crypto assets held for investment, net ..............(476,153)596,651(362,053)(423,903)718,162528,857(687,055)(Gains) losses on investments, net ..................................................(3,587)(3,327)(1,472,121)400,250394,678(680,520)11,553Tax effect of non-GAAP net income adjustments ....................119,852(134,821)438,48211,845(268,099)47,407169,789Adjusted Net Income ............$931,288$524,111$33,208$420,744$178,008$1,156,071$2,073,353Weighted-average shares outstanding used in per share calculations below:Basic ..................................................251,506253,878255,188262,831268,267260,088247,374Diluted .................................................276,752271,251278,913291,958268,267287,209273,377Net income (loss) per share(1):Basic....................................................$5.13$0.26$5.60$1.65$(2.49)$4.85$10.42Diluted .................................................$4.68$0.24$5.14$1.50$(2.49)$4.45$9.48Adjusted Net Income per Share:Basic....................................................$3.70$2.06$0.13$1.60$0.66$4.44$8.38Diluted .................................................$3.37$1.93$0.12$1.44$0.66$4.03$7.58 A majority of Y/Y increase in expenses were driven by Marketing and Rewards, and M&A. announced on the Current Report on Form 8-K we filed with the SEC on May 15, 2025 (the “Data Theft Incident”), including voluntary customer Sum of Technology & Development, General & Administrative, and Sales & Marketing Expenses have three top priorities for this year. First, continuing to grow the Everything Exchange: one platform for all Coinbase Products which increased 18% Q/Q to $17.8 billion, a new all-time high. To a lesser extent, average Q4 net loss was $667 million driven by a $718 million loss on our crypto asset investment portfolio which was
- Scaling DeFi Lending (e.g., onchain advertising/attribution via Spindl; privacy expertise via the Iron Fish team), factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forwardreimbursements, direct legal costs, and reward payments, if any, in connection with the threat actor’s arrest and conviction. We do not plan on engaging in •9th straight quarter of native unit growth across our platform. tradable assets including crypto, derivatives, equities, prediction markets, and more. Second, scaling off-platform USDC balances increased by 11% to $58.4 billion. Partially offsetting this growth was lower largely unrealized, and $395 million loss on our strategic investments (which include our investment in CRCL). helping developers find users and ship more usable apps. looking statements we may make. In light of these risks, uncertainties, and assumptions, our actual results could differ materially and adversely from those anticipated Total Revenue ($M)FULL YEARTOTAL REVENUEQ4’24Q1’25Q2’25Q3’25Q4’2520242025Transaction RevenueConsumer, net1,347.11,095.5649.9843.5733.93,430.33,322.8Institutional, net141.398.960.8135.0185.0345.6479.7Other transaction revenue, net67.667.853.567.763.8210.2252.9Total Transaction Revenue1,556.01,262.2764.31,046.3982.73,986.14,055.4Subscription and Services RevenueStablecoin revenue225.9297.5332.5354.7364.1910.51,348.8Blockchain rewards214.9196.6144.5184.6151.6705.8677.4Interest and finance fee income65.763.159.364.859.9265.8247.0Other subscription and services revenue134.6140.9119.5142.7151.7425.1554.8Total Subscription and Services Revenue641.1698.1655.8746.7727.42,307.12,828.0Net Revenue2,197.01,960.31,420.11,793.01,710.06,293.26,883.4Corporate interest and other income74.674.077.175.771.1270.8297.9Total Revenue2,271.62,034.31,497.21,868.71,781.16,564.07,181.3 regular trading of crypto assets, and, as an operating company, our investing activities in crypto are not part of our revenue generating activities, which are stablecoins and payments infrastructure with deeper product integrations and tools for developers and effective interest rates on reserves, which declined following rate cuts in October and December. ◦Scaled BTC-backed borrowing in the Coinbase app (powered by onchain rails), enabling Trading Volume Adjusted net income was $178 million and Adjusted EBITDA was $566 million.
- Assets on Platform up 3x in 3 years. or implied in the forward-looking statements. Further information on risks that could cause actual results to differ materially from forecasted results are, or will be primarily based on transactions on our platform and the sales of subscriptions and services. businesses. Third, bringing the world onchain through DeFi integrations, scaling the Base App, and driving customers to access liquidity without selling - helping keep assets on platform. ◦Brought it together in Base App, bundling wallet, onchain trading, payments, social, included, in our filings we make with the Securities and Exchange Commission (SEC) from time to time, including our Annual Report on Form 10-K for the year ended All-time high Average USDC Held in Coinbase Products and Average USDC Market Capitalization in Transaction Revenue 2025 was a strong year for the crypto markets overall: Total Crypto Market Capitalization reached $4 trillion for Share Count and Repurchase Program •We believe Adjusted EBITDA is useful to measure a company’s operating performance without regard to items such as stock-based compensation transactions on Base Chain. •Customers now store more crypto at Coinbase than any other company. In 2025, Coinbase stored messaging, mini apps, Base Account (identity), and Base Pay, aimed at reducing December 31, 2025 filed with the SEC on February 12, 2026. Except as required by law, we assume no obligation to update these forward-looking statements, or to Q4. ◦By Q4, BTC Borrow originations exceeded $1.5+ billion, a tangible proof point that customers the first time, and Total Crypto Market Trading Volume grew 26% Y/Y. expense, depreciation and amortization expense, interest expense, other (income) expense, net, and provision for (benefit from) income taxes that can ~12% of all crypto globally. fragmentation and making onchain feel native for mainstream users. Note: Figures presented may not sum precisely due to rounding. Through February 10, 2026 we have generated approximately $420 million of transaction revenue, which is Our fully diluted weighted average share count in Q4 declined 8% Q/Q to 268 million. In Q4, we repurchased update the reasons if actual results differ materially from those anticipated in the forward-looking statements. Product Strategy Crypto is cyclical, and experience tells us it’s never as good, or as bad as it seems. While asset prices can be are using onchain financing to unlock liquidity while maintaining crypto exposure. vary substantially from company to company depending upon their financing, capital structures, and the method by which assets were acquired. approximately halfway through Q1. As always, we continue to urge caution in extrapolating these results. 2025 Coinbase Total Trading Volume grew 156% Y/Y, and Coinbase Crypto Trading Volume Market approximately 3.3 million shares of our Class A common stock for $850 million, measured on a trade date volatile, under the surface an undercurrent of technological change and crypto product adoption continues. Driving Product Adoption •Launched general availability for Coinbase Business (starting with the U.S. and Singapore) Corporate USDC balances and USDC held on behalf of customers in eligible Coinbase products. Average of each day’s market capitalization (end of day) of USDC over the period of measurement, based on data obtained from CryptoCompare, CoinMarketCap, and CoinGecko. Adjusted Net Income and Adjusted Net Income per Share Our strategy is to build an asset accumulation flywheel that starts with building the most trusted and easy to •Growing Prime Financing for institutional clients Share doubled. basis. Subsequently, we have repurchased an additional 4.9 million shares for $895 million as of February 10, We’re taking advantage of this opportunity. We’ve repurchased a total of 8.2 million shares since November
Subscription and Services Revenue
use products. In Q4 and 2025, we demonstrated increasing product velocity: ◦Giving SMBs a compliant platform to manage crypto, move money, and automate workflows. 2026. In aggregate these repurchases of more than $1.7 billion have more than offset dilution related to our 2025. In January 2026 our board expanded our share and long-term debt repurchase authorization by an 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 •Expanded institutional financing and capital efficiency for corporates, miners, market makers, The following is a supplemental schedule of cash paid for income taxes (in thousands): We expect Q1 subscription and services revenue to be within $550-$630 million. Our range reflects lower 2025 employee stock-based compensation issuances, capturing a notional discount of $815 million relative to additional $2.0 billion. We are mindful of reducing our overall dilution opportunistically. We are deliberately well performance measures, are useful information to help investors evaluate our operating performance. We believe it is useful to exclude tax-effected gains and losses 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. Building the Everything Exchange, a one-stop-shop where users can trade every asset class. hedge funds, and asset managers, supporting a more durable, diversified financing business. •Announced custom branded stablecoins and x402 Product Update. In 2025, we debuted our “asset accumulation flywheel” and made significant progress driving Average USDC Market Capitalization and interest rates, as well as lower average crypto prices and staking Year Ended December 31,20252024Cash paid during the period for income taxes, net of refunds:U.S. Federal..................................................................................................................$60,662$63,884U.S. State and local .....................................................................................................52,29350,672Foreign...........................................................................................................................51,91325,785Total cash paid during the period for income taxes, net of refunds...........................$164,868$140,341 our average issuance price for the year. Subscription and services revenue was $727 million in Q4, down a modest 3% Q/Q due to lower average capitalized with $11.3 billion in cash and cash equivalents to weather these cycles, and continue to invest in the on crypto assets held for investment from both Adjusted Net Income and Adjusted Net Income per Share because (i) such investments are considered primarily longit. We continued to build trust by helping advance regulatory clarity in the U.S., expanding our regulated reach protocol rates compared to Q4. •Expanding Tradable Assets on Platform •Improved institutional capital efficiency with cross-margining between U.S. futures (via ◦x402 is an open standard to attach stablecoin payments to web requests, extending crypto asset prices. We continued to see native unit inflows in Q4 across our product suite driving new all-time future of finance. 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 Assets on Platform is defined as the total U.S. dollar equivalent value of crypto assets and payment stablecoins held or managed on behalf of customers in digital wallets on our 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 last day of the quarter. In January 2026, our board approved an additional $2.0 billion repurchase authorization for both Class A globally, and establishing ourselves as the partner of choice for institutions and governments. Assets on Coinbase Financial Markets / our FCM) and spot on Coinbase Exchange, helping stablecoin utility toward agentic commerce and new onchain payment flows. highs in average USDC Held in Coinbase Products, average daily loan balances across our institutional 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 Expenses ◦Expanded access to long-tail assets through DEX integration allowing customers to access common stock and long-term debt. As of February 10, 2026, a total of $2.3 billion remained available under our Platform grew on a native unit basis as we drove USDC adoption, grew our Prime and DeFi powered lending sophisticated clients deploy capital more efficiently and deepen cross-product engagement. financing products, and Assets on Platform. This marks the 9th straight quarter of native unit growth across our exclude tax-effected gains and losses on our marketable and strategic investments from Adjusted Net Income and Adjusted Net Income per Share because such Stock-based Compensation Expense over 20 million assets, broadening the funnel for early demand and price discovery. Monetize and Reinvest repurchase program. options, and scaled staking utility. We drove product adoption by expanding tradable assets, broadening our Blockchain rewards revenue was $152 million in Q4, down 18% Q/Q. This decline was primarily driven by lower We expect technology & development and general & administrative expenses to be between $925-$975 product suite, which has been a key driver of growth in Assets on Platform, in addition to price effects. Growing investments are not part of our core operating activities and are considered non-operating activities under GAAP.
- Scaling staking utility Coinbase One subscription benefits, advancing stablecoin payments and infrastructure, and scaling the Base average crypto asset prices, notably ETH and SOL which were down 13% and 16% Q/Q, respectively. In million, roughly flat Q/Q. Higher compensation-related expenses (including seasonally higher payroll taxes) are ◦Expanded DEX trading to Solana, integrating Jupiter to enable trading of newly created We’re using this momentum to invest in 3 key priorities in 2026: Assets on Platform and our market share is a key focus for us as we work to better serve our customers by Three Months Ended December 31,Year Ended December 31,2025202420252024Technology and development .................................................................$145,650$135,863$498,235$564,726Sales and marketing ................................................................................14,33317,42657,69269,460General and administrative .....................................................................70,49968,695283,513278,652Total stock-based compensation expense............................................$230,482$221,984$839,440$912,838 Capital and Liquidity ecosystem. The depth and breadth of our product portfolio continues to expand. Limitations of Non-GAAP Financial Measures addition, the protocol rewards rate on Solana declined 17% Q/Q driven by increasing network maturity and tokens directly in-app, extending our “trade anything” surface beyond Base. ◦Simplified staking with One-Click Staking to reduce friction and make it easier for customers connecting better products and experiences to utilize those assets. expected to be offset by professional fees savings. We expect headcount to grow at a slightly higher rate than Operating Expenses ($M)FULL YEAROPERATING EXPENSESQ4’24Q1’25Q2’25Q3’25Q4’2520242025Transaction expense317.0303.0245.3253.3218.6897.71,020.2% of net revenue14%15%17%14%13%14%15%Technology and development368.7355.4387.3430.6497.31,468.31,670.6Sales and marketing225.8247.3236.2260.3314.8654.41,058.6General and administrative362.5394.3353.7418.4453.11,300.31,619.6Losses (gains) on crypto assets held for operations, net(16.2)34.4(8.7)(35.7)30.8(71.7)20.7Other operating expenses (income), net(20.3)(5.9)308.061.3(7.3)7.9356.1Total operating expenses1,237.61,328.51,521.91,388.21,507.44,256.95,745.9Full-time employees (end of quarter)3,7723,9594,2794,7954,9513,7724,951 •Grow the Everything Exchange: Expand Coinbase into the single trusted place to trade the assets At the end of Q4, we had $11.3 billion in cash and cash equivalents, a decrease of $0.7 million Q/Q. The Q/Q participation. Partially offsetting this headwind was an increase in SOL native units staked on our platform. to put assets to work, driving higher staking participation and stickier balances. Q4. Webcast Information 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
- Doubling Down on Derivatives customers want; crypto, derivatives, equities, and prediction markets, deepening engagement by __________________ decrease was primarily driven by the aforementioned share purchases. supplemental informational purposes only, have limitations as analytical tools, and should not be considered in isolation or as a substitute for financial information Q4 Interest and finance fee revenue was $60 million, down 8% Q/Q. We continued to see strong performance (1)Net income (loss) per share is calculated using net income (loss) attributable to common shareholders. See Note 19. Net
- Supported expansion of staking access through traditional wrappers, including helping bring letting customers manage more of their portfolio where their assets already reside. We will host a conference call to discuss the results for the fourth quarter and full year 2025 on February 12, Sales and marketing expenses are expected to be in the range of $215-$315 million. Where we fall within the income Per Share to the Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended on ◦Coinbase was first-to-market with 24/7 U.S. perpetual-style futures, contributing to a 4x Cash and Cash EquivalentsTOTAL: $11,285MMONEY MARKET FUNDS$6,088MCASH HELD AT BANKS $1,907M$3,179MPAYMENT STABLECOINS$111MCASH HELD AT VENUESNote: Figures presented may not sum precisely due to rounding. presented in accordance with GAAP. In addition, other companies, including companies in our industry, may calculate non-GAAP financial measures differently or may across our institutional financing products where we had all-time highs in both daily average loan balances of staking ETFs to the U.S. market in partnership with ETF issuers. 2026 at 2:30 pm PT. The live webcast of the call will be available at youtube.com/@coinbase/streams. A replay December 31, 2025 filed with the SEC on February 12, 2026 for additional details. range will largely be determined by (1) whether we continue to see attractive performance marketing Note: Figures presented may not sum precisely due to rounding. increase in U.S. derivatives market share year-over-year. •Scale stablecoins and payments: Accelerate USDC utility and our payments stack (APIs, wallets, Transaction Revenue 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 $1.3 billion, and customers which grew double digits Q/Q, partially offset by lower interest rates. At the end of of the call, as well as a transcript, will be available on our Investor Relations website at investor.coinbase.com. opportunities throughout the remainder of Q1 and (2) Average USDC Held in Coinbase Products, which drive Expanding payments and stablecoins and merchant rails) to make moving value faster, cheaper, and always-on, and to capture the next comparison. Q4, we had $1.4 billion in collateralized loans to customers which require at least 100% in collateral (including We believe Coinbase continues to be one of the best places to use stablecoins. In Q4, Average USDC Market ◦Saw all-time highs in quarterly derivatives trading volume in Q4. Our transaction revenue totaled $4.1 billion for 2025, growing 2% Y/Y. Transaction revenue for Q4 was $983 USDC rewards. wave of real-world adoption beyond trading. recent facilities extended to BTC miners), and are subject to rigorous risk monitoring. Interest income on Capitalization increased by approximately $8.4 billion Q/Q to $76.2 billion, and Coinbase was the largest driver •Driving USDC adoption million, down 6% Q/Q. Adjusted EBITDA
- Coinbase closed its acquisition of Deribit, becoming the global leader in crypto derivatives by custodial balances declined Q/Q largely due to lower effective interest rates, and modestly lower fiat balances. of that increase. We continue to embed USDC across our Consumer and Institutional product suites.
- Bring the world onchain: Make onchain experiences simpler and more accessible by expanding open interest and options volume, and achieving new all-time highs in both volume and ◦Scaled USDC distribution and utility across Coinbase products like derivatives, increasing its Consumer Transaction Revenue. Consumer Spot Trading Volume which drives the majority of our consumer There are a number of limitations related to Adjusted EBITDA rather than net (loss) income, which is the nearest GAAP equivalent of Adjusted EBITDA. Some of these DeFi integrations in the Coinbase app, scaling Base App with a sharper focus on trading, and Other Q4 subscription and services revenue was $152 million, up 6% Q/Q driven by the growth in Coinbase revenue since close. role as trading collateral across Coinbase products for settlement asset and “onchain money” We do the hard work to be the most trusted name in crypto, so customers choose to store more assets with us. transaction revenue was $56 billion in Q4, down 6%. Consumer transaction revenue was $734 million in Q4, limitations are that Adjusted EBITDA excludes: continuing to grow activity on Base, so more usage is powered by Coinbase infrastructure. One as discussed above, offset by Custodial fee revenue which declined double digits Q/Q driven by lower across payments and app ecosystems. As assets concentrate on our platform, customers discover and adopt more products where their assets down 13% Q/Q driven by a volume mix shift from Simple to Advanced, and also an increasing amount of
- Rolled out a simplified futures and perpetual futures trading experience in the Coinbase app, average crypto asset prices. •provision for (benefit from) income taxes; We’re entering 2026 with strong product momentum and a clear strategy: keep investing through the cycle, already reside, driving revenue growth which we then reinvest back into the platform to build more products, trading coming from Paid Coinbase One Subscribers. bringing advanced tools to a broader audience through a more accessible interface. •Expanding commerce + developer rails
- interest expense, or the cash requirements necessary to service interest or principal payments on our debt, which reduces cash available to us; ship faster, and compound the flywheel by earning trust, growing assets on platform, and expanding adoption. improve the customer experience, expand distribution, and strengthen trust. Here’s how we grew each portion Q4 total operating expenses were $1.5 billion, up 9% or $119 million Q/Q, and inline with our outlook and Institutional Transaction Revenue. Institutional Spot Trading Volume was $215 billion in Q4, down 13% Q/Q.
- depreciation and amortization expense and, although these are non-cash expenses, the assets being depreciated and amortized may have to be replaced of the flywheel in 2025: expectations. Technology & development, general & administrative, and sales & marketing expenses ◦Advanced a full-stack stablecoin payments platform by rolling out Payment APIs and a B2B Institutional transaction revenue was $185 million, up 37% Q/Q. Derivatives, notably Deribit (which achieved 18 19 in the future; collectively increased by $156 million or 14% Q/Q. payments UI/API, enabling developers and businesses to embed stablecoin checkout, send
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