Coinbase outlines Everything Exchange expansion and targets $710M–$790M Q4 subscription revenue as derivatives and stablecoins accelerate

Earnings Call Insights: Coinbase Global, Inc. (COIN) Q3 2025

MANAGEMENT VIEW

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CEO Brian Armstrong reported "another great quarter for Coinbase," highlighting strong financial performance and ongoing execution on the company's "Everything Exchange" strategy. Armstrong emphasized that "our strong financial performance in Q3 was driven by continued product execution. Total revenue was $1.9 billion, adjusted EBITDA was $801 million." He described the expansion of tradable assets from "about 300 to over 40,000 assets in the U.S." through DEX integrations and noted the first launch of "CFTC-regulated 24/7 perpetual style futures in the U.S." Armstrong also referenced the completed Deribit acquisition, which, combined with Coinbase, generated "over $840 billion in total derivatives volume in Q3."

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Armstrong pointed to stablecoin adoption as a key growth driver, with Coinbase customers holding an average of "$15 billion of USDC on platform" in Q3 and called out a recently announced partnership with Citi. He stated, "Through the end of the year, we're heads down building the Everything Exchange and scaling stablecoin payments with USDC."

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CFO Alesia Haas stated, "We had total revenue of $1.9 billion, net income of $433 million, adjusted EBITDA was $801 million, and adjusted net income was $421 million." She cited a "29%" increase in U.S. spot market trading volume and a "37%" growth in Coinbase's consumer spot trading volume to "$59 billion." Haas also highlighted that "institutional transaction revenue was $135 million, up 122%. The primary growth driver was derivatives. We closed Deribit on August 14, which contributed $52 million to revenue."

OUTLOOK

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Haas stated, "We expect October transaction revenue to be approximately $385 million. We expect subscription and services revenue to be in the range of $710 million to $790 million, driven by higher average crypto prices and continued growth of the Coinbase One subscriber base."

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On expenses, Haas projected "our expense range is higher quarter-over-quarter for tech and dev and G&A in the range of $925 million to $975 million, up approximately $100 million at the midpoint," with about half of this increase due to the Deribit and Echo acquisitions. She indicated headcount growth would slow in Q4.

FINANCIAL RESULTS

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Coinbase reported "total revenue of $1.9 billion, net income of $433 million, adjusted EBITDA was $801 million, and adjusted net income was $421 million."

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U.S. and global spot market trading volume increased "29% and 38%, respectively." Consumer spot trading volume grew to "$59 billion," with consumer transaction revenue at "$844 million."

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Institutional transaction revenue reached "$135 million, up 122%," with Deribit contributing "$52 million to revenue."

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Subscription and services revenue grew to "$747 million" and assets on platform ended at "$516 billion."

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Total operating expenses decreased "9% to $1.4 billion," while headcount increased "12%" to 4,795 employees. Deribit contributed "$30 million to total operating expenses."

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Below-the-line impacts included a "$424 million gain from the ongoing fair value remeasurement of our crypto investment portfolio" and a "$381 million expense in other expenses, largely driven by unrealized losses related to our investment in Circle."

Q&A

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Craig Siegenthaler, BofA Securities: Asked about Echo's role in capital formation. Armstrong said Echo "was a really innovative...company that we decided to go acquire to get a foothold here" and described synergy in creating a "2-sided marketplace" for capital formation.

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Kenneth Worthington, JPMorgan: Inquired about M&A activity and regulatory clarity. President Emilie Choi said, "the pace has picked up. The political environment definitely helps with that."

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Peter Christiansen, Citi: Questioned operational infrastructure and redundancy. Armstrong explained, "we already do use multi-clouds in a variety of ways, but we haven't made...every service in the company redundant to a certain cloud outage." Choi added, "65% of our customer support interactions are fully automated" and discussed investments in automation.

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Benjamin Budish, Barclays: Asked about the white glove service for advanced retail traders. Haas explained, "it provides some concierge-level support, the personal account manager and really makes commitments around time to resolve the issues."

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Owen Lau, Clear Street: Requested details on global payout and institutional adoption. Armstrong noted, "we've been able to close 264 institutions now that are using [Coinbase developer platform], including large companies like JPMorgan, BlackRock, Citi, PNC, fintechs like Stripe, PayPal, Revolut, Webull."

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Devin Ryan, Citizens JMP: Queried about Deribit integration. Haas responded, "we onboarded 100 employees in September. Their revenue has been growing...the goal is going to be integrated for the next few quarters."

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Patrick Moley, Piper Sandler: Sought timeline for Everything Exchange. Armstrong said, "December 17 is going to be another milestone for us."

SENTIMENT ANALYSIS

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Analysts pressed for clarity on competition, product innovation, derivatives mix, and monetization, with a slightly positive to neutral tone, focusing on execution and market differentiation.

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Management tone in prepared remarks was confident, with Armstrong stating "our strong financial performance in Q3 was driven by continued product execution." In the Q&A, management maintained confidence but occasionally hedged on specifics, such as Haas stating, "we are constantly experimenting with our pricing...and we will adjust fees as needed by the market."

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Compared to the previous quarter, both analysts and management displayed more optimism, citing regulatory clarity and product traction, while still acknowledging competitive and operational challenges.

QUARTER-OVER-QUARTER COMPARISON

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Guidance for subscription and services revenue in Q4 increased from Q3's outlook, with a range of "$710 million to $790 million" now cited.

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Strategic focus shifted from primarily building out the Everything Exchange and integrating DEXs in Q2 to widespread asset expansion (now over 40,000 assets), derivatives scale-up (including Deribit), and stablecoin adoption in Q3.

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Analysts' questions continued to focus on derivatives, payments, and competitive positioning, but showed increasing interest in M&A, operational scaling, and product monetization strategies.

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Management displayed greater confidence in regulatory clarity and acquisitions, while also highlighting a planned slowdown in headcount growth for Q4 and early 2026.

RISKS AND CONCERNS

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Management flagged ongoing competition and the need to "make sure we're executing well" as more players enter the space.

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Operational risk from cloud outages was discussed, with Armstrong noting, "we haven't made...every service in the company redundant to a certain cloud outage."

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Expense increases tied to recent acquisitions and headcount growth were noted, with Haas stating, "our expense range is higher quarter-over-quarter...approximately half of this increase is due to the recent acquisitions of Deribit and Echo."

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Analyst concerns included competitive pressures, derivatives margin dynamics, and the pace of product integration, but management emphasized ongoing investments in automation, customer experience, and infrastructure.

FINAL TAKEAWAY

Coinbase management underscored a strong Q3 marked by accelerated product innovation, substantial expansion in asset coverage, and robust growth in both spot and derivatives trading. The company highlighted the successful integration of Deribit, expansion of its Everything Exchange, and leadership in stablecoin adoption. Looking ahead, Coinbase signaled continued investment in product development, operational scaling, and new asset classes, while managing costs tied to recent M&A and headcount growth. Management maintains confidence in capturing further market share as regulatory clarity improves, with a focus on driving subscription and services revenue and expanding partnerships across financial institutions and enterprises.

Read the full Earnings Call Transcript [https://seekingalpha.com/symbol/coin/earnings/transcripts]

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