Coinbase (coin) posted a stronger-than-expected third quarter, driven by an influx in trading activity, a rebound in asset prices and continued growth in its subscription and services business. The US-based exchange reported total revenue of $1.9 billion, a 58% jump from $1.2 billion in the same period last year.
Shares were up 3% in post-market trading.
Transaction revenue, which remains the largest piece of Coinbase’s business, rose to $1 billion, up from $365 million a year ago. Trading volumes reached $295 billion, the company reported, boosted by renewed interest in crypto markets, especially among retail users, with trading volumes up 37% from the previous quarter.
Adjusted EBITDA came in at $801 million, up from $512 million in Q3 2024, reflecting a more profitable business mix and tight control of operating costs, which fell 9% from the previous quarter. Net income was $433 million.
Coinbase has highlighted growth in both its consumer and institutional trading arms. Institutional transaction revenue more than doubled to $135 million, fueled in part by the acquisition of crypto options platform Deribit, which contributed $52 million to revenue following the August close of the deal. Meanwhile, consumer transaction revenue hit $844 million, up 30% from Q2, driven by higher volume in tail assets and a growing base of advanced merchants.
“Q3 was a strong quarter for Coinbase,” the company wrote in a Letter to the shareholders. “We drove solid financial results, maintained a focus on shipping innovative products, and continued to build the foundation of all exchanges.”
Beyond revenue, subscription and services revenue increased 14% quarter-over-quarter to $747 million. The income related to StableCoin contributed $ 355 million already, as the average USDC balances held on Coinbase reached a full time of $ 15 billion, the company indicated. Blockchain Rewards revenue also saw a boost, rising 28% to $185 million as Ethereum and Solana prices rallied.
A standout update: Coinbase confirms its Layer 2 network, base, is now profitable. Revenue from the base increased in Q3 due to more transactions and a higher Ethereum Price, though lower per-transaction fees offset some of the gains. However, Coinbase said Base’s speed and low costs have made it the “trusted network of choice” for developers and businesses building onchain.
The exchange also closed the quarter with $11.9 billion in USD resources, boosted by a $3 billion convertible debt increase and an increase in cash from operations.
Coinbase cautioned investors not to extrapolate current results, citing the inherent volatility in crypto markets, but said it expects transaction revenue in October to come in around $385 million and subscription revenue in Q4 between $710 million and $790 million.
