Coinbase Global COIN 2025Q2 Earnings Preview Upside Potential with Regulatory Approvals

Forward-Looking Analysis
Coinbase Global is set to announce its Q2 2025 earnings results on July 31, 2025. Analysts expect the company to post quarterly earnings of $0.87 per share, indicating a decline of 16.4% compared to the year-ago period. Despite the anticipated drop, Coinbase is forecast to grow earnings and revenue by 13.4% and 5.9% per annum respectively, with EPS expected to grow by 9.6% per annum. The 27 analysts covering the stock maintain a consensus "Buy" rating with an average price target of $329.22, suggesting a potential downside of 15.94%. Notably, high cryptocurrency prices and market volatility are anticipated to benefit Coinbase's operations. Additionally, regulatory approval from international bodies could facilitate global expansion, bolstering its footprint and potentially enhancing its financial performance in the coming quarters.

Historical Performance Review
In Q1 2025, Coinbase Global reported revenue of $1.96 billion and net income of $65.61 million. The EPS for this period was $0.26, missing the consensus estimate of $2.18 by $0.24. Despite this, the gross profit was substantial at $1.73 billion, reflecting a strong underlying performance despite the earnings miss.

Additional News
Coinbase is eyeing expansion opportunities by gaining regulatory approval from international regulators, which would allow the company to increase its global footprint. This strategic move comes amid a highly volatile cryptocurrency market, which is seen as advantageous for Coinbase's growth. The focus on international expansion aligns with the company's long-term growth strategies, aiming to leverage global market dynamics. Furthermore, the stock is forecasted to grow earnings and revenue steadily, with a return on equity projected at 15.1% over the next three years, indicating robust growth prospects despite current challenges.

Summary & Outlook
Coinbase Global's overall financial health appears stable, supported by significant gross profit and potential growth catalysts such as regulatory approvals and high cryptocurrency prices. While Q2 2025 earnings are expected to decline, the company is positioned for growth with a forecasted increase in earnings and revenue. The potential downside in stock price is offset by strategic international expansion efforts. The outlook remains cautiously bullish, driven by anticipated benefits from regulatory developments and favorable market conditions, despite near-term earnings challenges.