Coinbase Q2 Revenue Hits $1.5B, Falls 26% from Q1, Misses Analyst Expectations

Coinbase reported Q2 2025 revenue of $1.5B, a 3.3% YoY increase, but a 26% drop from Q1. Retail trading lagged, while stablecoin revenue climbed 12% to $332M. The company fell short of analyst expectations across several key categories. Coinbase plans to expand into RWA, derivatives, and token sales.

Coinbase Global, Inc. (COIN) has reported its financial results for Q2 2025, revealing a total revenue of $1.5 billion, a 3.3% year-over-year (YoY) increase but a 26% quarter-over-quarter (QoQ) decline from Q1 2025. Despite the drop in revenue, the company highlighted growth in stablecoin revenue, which climbed 12% to $332 million [1].

The company's net income stood at $1.4 billion, marking a significant increase of 216% QoQ and 396.9% YoY. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) were $512 million, down 55% QoQ and 14% YoY. Total transaction revenue was $764 million, down 39% QoQ and 2% YoY, while subscription and services revenue reached $656 million, down 6% QoQ and up 9% YoY [1].

Coinbase's adjusted net income was $33 million, and the company ended the quarter with $1.8 billion in its crypto asset investment portfolio. The exchange held 11,776 Bitcoin worth $1.3 billion by the end of Q2, compared to 9,267 BTC in Q1. Total operating expenses in Q2 stood at $1.5 billion, up 15% QoQ and up 36% YoY [1].

Despite missing analyst expectations, Coinbase's CEO Brian Armstrong expressed confidence in the company's future, emphasizing growth in key areas such as the "everything exchange," derivatives products, and tokenized equities. The company also announced its intention to expand into regulated wholesale assets (RWA), derivatives, and token sales [1].

The company's CFO, Alesia Jeanne Haas, provided Q3 guidance, expecting subscription and services revenue to be within the range of $665 million to $745 million, up approximately 8% QoQ at the midpoint. Expense expectations are for technology, development, and G&A between $800 million and $850 million, and sales and marketing between $190 million and $290 million [1].

Coinbase's Q2 results demonstrate a mixed performance, with a decline in total revenue but strong growth in stablecoin revenue and net income. The company's strategic focus on expanding its asset platform, deepening its payments stack, and advancing tokenization and partnerships positions it to capture a growing share of the digital financial ecosystem [1].

References:

[1] https://seekingalpha.com/news/4476183-coinbase-sees-q3-subscription-and-services-revenue-growth-target-of-up-to-745m-as-it-expands
[2] https://finance.yahoo.com/news/coinbase-nails-wall-street-forecasts-231216905.html