Coinbase Global 2025 Q2 Earnings Misses Targets as Net Income Jumps 3852.7%

Coinbase Global (COIN) announced its fiscal 2025 Q2 earnings on July 31st, revealing a significant increase in net income, which soared by 3852.7% from the previous year. However, the company's revenue of $1.42 billion fell short of expectations, which were set between $1.56 billion and $1.59 billion. Looking ahead to Q3, Coinbase anticipates subscription and services revenue to range between $665 million and $745 million, indicating a potential quarter-over-quarter increase. Despite these projections, the market responded negatively due to unmet expectations and lowered transaction revenue guidance.

Revenue

The total revenue of Coinbase Global increased by 2.9% to $1.42 billion in 2025 Q2, up from $1.38 billion in 2024 Q2.

Earnings/Net Income

Coinbase Global's EPS rose 3633.3% to $5.60 in 2025 Q2 from $0.15 in 2024 Q2, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $1.43 billion in 2025 Q2, marking 3852.7% growth from $36.15 million in 2024 Q2. This dramatic increase in EPS indicates robust profitability for the quarter.

Price Action

The stock price of Coinbase Global has edged down 1.34% during the latest trading day, dropped 4.77% during the most recent full trading week, and climbed 7.78% month-to-date.

Post-Earnings Price Action Review

The strategy of buying COIN when earnings beat and holding for 30 days resulted in a -26.68% return, significantly underperforming the benchmark return of 37.28%. This strategy experienced a maximum drawdown of 0.00% and a Sharpe ratio of -0.08, with volatility recorded at 99.34%. The negative return highlights the underperformance of COIN despite earnings beats, influenced by the stock's high volatility and unfavorable market conditions. The analysis suggests that investors may need to reconsider their strategies, given the high volatility and potential for drawdowns.

CEO Commentary

Brian Armstrong, Co-Founder and CEO of Coinbase Global, expressed optimism about the company's performance, noting, "It was another great quarter for Coinbase," with total revenue at $1.5 billion and adjusted EBITDA of $512 million. He highlighted strategic growth in trading and stablecoin payments, emphasizing the plan to create an "everything exchange," integrating various asset classes on-chain. Armstrong mentioned the company's commitment to expanding access to crypto assets and enhancing its derivatives product suite, stating, "With regulatory clarity finally emerging, we believe crypto rails are poised to power an increasing share of global GDP." He reinforced the importance of building compliant and accessible products for all users.

Guidance

For Q3, Coinbase expects subscription and services revenue to fall between $665 million and $745 million, reflecting an approximate 8% quarter-over-quarter increase at the midpoint. The company anticipates July transaction revenue of about $360 million and plans to increase technology and development expenses to between $800 million and $850 million. Armstrong indicated a focus on headcount growth aligned with product development in response to expanding opportunities due to regulatory clarity.

Additional News

Coinbase Global recently announced a strategic partnership with JPMorgan to facilitate easier cryptocurrency purchases. This collaboration will enable Chase customers to link their bank accounts directly to Coinbase wallets, allowing for seamless transfer of reward points and funding of crypto wallets using JPMorgan credit cards. The partnership is set to roll out new features in the fall, with additional developments expected by 2026. Moreover, Coinbase is expanding its product offerings, including tokenized stocks and prediction markets, aiming to become a comprehensive "everything exchange" that integrates multiple asset classes. The company is also focusing on international expansion, aligning with emerging regulatory frameworks.