Coinbase Q2 Net Income Surges 400% on $1.5 Billion Crypto Gains

Coinbase Global Inc. reported second-quarter 2025 financial results that showcased a strong net income of $1.4 billion, driven largely by $1.5 billion in pre-tax gains from strategic crypto investments and unrealized gains from its holdings. Total revenue for the quarter was $1.5 billion, slightly below Wall Street’s expected $1.687 billion [1]. Despite the revenue shortfall, the company exceeded expectations in key metrics, including Adjusted Net Income of $33 million and Adjusted EBITDA of $512 million [2].

Transaction revenue for Q2 came in at $764 million, while subscriptions and services revenue reached $656 million—fueled by rising USDC balances, increased staking activity, and record Prime Financing balances. Coinbase also reported $13.8 billion in average USDC balances, a 13% increase from the previous quarter, largely attributed to the reintroduction of a rewards program [3].

The company’s on-chain strategy continued to expand during the quarter, with the introduction of a broad range of CFTC-approved perpetual futures contracts, which contributed to record volumes and open interest on its international derivatives exchange. Coinbase also integrated USDC into Shopify Payments, Coinbase Business, and the Coinbase One Card, enhancing the utility of stablecoins in everyday consumer spending [4].

In its Prime Financing division, the firm reported record highs in lending activity, with 16 of its top 25 institutional clients now utilizing its financing tools. Retail users were also able to access instant USDC loans backed by BTC, with total open collateral now exceeding $1 billion [5]. Meanwhile, Shopify merchants in the U.S. began accepting USDC payments, with users earning 1% in rewards, as part of Coinbase’s broader push to integrate crypto into mainstream commerce.

Custody operations also saw a significant scale-up, with Coinbase now managing $245.7 billion in crypto under custody—its highest market share to date. The firm also reported holding over 80% of all BTC and ETH ETF assets based in the U.S. [6].

Operating expenses for Q2 rose by $193 million, or 15%, primarily due to a $307 million charge related to a data breach disclosed in May. However, other major costs, including tech, administrative, and marketing expenses, decreased by 2%, totaling $977 million. Coinbase currently employs 4,279 full-time staff.

Coinbase’s performance was released against a backdrop of evolving crypto regulation in the U.S., with Congress passing the CLARITY Act and President Trump signing the GENIUS Act—both aimed at providing regulatory clarity for stablecoins and market structure. The company also announced plans to launch an “everything exchange” that will bring tokenized assets, derivatives, and prediction markets onto its platform, starting in the U.S. and expanding globally as regulatory approvals are secured [7].

Looking ahead, Coinbase expects transaction revenue for July to reach $360 million. For the full quarter of Q3, the firm projects $665 to $745 million in subscription and service revenue, driven by continued growth in USDC’s market cap and higher crypto prices. Tech and administrative costs are expected to range between $800 and $850 million, with marketing expenses estimated at $190 to $290 million, depending on performance-based campaigns and user engagement [8].

Despite the strong net income, Coinbase shares fell nearly 9% in after-hours trading following the earnings release, as investors appeared unimpressed by the revenue shortfall [9]. The firm’s CEO, Brian Armstrong, emphasized that Coinbase delivered “solid financial results” for the quarter and outlined a long-term vision to become the top financial app globally over the next decade [10].

[1] GuruFocus. (2025). Coinbase Global Inc Reports Q2 2025 Earnings: Revenue at $1.5 Billion Missing Estimates. https://www.gurufocus.com/news/3023803/coinbase-global-inc-reports-q2-2025-earnings-revenue-at-15-billion-missing-estimates

[2] TheStreet. (2025). Coinbase Nails Wall Street Forecasts in Surprising Earnings. https://www.thestreet.com/crypto/markets/coinbase-nails-wall-street-forecasts-in-surprising-earnings

[3] CoinMarketCap. (2025). Coinbase reports $1.5 billion in Q2 revenue and $1.4 billion in net income. https://coinmarketcap.com/community/articles/688bd81841c6fa7a8337d9e4/

[4] StreetInsider. (2025). After-hours movers: Apple, Amazon, Roku, Reddit, Coinbase. https://www.streetinsider.com/Special+Reports/After-hours+movers%3A+Apple%2C+Amazon%2C+Roku%2C+Reddit%2C+Coinbase/25131080.html

[5] Ag Risk Solutions. (2025). Stocks Settle Mixed on Hawkish Fed Chair Powell. https://www.ag-risk-solutions.com/news/story/33757049/stocks-settle-mixed-on-hawkish-fed-chair-powell

[6] The Wall Street Journal. (2025). Coinbase's Profit Jumps on Crypto Investment Gains. https://www.wsj.com/business/earnings/coinbase-coin-q2-earnings-report-2025-074cfb1e

[7] TipRanks. (2025). Coinbase Reports Q2 Adjusted EPS 12c vs $1.10 Last Year. https://www.tipranks.com/news/the-fly/coinbase-reports-q2-adjusted-eps-12c-vs-1-10-last-year-thefly