**Coinbase Reports Strong Q3 2025 Earnings, Surpassing Wall Street Expectations**
*October 31, 2025*
Coinbase (Nasdaq: COIN) closed the third quarter of 2025 with impressive financial results, reporting earnings per share (EPS) of $1.50, significantly beating analysts’ estimates of $1.05 by 45%. The crypto exchange’s quarterly revenue reached $1.86 billion, surpassing expectations of $1.8 billion. This marked a 25% increase in revenue compared to the previous quarter.
### Surge in Trading Volume Drives Revenue Growth
The boost in revenue was largely driven by heightened trading activity, with total trading volume jumping 38% quarter-over-quarter. In the U.S. market alone, spot volume rose by 29%. Transaction revenue dominated earnings, contributing $1 billion to total revenue. Additionally, subscription and services revenue accounted for $747 million, while stablecoin transactions generated $355 million.
Coinbase reported a net income of $433 million for the quarter, with an adjusted EBITDA of $801 million. Reflecting on the results, Coinbase’s Co-founder and CEO Brian Armstrong stated during the earnings call, “It was another great quarter for Coinbase. Financially, Coinbase’s core business is incredibly strong, and we’re very well positioned for the opportunities ahead of us.”
### Strong Balance Sheet and Long-Term Investments
Coinbase continues to maintain a robust balance sheet and a diversified investment portfolio. At the end of the quarter, the company held $11.9 billion in U.S. dollar resources and $2.6 billion in long-term crypto investments. Its Bitcoin-only investment portfolio increased by $299 million, contributing to total assets exceeding $31 billion. Liabilities stood at over $15 billion.
### Expansion Through Strategic Acquisitions
The company is actively expanding its market presence through product innovation and global investments. Recently, Coinbase agreed to acquire Echo in a $375 million deal and has made another strategic investment in Indian crypto exchange CoinDCX. Furthermore, Coinbase completed the acquisition of Deribit, a prominent crypto options venue.
“Deribit is already the market leader in options,” said Coinbase CFO Alesia Haas. “They hold over 75% market share for options trading outside the U.S., and there are clear paths to expand the options market within the U.S.”
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### About the Author
**Arnab Shome** is an electronics engineer-turned-financial editor with extensive experience covering the cryptocurrency market for Finance Magnates. He later broadened his expertise to include forex markets. Arnab is passionate about the evolving regulatory landscape in financial markets and closely follows industry disruptions driven by new technologies.
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