Coinbase Reports $1.4 Billion Net Revenue and Significant Net Income Growth in Q2 2025

Coinbase Global, Inc. reported its financial results for the second quarter of 2025, revealing a net revenue of $1.4 billion, a slight increase from $1.4 billion in the same period of 2024. For the first half of 2025, the company generated $3.4 billion in net revenue, compared to $3.0 billion in the prior year. The increase in revenue was driven by a rise in subscription and services revenue, which reached $655.8 million for the quarter, up from $599.0 million a year earlier. However, transaction revenue saw a decline, totaling $764.3 million, down from $780.9 million in the previous year, attributed to a decrease in average blended fee rates.

The company reported a significant increase in net income, reaching $1.4 billion for the second quarter, compared to $36.2 million in the same quarter of 2024. This growth was supported by a substantial rise in adjusted EBITDA, which amounted to $512.1 million for the quarter, down from $595.6 million in the previous year. The increase in net income was primarily due to a favorable change in the fair value of strategic investments, particularly following the initial public offering of Circle Internet Group, Inc.

Operationally, Coinbase reported an increase in Monthly Transacting Users (MTUs), reflecting a growing customer base influenced by favorable market conditions. The total assets on the platform reached approximately $425 billion, a 63% increase from $261 billion a year earlier, driven largely by higher Bitcoin values. The company also noted a significant rise in USDC balances, which increased by 56% year-over-year, indicating strong customer engagement with its products.

In terms of strategic developments, Coinbase is in the process of acquiring Deribit, a crypto derivatives exchange, for $700 million in cash and stock, expected to close by the end of 2025. The company also renewed a multi-year technology services agreement, committing $600 million in total purchases over the next four years. Looking ahead, Coinbase anticipates an increase in technology and development expenses due to headcount growth, while sales and marketing expenses are expected to remain stable, contingent on USDC balances and performance marketing opportunities.

Overall, Coinbase's financial performance in the second quarter of 2025 reflects a complex interplay of revenue growth, strategic investments, and operational expansion, positioning the company for continued engagement in the evolving crypto market.