Coinbase Global Inc (NASDAQ:COIN) shares jumped around 3.5% at Friday’s open after it topped Wall Street estimates for third-quarter earnings on Thursday, driven by robust trading activity and steady growth in subscription and services revenue.
The largest US cryptocurrency exchange reported total revenue of $1.87 billion, above analysts’ expectations of $1.8 billion, while earnings per share came in at $1.50, beating the consensus forecast of $1.21.
Trading volumes reached $295 billion, slightly below estimates, but transaction revenue surged to $1.05 billion, boosted by record options trading volumes following the company’s Deribit acquisition in August.
Deribit contributed about $52 million to revenue in the quarter, according to Jefferies analysts.
Subscription and services revenue, which includes income from stablecoins, staking, and custody, came in largely in line at $747 million, supported by higher USDC balances across Coinbase products. Average USDC balances rose 9% quarter-on-quarter to about $15 billion, while off-platform balances climbed 12% to $53 billion.
Adjusted EBITDA for the quarter stood at $801 million, beating consensus by $97 million, with margins of 42.9%, according to Jefferies.
Coinbase said institutional financing reached record highs, with growing demand from corporates, market makers, and hedge funds. The company also launched cross-margining for institutional clients, offering roughly double the capital efficiency of competitors, and fully rolled out its Coinbase One basic tier subscription, priced at $4.99 per month.
Looking ahead to the fourth quarter, Coinbase forecast subscription and services revenue between $710 million and $790 million, and said technology, development, and general expenses are expected to rise to $925 million to $975 million.
The company noted spending will increase sequentially, partly due to its acquisitions of Deribit and Echo, but said growth in operating expenses should slow in early 2026.
Management said Coinbase remains “early in exploring” a potential Base token, tied to its Base blockchain network, but did not provide details or a timeline.