In This Article:
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Revenue: $2 billion in total revenue for Q1 2025.
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Adjusted EBITDA: $930 million.
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Net Income: $66 million.
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Adjusted Net Income: $527 million.
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Transaction Revenue: $1.3 billion, down 19% quarter over quarter.
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Subscription and Services Revenue: $698 million, up 9% quarter over quarter.
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Stablecoin Revenue: $298 million, up 32% quarter over quarter.
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Consumer Trading Volume: $78 billion, down 17%.
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Institutional Trading Volume: $315 billion, down 9%.
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Total Operating Expenses: $1.3 billion, up 7%.
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USDC Market Cap: $60 billion, with average USDC held in Coinbase products increasing 49% quarter over quarter to $12 billion.
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Base Stablecoin Balances: $4 billion, up 12% quarter over quarter.
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Deribit Acquisition: Acquired for approximately $2.9 billion, enhancing profitability and trading revenues.
Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Coinbase Global Inc (NASDAQ:COIN) reported strong financial performance in Q1 2025, with $2 billion in revenue and $930 million in adjusted EBITDA.
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The company announced the acquisition of Deribit, making Coinbase the number one crypto derivative platform globally by open interest.
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Coinbase's USDC stablecoin hit a market cap all-time high of $60 billion, with average USDC held in Coinbase products increasing by 49% quarter over quarter.
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The company expanded its international presence by securing new licenses in Argentina and India, unlocking access to fast-growing crypto markets.
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Coinbase achieved a major judicial win with the dismissal of the SEC lawsuit, marking a significant milestone for the industry and regulatory clarity.
Negative Points
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Transaction revenue declined by 19% quarter over quarter, with consumer trading volume down 17% and institutional trading volume down 9%.
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The company is offering trading rebates and incentives to build liquidity in its derivatives trading business, impacting transaction revenue negatively.
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Macro uncertainty and global trade policy concerns may contribute to softer crypto trading markets and lower asset prices in Q2.
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Spot transaction volume declined approximately 12% month over month in April, reflecting broader market trends.
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The acquisition of Deribit involves a significant financial commitment of approximately $2.9 billion, which includes $700 million in cash and 11 million shares of Class A common stock.
Q & A Highlights
Q: Are there any plans for share buybacks? A: Alesia Haas, CFO, mentioned that the Board authorized a $1 billion share repurchase program with no expiration date. However, the company is also focusing on opportunistic M&A and other uses of cash, such as the recent $700 million cash acquisition of Deribit and withholding RSUs to reduce dilution.