News

Blockchain infrastructure company Coinbase (NASDAQ:COIN) missed Wall Street’s revenue expectations in Q1 CY2025, but sales rose 24.2% year on year to $2.03 billion. Its non-GAAP profit of $1.94 per share was 0.7% above analysts’ consensus estimates.

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Coinbase (COIN) Q1 CY2025 Highlights:

StockStory’s Take

Coinbase’s first quarter results reflected ongoing momentum in core trading and subscription businesses, driven by international derivatives expansion and stablecoin adoption. Management highlighted the strategic acquisition of Deribit, a global crypto options leader, as a key move to consolidate Coinbase’s position in derivatives and enhance cross-selling opportunities, especially for institutional clients. CEO Brian Armstrong emphasized the company’s focus on integrating spot, futures, and options trading, and pointed to strong growth in USDC (the U.S. dollar-backed stablecoin) balances as a source of recurring revenue.

Looking ahead, management cited macroeconomic uncertainty and volatile crypto asset prices as factors likely to impact trading activity and revenue in the near term. CFO Alesia Haas noted that lower asset prices in the early part of the second quarter could pressure blockchain rewards and subscription revenue. However, the leadership team maintained confidence in the company’s long-term product roadmap, continued international expansion, and the durability of its business model, stating that regulatory clarity and new product initiatives position Coinbase well for future growth.

Key Insights from Management’s Remarks

Coinbase’s management attributed the quarter’s performance to advances in derivatives trading, stablecoin utility, and expansion in international markets. Deviations from Wall Street expectations were largely due to a shift in trading volume mix and lower institutional fee rates.

Drivers of Future Performance

Coinbase’s management expects macro volatility and asset price fluctuations to impact trading volumes and revenues, while regulatory clarity and product innovation remain central to the company’s growth strategy.

Top Analyst Questions

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will monitor (1) the integration and performance of Deribit within Coinbase’s derivatives platform, (2) continued USDC adoption and the impact of new international regulatory approvals, and (3) the effect of macroeconomic and asset price volatility on trading and subscription revenues. Additional focus will be on regulatory developments in key markets and the pace of new product rollouts, including business payments and on-chain lending.

Coinbase currently trades at a forward EV/EBITDA ratio of 16×. Is the company at an inflection point that warrants a buy or sell? See for yourself in our free research report .

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