# Coinbase Financials How [[Coinbase]] makes and loses money, from its SEC filings. All figures follow standard accounting rules (GAAP) unless marked otherwise. ## Year by year | Year | Revenue | Net income | Stablecoin revenue | |---|---|---|---| | 2024 | $6.56B | $2.58B | $910M | | 2025 | $7.18B | $1.26B | $1.35B | Coinbase ended 2025 with $11.3 billion in cash. ## Quarter by quarter | Quarter | Revenue | Net income (loss) | Adjusted EBITDA* | |---|---|---|---| | Q3 2025 | $1,868.7M | $432.6M | $800.7M | | Q4 2025 | $1,781.1M | ($666.7M) | $565.9M | | Q1 2026 | $1,413.0M | ($394.1M) | $303.3M | | Q2 2026 | $1,220.1M | ($359.5M) | $207.8M | | Q3 2026 | $1,215.6M | $718.7M | $332.9M | *Adjusted EBITDA is the company's own measure of operating earnings, excluding items such as stock pay and gains or losses on its crypto holdings. ## Why profits swing so much Coinbase holds a large amount of crypto on its own balance sheet, and accounting rules make it report changes in that crypto's value as profit or loss each quarter. That swamps the results of the business itself. - **Q4 2025:** a $666.7 million loss, mostly from a $718 million loss on its crypto portfolio and a $395 million loss on strategic investments, including its stake in [[Circle]]. - **Q3 2026:** a $718.7 million profit, of which about $715 million came from gains on crypto held for investment. Operating income, the profit from actually running the business, was only $61.7 million. The underlying business shrank through 2026. Q3 2026 revenue was down 35% from a year earlier: transaction fees were $590 million, and subscriptions and services were $570 million, about half of net revenue. The company cut about 700 jobs, roughly 14% of its staff, in May 2026, citing market conditions and what it called "the AI era." ## The USDC deal with Circle Coinbase helped create the USDC stablecoin, a crypto token meant to stay worth $1, and shares in the interest earned on the dollars backing it. Under its agreement with [[Circle]], USDC's issuer, Coinbase keeps all of the reserve income on USDC held on its own platform and half of the income on USDC held elsewhere. - Stablecoin revenue was $1.35 billion in 2025 and $307 million in Q3 2026. - An average of $22 billion of USDC sat in Coinbase products in Q3 2026. - Coinbase said in mid-2026 that the agreement would renew on the same terms. One trade publication reported it now runs through 2029; that date has a single source. This income depends on interest rates and on the fight over whether stablecoin holders may be paid rewards, which is the main dispute over the [[CLARITY Act]]. See [[Coinbase Regulatory File]]. ## Other lines of business - **Prediction markets:** launched in December 2025 using [[Kalshi]]; Coinbase said in Q3 2026 that they were running at more than $200 million a year. See [[Prediction Markets]]. - **Base:** Coinbase's own blockchain network. The company says it leads similar networks in trading and that more than $1 billion of tokenized stocks has traded on it. These are company claims. - **Stock trading:** launched in the Coinbase app in December 2025. ## Acquisitions | Deal | Announced | Closed | Price | |---|---|---|---| | [[Deribit]], a crypto options exchange | May 8, 2025 (about $2.9B) | Aug 14, 2025 | $4.29B: $721M in cash plus $3.57B in Coinbase stock, valued at the closing share price | | Echo, a crypto fundraising platform | — | Oct 8, 2025 | $176M: $68M in cash plus $108M in stock | Deribit was folded into Coinbase International Exchange in October 2026. Coinbase also made a $180 million strategic investment in 2026 in a company it has not named. ## Balance sheet and buybacks (Q3 2026) - Cash: $8.6 billion. - Long-term debt repaid in 2026: $1.27 billion. - Stock buyback authorization remaining: $2.0 billion. ## Milestones - Joined the S&P 500 on May 19, 2025, replacing Discover Financial. It was the first company built around crypto trading to join the index. ## Sources - [Q4 2025 shareholder letter](https://www.sec.gov/Archives/edgar/data/1679788/000167978826000011/q425shareholderletter.htm) · [Q3 2026 earnings presentation](https://www.sec.gov/Archives/edgar/data/0001679788/000167978826000121/q326earningsdeck_vsec.htm) · [Q3 2026 quarterly report (10-Q)](https://www.sec.gov/Archives/edgar/data/0001679788/000167978826000122/coin-20260930.htm) - Quarterly results for Q1 and Q2 2026: [Coinbase 8-K filings](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001679788&type=8-K) - [May 2026 restructuring 8-K](https://www.sec.gov/Archives/edgar/data/1679788/000167978826000049/coin-20260505.htm) - [Nasdaq: Coinbase to join the S&P 500](https://www.nasdaq.com/press-release/coinbase-global-set-join-sp-500-2025-05-12) · [The Block: Deribit deal](https://www.theblock.co/post/353657/coinbase-agrees-to-acquire-crypto-derivatives-exchange-deribit-in-record-2-9-billion-deal) · [Stablecoin Insider: USDC agreement](https://stablecoininsider.org/circle-coinbase-usdc-agreement-renewal-2029/) ## See also - [[Coinbase Dossier]] — the full dossier - [[Coinbase Investors]] · [[Coinbase Regulatory File]]