Coinbase Q3 2025 Earnings Preview : Trading Volume Recovery Meets Margin Reality
Institutional flows and stablecoin partnerships fuel optimism, but margins and regulation remain the real test.
Coinbase reports after the U.S. close this Thursday (Oct 30 ET / Oct 31 UAE). The exchange enters earnings season on the back of record trading volume and expanding institutional interest. Yet, despite upbeat signals, profitability remains fragile as fee compression, regulatory friction, and cost pressures persist.
Street consensus points to EPS between $1.10 – $1.13 on revenue of $1.78 – $1.80 billion, up roughly 44 % year-over-year. The market’s key question: is this a sustainable recovery or another crypto-driven cycle?
Core Metrics Snapshot
Metric |
Q3 FY25 (est.) |
Q3 FY24 |
YoY Change |
| EPS (adjusted) | $1.13 | $0.66 | +71% |
| Revenue | $1.79 B | $1.24 B | +44% |
| Gross Margin | 86.3% | 86.2% | Flat |
| Operating Margin | 34.0% | 36.3% | –2.3 pts |
| Net Margin | 39.3% | 39.2% | +0.1 pt |
| Trading Volume | $299 B | $185 B | +62% |
| Monthly Transacting Users | 8.6 M | 7.8 M | +10% |
| Subscription & Services Revenue | $712 M | $556 M | +28% |
| Q3 FY25 (est.) | Q3 FY24 | YoY Change | |
EPS (adjusted) |
Q3 FY25 (est.): $1.13 | Q3 FY24: $0.66 | YoY Change: +71% |
Revenue |
Q3 FY25 (est.): $1.79 B | Q3 FY24: $1.24 B | YoY Change: +44% |
Gross Margin |
Q3 FY25 (est.): 86.3% | Q3 FY24: 86.2% | YoY Change: Flat |
Operating Margin |
Q3 FY25 (est.): 34.0% | Q3 FY24: 36.3% | YoY Change: –2.3 pts |
Net Margin |
Q3 FY25 (est.): 39.3% | Q3 FY24: 39.2% | YoY Change: +0.1 pt |
Trading Volume |
Q3 FY25 (est.): $299 B | Q3 FY24: $185 B | YoY Change: +62% |
Monthly Transacting Users |
Q3 FY25 (est.): 8.6 M | Q3 FY24: 7.8 M | YoY Change: +10% |
Subscription & Services Revenue |
Q3 FY25 (est.): $712 M | Q3 FY24: $556 M | YoY Change: +28% |
Sources: Refinitiv, Zacks, Coinbase Investor Relations
Three Pressure Points
Volume vs Fee Compression
Institutional activity boosted total volumes sharply, but lower transaction fees are expected to continue pressuring profitability.
With gross and operating margins projected to remain flat, investors will focus on cost discipline and efficiency improvements to ensure that revenue growth translates into sustainable earnings power. The market will also gauge whether diversification beyond trading can shield profits if volumes cool.
Regulatory Crossroads
Ongoing SEC oversight in the U.S. and new European rules (MiCA) pose headline risk. Coinbase’s expansion in the Middle East and Asia acts as a hedge against domestic policy uncertainty.
Subscription Growth Sustainability
Subscriptions and staking services (now roughly 28 % of revenue) offer stability but depend on ongoing market engagement. If crypto volatility fades, growth in this segment may slow.
Analyst & Client Sentiment
Analyst Ratings on TipRanks: 8 Strong Buys | 15 Buys | 8 Holds | 2 Sell
Mean price target ≈ $334, implying ~7 % downside from current levels (~$359).
Client Positioning (IG data): 91 % long / 9 % short.
While most clients remain bullish, short-term profit-taking has picked up (58 % sells this week, 76 % this month) as traders hedge ahead of earnings.
Market Buzz & Headlines
- Citi Partnership: Coinbase and Citi are collaborating on digital asset payments and stablecoin settlement solutions, reinforcing institutional credibility.
- Venture Expansion: Coinbase Ventures invested in Kite to advance agentic payment protocols, aligning with AI-driven fintech growth.
- JP Morgan Upgrade: Shares climbed after a rating upgrade to Overweight, citing improved execution and institutional adoption.
- Crypto Macro Tailwind: Wall Street’s record highs and a cooling inflation print sparked renewed interest in risk assets, including digital assets.
Media tone: Coinbase is increasingly portrayed as a bridge between crypto and traditional finance, not just a speculative proxy for Bitcoin
Peer Snapshot & Valuation
Company |
P/E (LTM) |
EPS Growth |
ROE |
D/E |
YTD % Chg |
| Coinbase Global | 34.9× | +298% | 31.1% | 35.1% | +95% |
| Block Inc | 48× | –26% | 4.8% | 26% | +8% |
| PayPal | 15× | –0.2% | 20% | 57% | +3% |
| Robinhood | 74× | +225% | 19% | 157% | +7% |
| ICE | 31× | +3% | 10% | 67% | +10% |
| P/E (LTM) | EPS Growth | ROE | D/E | YTD % Chg | |
Coinbase Global |
P/E (LTM): 34.9× | EPS Growth: +298% | ROE: 31.1% | D/E: 35.1% | YTD % Chg: +95% |
Block Inc |
P/E (LTM): 48× | EPS Growth: –26% | ROE: 4.8% | D/E: 26% | YTD % Chg: +8% |
PayPal |
P/E (LTM): 15× | EPS Growth: –0.2% | ROE: 20% | D/E: 57% | YTD % Chg: +3% |
Robinhood |
P/E (LTM): 74× | EPS Growth: +225% | ROE: 19% | D/E: 157% | YTD % Chg: +7% |
ICE |
P/E (LTM): 31× | EPS Growth: +3% | ROE: 10% | D/E: 67% | YTD % Chg: +10% |
Sources: Refinitiv
Coinbase still trades at a premium to traditional fintech peers, supported by its hybrid role but vulnerable to execution risk.
ESG Progress
Coinbase’s ESG score rose to 34.1 (from 19.5 YoY) driven by improved governance and transparency.
Governance (36.5) and Social (38.3) scores improved, while environmental impact remains limited given its digital model. The trend shows greater institutional comfort despite regulatory headwinds.
Technical Setup
Coinbase trades near $359, stabilizing after breaking out of October’s downtrend. Support holds around $325–$340, while resistance sits at $375–$390. A close above $390 could open the way to $410, but failure to hold above $340 risks a pullback. RSI remains neutral, showing room for momentum to build if earnings confirm stronger volumes.
Why This Matters
Coinbase’s results will test whether the exchange can convert volume growth into durable profitability while navigating a tightening regulatory landscape. If subscription revenue and institutional flows hold up, Coinbase could cement its position as the gateway between crypto and mainstream finance. If not, its valuation premium faces a reality check.
For now, stock remains the most direct public proxy for institutional confidence in digital assets.
Sources: Refinitiv, Zacks, TipRanks, MarketBeat, Coinbase IR, IG Client Sentiment.
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