Coinbase, the largest cryptocurrency exchange in the U.S., recorded $2 billion in revenue for Q1 2025, marking a 40% increase compared to the same period last year. However, its net income dropped significantly to $66 million, down from $1.2 billion in Q1 2024, due to the ongoing slump in the crypto market.
According to crypto-focused media outlet CryptoSlate on May 9 (local time), Coinbase reported an adjusted EBITDA of $930 million and an adjusted net income of $527 million for the quarter. Revenue from subscriptions and services—classified as non-trading income—rose 9% quarter-over-quarter to $698 million, indicating a diversification in user demand.
Coinbase currently holds $9.9 billion in cash, cash equivalents, and USDC, with custody assets increasing by $25 billion during the quarter. Institutional trading volume reached $315 billion, and 39 new perpetual contracts were added to its global derivatives exchange, INTX. As a result, derivatives trading volume surpassed $80 billion, reinforcing Coinbase’s position as a key institutional trading platform.
The stablecoin segment stood out particularly. Average USDC holdings across Coinbase products rose 49% quarter-over-quarter to $12 billion, generating a 32% increase in revenue. On Coinbase’s Ethereum Layer 2 network, Base, stablecoin holdings rose 12% to $4 billion, while trading volume increased 16%, setting a new record for user engagement.
Coinbase also highlighted that 86% of institutional investors reported plans to invest in or hold digital assets this year, underscoring continued strong institutional demand in the crypto market. Full GAAP and non-GAAP details for the earnings report are expected to be disclosed in the 10-Q filing scheduled for release on May 9.
