We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Coinbase Q3 Earnings and Revenues Beat Estimates, Volumes Rise Y/Y
Read MoreHide Full Article
Key Takeaways
Coinbase's Q3 EPS of $1.44 beat estimates by 39.8% and more than doubled year over year.
Trading volume surged 59.4% to 295 million, driving a 55.1% revenue jump to $1.9 billion.
Subscription and services revenues climbed 34.3% to $747 million, hitting multiple all-time highs.
Coinbase Global, Inc. (COIN - Free Report) reported third-quarter 2025 net operating earnings per share of $1.44, which beat the Zacks Consensus Estimate by 39.8%. The bottom line more than doubled year over year.
COIN witnessed higher transaction as well as subscription and services revenues in the quarter, while operating expenses increased. Quarterly results were driven by continued product execution as well as price increases and the long tail of assets as well as concerted effort to attract and retain high priority traders.
Operational Update
Total trading volume increased 59.4% year over year to 295 million in the reported quarter. The Zacks Consensus Estimate was pegged at 320 million.
Total revenues of $1.9 billion beat the Zacks Consensus Estimate by 7.1%. The top line increased 55.1% year over year on higher transaction revenues, subscription and services revenues and other revenues.
Coinbase Global, Inc. Price, Consensus and EPS Surprise
Total transaction revenues increased 82.7% year over year to $1 billion in the quarter. The increase was due to higher consumer transaction revenues as well as institutional transaction revenues. The Zacks Consensus Estimate was pegged at $979 million.
Total subscription and services revenues increased 34.3% year over year to $747 million in the reported quarter, aided by strong native unit inflows, which drove another quarter of all-time highs, including average USDC balances, average loan balances across our institutional financing products, and Assets Under Custody. The Zacks Consensus Estimate was pegged at $712 million.
Total operating expenses increased 29.2% to $1.4 billion in the quarter due to higher transaction expense, technology and development, sales and marketing and general and administrative expenses as well as other operating expense. Adjusted EBITDA was $800.6 million in the reported quarter, which improved 78.5% from the year-ago quarter.
Financial Update
Coinbase exited the third quarter with cash and cash equivalents of $8.7 billion, up 1.5% from 2024-end. As of Sept. 30, 2025, long-term debt increased 40.1% from 2024-end to $5.9 billion. Shareholders' equity was $12.1 billion at third-quarter 2025-end, up 55.9% from 2024-end.
Net cash used by operating activities was $638.8 million in the first nine months of 2025 versus $1.6 billion provided in the year-ago period.
Share Repurchase Program
In October 2025, the board of directors increased the aggregate repurchase authorization under the program from $1 billion to $2 billion and expanded the scope of the repurchases to include a portion of the aggregate principal amount of long-term debt.
Q4 2025 Outlook
Coinbase expects subscription and services revenues to be in the range of $710-$790 million, reflecting the growth of both USDC market capitalization (which reached a new all-time high in October) and Coinbase One subscriber base, offset by market expectations of interest rate cuts.
Transaction expenses are expected to be in the mid-teens as a percent of net revenues.
Coinbase expects technology and development and general and administrative expenses to be in the range of $925-$975 million, driven by headcount growth and acquisitions of Deribit and Echo.
Coinbase expects sales and marketing expenses to increase quarter over quarter to $215-$213 million.
American Express Company (AXP - Free Report) reported third-quarter 2025 earnings per share (EPS) of $4.14, which beat the Zacks Consensus Estimate by 4.6%. The bottom line climbed 19% year over year. Total revenues, net of interest expense, amounted to $18.4 billion, which beat the Zacks Consensus Estimate by 2.4%. The top line improved 11% year over year in the quarter under review.
Network volumes of $479.2 billion rose 9% year over year in the third quarter, driven by higher U.S. consumer spending. The figure beat the Zacks Consensus Estimate by 1.2%. Total interest income of $6.6 billion increased 8% year over year and surpassed the consensus mark by 3.4%. Provision for credit losses fell 5% year over year to $1.3 billion, benefiting from lower reserve build.
American Express now anticipates revenues to increase between 9% and 10% in 2025 from the 2024 level of $65.9 billion. Management now expects EPS in the range of $15.20-$15.50, above the previously projected band of $15.00-$15.50, the midpoint of which indicates an improvement of 9.6% from the 2024 level of $14.01.
Bread Financial Holdings’ (BFH - Free Report) operating income of $4.02 per share for the third quarter of 2025 beat the Zacks Consensus Estimate by 90.5%. The bottom line more than doubled year over year. Revenues decreased 1.2% year over year to $971 million. The top line, however, beat the consensus estimate by 0.2%.
Credit sales of $6.8 billion increased 5% year over year, driven by new partner growth and increased general-purpose spending. Average loan decreased 1% to $17.6 billion, while end-of-period loan declined 2% to $17.7 billion, due to an increasing payment rate and the ongoing effect of elevated gross losses.
BFH projects average credit card and other loans to be flat to slightly down from 2024. Total revenues (excluding any gain on portfolio sale) are expected to be relatively flat. The net loss rate is expected in the range of 7.8% to 7.9%.
Synchrony Financial (SYF - Free Report) reported third-quarter 2025 adjusted EPS of $2.86, which surpassed the Zacks Consensus Estimate by 28.8%. The bottom line gained 47.4% year over year. Net interest income was $4.7 billion, which grew 2.4% year over year. It surpassed the consensus mark by 0.6%. Retailer share arrangements of Synchrony advanced 12% year over year to $1 billion in the quarter under review.
Total deposits dipped 2% year over year to $79.9 billion and fell short of our estimate of $83 billion. Provision for credit losses was $1.1 billion, which tumbled 28.2% year over year on the back of a reserve release. The metric came in lower than our estimate of $1.5 billion.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
Coinbase Q3 Earnings and Revenues Beat Estimates, Volumes Rise Y/Y
Key Takeaways
Coinbase Global, Inc. (COIN - Free Report) reported third-quarter 2025 net operating earnings per share of $1.44, which beat the Zacks Consensus Estimate by 39.8%. The bottom line more than doubled year over year.
COIN witnessed higher transaction as well as subscription and services revenues in the quarter, while operating expenses increased. Quarterly results were driven by continued product execution as well as price increases and the long tail of assets as well as concerted effort to attract and retain high priority traders.
Operational Update
Total trading volume increased 59.4% year over year to 295 million in the reported quarter. The Zacks Consensus Estimate was pegged at 320 million.
Total revenues of $1.9 billion beat the Zacks Consensus Estimate by 7.1%. The top line increased 55.1% year over year on higher transaction revenues, subscription and services revenues and other revenues.
Coinbase Global, Inc. Price, Consensus and EPS Surprise
Coinbase Global, Inc. price-consensus-eps-surprise-chart | Coinbase Global, Inc. Quote
Total transaction revenues increased 82.7% year over year to $1 billion in the quarter. The increase was due to higher consumer transaction revenues as well as institutional transaction revenues. The Zacks Consensus Estimate was pegged at $979 million.
Total subscription and services revenues increased 34.3% year over year to $747 million in the reported quarter, aided by strong native unit inflows, which drove another quarter of all-time highs, including average USDC balances, average loan balances across our institutional financing products, and Assets Under Custody. The Zacks Consensus Estimate was pegged at $712 million.
Total operating expenses increased 29.2% to $1.4 billion in the quarter due to higher transaction expense, technology and development, sales and marketing and general and administrative expenses as well as other operating expense. Adjusted EBITDA was $800.6 million in the reported quarter, which improved 78.5% from the year-ago quarter.
Financial Update
Coinbase exited the third quarter with cash and cash equivalents of $8.7 billion, up 1.5% from 2024-end. As of Sept. 30, 2025, long-term debt increased 40.1% from 2024-end to $5.9 billion. Shareholders' equity was $12.1 billion at third-quarter 2025-end, up 55.9% from 2024-end.
Net cash used by operating activities was $638.8 million in the first nine months of 2025 versus $1.6 billion provided in the year-ago period.
Share Repurchase Program
In October 2025, the board of directors increased the aggregate repurchase authorization under the program from $1 billion to $2 billion and expanded the scope of the repurchases to include a portion of the aggregate principal amount of long-term debt.
Q4 2025 Outlook
Coinbase expects subscription and services revenues to be in the range of $710-$790 million, reflecting the growth of both USDC market capitalization (which reached a new all-time high in October) and Coinbase One subscriber base, offset by market expectations of interest rate cuts.
Transaction expenses are expected to be in the mid-teens as a percent of net revenues.
Coinbase expects technology and development and general and administrative expenses to be in the range of $925-$975 million, driven by headcount growth and acquisitions of Deribit and Echo.
Coinbase expects sales and marketing expenses to increase quarter over quarter to $215-$213 million.
Zacks Rank
COIN currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Peer Releases
American Express Company (AXP - Free Report) reported third-quarter 2025 earnings per share (EPS) of $4.14, which beat the Zacks Consensus Estimate by 4.6%. The bottom line climbed 19% year over year. Total revenues, net of interest expense, amounted to $18.4 billion, which beat the Zacks Consensus Estimate by 2.4%. The top line improved 11% year over year in the quarter under review.
Network volumes of $479.2 billion rose 9% year over year in the third quarter, driven by higher U.S. consumer spending. The figure beat the Zacks Consensus Estimate by 1.2%. Total interest income of $6.6 billion increased 8% year over year and surpassed the consensus mark by 3.4%. Provision for credit losses fell 5% year over year to $1.3 billion, benefiting from lower reserve build.
American Express now anticipates revenues to increase between 9% and 10% in 2025 from the 2024 level of $65.9 billion. Management now expects EPS in the range of $15.20-$15.50, above the previously projected band of $15.00-$15.50, the midpoint of which indicates an improvement of 9.6% from the 2024 level of $14.01.
Bread Financial Holdings’ (BFH - Free Report) operating income of $4.02 per share for the third quarter of 2025 beat the Zacks Consensus Estimate by 90.5%. The bottom line more than doubled year over year. Revenues decreased 1.2% year over year to $971 million. The top line, however, beat the consensus estimate by 0.2%.
Credit sales of $6.8 billion increased 5% year over year, driven by new partner growth and increased general-purpose spending.
Average loan decreased 1% to $17.6 billion, while end-of-period loan declined 2% to $17.7 billion, due to an increasing payment rate and the ongoing effect of elevated gross losses.
BFH projects average credit card and other loans to be flat to slightly down from 2024. Total revenues (excluding any gain on portfolio sale) are expected to be relatively flat. The net loss rate is expected in the range of 7.8% to 7.9%.
Synchrony Financial (SYF - Free Report) reported third-quarter 2025 adjusted EPS of $2.86, which surpassed the Zacks Consensus Estimate by 28.8%. The bottom line gained 47.4% year over year. Net interest income was $4.7 billion, which grew 2.4% year over year. It surpassed the consensus mark by 0.6%. Retailer share arrangements of Synchrony advanced 12% year over year to $1 billion in the quarter under review.
Total deposits dipped 2% year over year to $79.9 billion and fell short of our estimate of $83 billion. Provision for credit losses was $1.1 billion, which tumbled 28.2% year over year on the back of a reserve release. The metric came in lower than our estimate of $1.5 billion.