Coinbase Q1 Revenue Rises Despite Profit Decline

Crypto Reporter

Shalini Nagarajan

Crypto Reporter

Shalini Nagarajan

About Author

Shalini is a crypto reporter who provides in-depth reports on daily developments and regulatory shifts in the cryptocurrency sector.

Share

Last updated: 

May 8, 2025

Why Trust Cryptonews

Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas – from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews

Coinbase Global on Thursday reported a mixed set of results for the first quarter, with revenue climbing but profit sharply down, as the largest US crypto exchange faced higher costs and market volatility driven by erratic macroeconomic signals and ongoing digital asset turbulence.

The San Francisco-based company said revenue rose 24% year-on-year to $2b. However, that figure was down about 10% from the previous quarter and fell short of analyst estimates of $2.1b, according to LSEG data.

Transaction revenue remained a key contributor, increasing 17.3% to $1.26b. Meanwhile, revenue from the firm’s growing subscription and services business jumped 37% to $698.1m. This unit includes offerings such as staking and custodial services, which are less dependent on trading activity.

Heavy Marketing Spend and Asset Losses Drag Down Coinbase Profit

Net income for the quarter plunged 94% to $66m, or 24 cents per share, as the firm booked losses related to the declining value of its crypto holdings.

Coinbase marks these assets to market each quarter, exposing its earnings to the volatile swings in cryptocurrency prices. On an adjusted basis, the company reported a net income of $526.6m, or $1.94 per share, compared to $2.53 a year ago.

Operating expenses surged 51% to $1.3b, driven by heavier marketing spend and losses on held crypto assets. The stock dipped around 2% in after-hours trading and is down 17% so far this year.

Coinbase Bets on Derivatives as User Base Grows Beyond Trading

Despite the earnings miss, the platform logged its second-highest monthly transacting user count in company history. Chief financial officer Alesia Haas said many customers are now engaging with a broader range of services beyond trading. “We are gaining share, we are driving utility,” she said. “We are seeing a healthy maturation of the products.”

Coinbase also announced the acquisition of Deribit in a deal valued at $2.9b. The move signals the company’s ambition to expand deeper into the crypto derivatives market, a sector where Deribit handled nearly $1.2t in volume last year.

Looking ahead, Coinbase said it expects second-quarter revenue from subscriptions and services to fall between $600m and $680m. The company also disclosed that it generated about $240m in transaction revenue in April. While revenues from Circle’s USDC stablecoin rose 32% sequentially to $298m, growth was partially tempered by lower average interest rates.

Trending News
RecommendedPopular Crypto TopicsPrice Predictions

Explore new destinations with ease using the Garmin Drive 52 GPS Navigator! With over 17,988 ratings and a solid 4.4/5-star rating, this GPS system has been a top choice for travelers. Over 500+ units were bought in the past month, all for only $144.99.

This 5″ GPS navigator comes with essential driver alerts, real-time travel data, and external memory storage. The simple on-screen menus and bright, easy-to-see maps make it easy to navigate wherever you are. Plus, it’s road trip-ready with The HISTORY Channel database, featuring notable historic sites and much more to enhance your journey.

Don’t miss out—get your hands on the Garmin Drive 52 today for a smoother ride ahead! Buy Now for $144.99 on Amazon!

Help Power Techcratic’s Future – Scan To Support

If Techcratic’s content and insights have helped you, consider giving back by supporting the platform with crypto. Every contribution makes a difference, whether it’s for high-quality content, server maintenance, or future updates. Techcratic is constantly evolving, and your support helps drive that progress.

As a solo operator who wears all the hats, creating content, managing the tech, and running the site, your support allows me to stay focused on delivering valuable resources. Your support keeps everything running smoothly and enables me to continue creating the content you love. I’m deeply grateful for your support, it truly means the world to me! Thank you!