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Coinbase Q1 2025 Earnings Underperform Expectations

2 mins
Updated by Mohammad Shahid
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In Brief

  • Coinbase's Q1 2025 earnings missed expectations, with a $200 million shortfall in revenue and a meager $0.24 EPS.
  • Despite the disappointing results, user activity remains strong with a 49% QoQ increase in USDC balances.
  • The company remains optimistic, citing the acquisition of Deribit and regulatory progress as key growth drivers.
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Coinbase’s long-awaited Q1 2025 Earnings Report came out today, disappointing bullish expectations in several key areas. Nonetheless, user activity is still strong, with gross USDC balance increasing 49% QoQ.

Despite a positive day beforehand, the company’s stock valuation also fell over 3% in after-hours trading.

Coinbase’s Bearish Earnings Report

Coinbase, one of the world’s largest crypto exchanges, can point to a few growth trends to be optimistic about. For example, the SEC dropped its case against the firm, and it acquired the world’s largest crypto derivatives exchange.

The industry had bullish expectations for Coinbase’s Q1 2025 Earnings Report, but the actual results disappointed.

Overall, Coinbase’s Q1 revenue was almost $200 million short of the expected $2.2 billion, and its transaction revenue was $70 million under the anticipated amount.

Earnings per Share were a meagre $0.24 instead of $2.09, and subscription and services revenue also underperformed by $4.5 million.

coinbase earnings reports
Coinbase Q1 2025 Earnings Report. Source: Coinbase

Coinbase already displayed a few bearish signals before today’s Earnings Report. For example, scams have been targeting its users, leading to massive thefts.

The exchange’s stock price also fell 30% in Q1, its worst performance since the FTX collapse. Earlier today, its stock traded well on bullish report expectations but dropped substantially after hours.

Coinbase (COIN) Stock Performance
Coinbase (COIN) Stock Performance. Source: Google Finance

Despite this outwardly bearish report, Coinbase still highlighted a few positives. Trading volume did overperform expectations, albeit slightly; the exchange reported $393 billion instead of the anticipated $392.7 billion.

Additionally, the firm’s long-running stake in Circle is paying off, with gross USDC balances in Coinbase products increasing to $12.3 billion. This represents an impressive 49% gain quarter-over-quarter (QoQ).

Between these factors, the Deribit acquisition and regulatory breakthroughs, Coinbase maintains its optimism:

“Looking ahead, we’re focused on expanding real-world crypto utility, strengthening and extending our trading platform, and scaling the infrastructure that will power the financial system of the future. With growing regulatory clarity, we’re accelerating our vision towards economic freedom,” the company claimed.

Ultimately, it’s difficult to predict where the firm is heading from here. Although this Earnings Report underperformed expectations, Coinbase still has a lot of resources at its disposal.

Furthermore, Q1 showed positive developments for the exchange in terms of market expansion. Coinbase achieved regulatory licenses in both Argentina and India, further expanding its user base across the globe.

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Landon Manning
Landon Manning is a Journalist at BeInCrypto, covering a wide range of topics, including international regulation, blockchain technology, market analysis, and Bitcoin. Previously, Landon spent six years as a writer with Bitcoin Magazine and co-authored a Bitcoin maximalist newsletter with 30,000 subscribers. Landon holds a Bachelor of Arts in Philosophy from Sewanee: The University of the South.
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