Coinbase Global, Inc . COIN reported first-quarter 2025 net operating earnings per share of $1.94, which beat the Zacks Consensus Estimate by 4.9%. The bottom line increased 17.6% year over year. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

The quarterly results benefited from higher consumer and institutional transaction revenues and crypto asset prices. Further, the continued growth of Coinbase One subscribers and improved adjusted EBITDA added to the upside. Escalating expenses were an offset.

Operational Update

Total trading volume increased 26% year over year to $393 million in the reported quarter. The Zacks Consensus Estimate was pegged at $388 million.

Total revenues of $2 billion missed the Zacks Consensus Estimate by 4.1%. The top line increased 24% 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 18.2% year over year to $1.3 billion in the quarter. The growth was due to an increase in consumer transaction revenues, institutional transaction revenues and other transaction revenues. The Zacks Consensus Estimate was pegged at $1.3 billion.

Total subscription and services revenues increased 36.3% year over year to $698.1 million in the reported quarter. The growth was driven by higher Stablecoin revenues. The Zacks Consensus Estimate was pegged at $698 million.

Adjusted EBITDA was $929.9 million in the reported quarter, which fell 8.3% from the year-ago quarter.  Total operating expenses increased 51.5% to $1.3 billion in the quarter due to higher sales and marketing and general and administrative expenses.

Financial Update

Coinbase exited the first quarter with cash and cash equivalents of $8.1 billion as of March 31, 2025, down 5.5% from 2024-end.

As of March 31, 2025, long-term debt increased 4.7% from 2024-end to $4.2 billion.

Shareholders' equity was $10.7 billion at first-quarter 2025-end, up 1.9% from 2024-end.

Net cash used in operating activities was $182.7 million in first-quarter 2025 versus net cash provided by operating activities of $411.5 million in the year-ago quarter.

Q2 2025 Outlook

Coinbase expects subscription and services revenues to be in the range of $600-$680 million. It expects growth in Stablecoin revenues to be offset by a decline in blockchain rewards revenues due to lower asset prices.

Coinbase expects technology and development and general and administrative expenses to be in the range of $700-$750 million, reflecting growth in variable expenses related to elevated trading volume as well as payroll taxes and headcount.

The company projects sales and marketing to be between $215 million and $315 million. Coinbase expects sales and marketing expenses to increase quarter over quarter to $235-$375 million due to potential variability in performance marketing and USDC assets in the product suite, which drives USDC rewards. Coinbase expects transaction expenses to be in the mid-to-high teens as a percentage of net revenues.