Coinbase Global Inc
For the period ended Mar 31, 2025. Filed May 8, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 8, 2025
COIN$134.76-1.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-10-30.
0001679788-24-000187
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-08.
0001679788-25-000089
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 221 previous paragraphs and 157 current paragraphs.
43 unchanged; 58 reworded; 51 added; 113 removed; 7 previous and 5 current paragraphs rearranged.
Tables are not compared: 21 previous and 21 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (51)
Current report
During the first quarter of 2025, we continued to make progress against our mission by launching advanced trading tools, scaling derivatives globally, and growing our institutional and consumer user base. We also expanded access to financial services and implemented key infrastructure updates by upgrading Base to support the next generation of onchain apps and driving stablecoin adoption at scale, both of which are key to expanding global crypto usage.
Current report
For the three months ended March 31, 2025, our net revenue was $2.0 billion, including $1.3 billion in transaction revenue and $0.7 billion in subscription and services revenue. For the three months ended March 31, 2024, our net revenue was $1.6 billion, including $1.1 billion in transaction revenue and $0.5 billion in subscription and services revenue.
Current report
For the three months ended March 31, 2025, our net income was $65.6 million and Adjusted EBITDA was $0.9 billion. For the three months ended March 31, 2024, our net income was $1.2 billion and Adjusted EBITDA was $1.0 billion.
Current report
(2)Represents Assets on Platform as of March 31, 2025 and 2024.
Current report
Assets on Platform
Current report
The following table sets forth the value of AOP by asset (in thousands, except percentages):
Current report
(1)Includes various other crypto asset balances, none of which individually represented more than 5% of total AOP.
Current report
AOP at March 31, 2025 remained relatively flat as compared to March 31, 2024, reflecting increases of $37.9 billion due to higher Bitcoin units on platform and $24.7 billion due to increases in the price of Bitcoin, largely offset by the impact of net decreases in the prices of Ethereum and other crypto assets. Separately, we attribute the growth in USDC AOP primarily to our USDC rewards program, combined with deeper integration of USDC across our products.
Current report
(1)Includes various other crypto asset balances, none of which individually represented more than 10% of our total Trading Volume.
Current report
•an increase in institutional transaction revenue primarily driven by growth in derivatives trading volume on our international exchange. Separately, the impact of a 23% increase in institutional Trading Volume was offset by a lower average blended fee rate resulting primarily from reduced fees at higher volumes; and
Current report
•an increase in other transaction revenue primarily driven by higher revenue from instant transfer withdrawals.
Current report
The percentage of transaction revenue from trading on our platform broken down by crypto asset was as follows:
Current report
(1)Includes various other crypto asset balances, none of which individually represented more than 10% of our total transaction revenue.
Current report
•increases in stablecoin revenue of $105.1 million due to higher average USDC balances held in Coinbase products 2, on which we earn the vast majority of the interest on the associated reserves, and $67.9 million due to higher average USDC off-platform balances, on which we earn varying percentages depending on where the USDC is held. This revenue growth was partially offset by a decrease of $68.5 million due to lower average interest rates, which declined 96 basis points;
Current report
2 Includes corporate USDC balances and USDC held on behalf of customers in eligible Coinbase products.
Current report
•an increase in blockchain rewards of $20.5 million due to changes in average crypto asset prices, and $13.9 million due to changes in reward rates primarily for Solana and Ethereum; and
Current report
Other revenue increased for the three months ended March 31, 2025 as compared to 2024, primarily reflecting an increase of $35.2 million due to higher average cash and cash equivalents balances, partially offset by lower average interest rates earned on these balances, which declined 77 basis points.
Current report
•higher blockchain rewards fees, which rose with blockchain rewards revenue, partially offset by the impact of adjustments to our fee structures;
Current report
•an increase in payment processing fees of $18.7 million, due to 26% Trading Volume growth and expanding international payment methods. Account verification fees also rose with more new users verified;
Current report
•higher transaction rebates and commissions, primarily reflecting an increase in rebates earned by institutional customers providing liquidity on our international exchange, driven by growth in volume; and
Current report
•an increase in transaction reversal losses primarily driven by higher transaction volume; offset in part by
Current report
•a decrease in blockchain transaction fees primarily due to lower average gas and asset prices for Ethereum.
Current report
There were no material changes to note within other.
Current report
Technology and development expenses decreased for the three months ended March 31, 2025 as compared to 2024, primarily due to:
Current report
•a decrease in personnel-related expenses reflecting:
Current report
◦$17.3 million higher capitalization of costs of internally developed technology; and
Current report
◦a $10.3 million decrease due to updates made in late 2024 to our vesting schedule for new awards to achieve linear expense recognition; offset in part by
Current report
◦$15.6 million higher personnel-related expenses due to higher average headcount.
Current report
There were no material changes to note within amortization, depreciation, and impairment or other.
Current report
3 Comprises USDC held on behalf of customers in eligible Coinbase products.
Current report
(1)Excludes personnel-related and professional services expenses.
Current report
•an increase in professional services primarily due to higher costs of legal advisory services; and
Current report
•a $27.8 million increase in policy spend within other as we increased our crypto advocacy efforts, offset in part by a decrease of $20.1 million in legal costs. The remaining variance in other was due to increases across various expenses, with no material changes to note.
Current report
Changes in losses (gains) on crypto assets held for operations, net resulted primarily from holding these assets during a period of declining crypto asset prices in 2025 as compared to a period of rising crypto asset prices in 2024. Though gross inflows and outflows of these assets were both $0.3 billion during each of the three months ended March 31, 2025 and 2024, respectively, losses and gains on changes in the fair value of the assets were limited as these assets are converted to cash or used for expenses nearly immediately after receipt.
Current report
There were no material changes to note within Other operating (income) expense, net.
Current report
Other expense (income), net
Current report
Other expense (income), net changed for the three months ended March 31, 2025 as compared to 2024, primarily reflecting changes in the prices of crypto assets underlying certain of our investments, as prices increased in 2024 and decreased in 2025. There were no material changes to note within other.
Current report
Provision for income taxes
Current report
•provision for income taxes;
Current report
(1)See Note 13. Other expense (income), netof the Notes to our Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for additional details.
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Removed paragraphs (113)
Previous report
During the third quarter of 2024, we continued to make progress against our goals of driving revenue growth, crypto utility, and regulatory clarity. We showed progress in diversifying our revenue and driving crypto utility through products like derivatives, international expansion, custody, and deeper integration of USDC into the cryptoeconomy. For the three and nine months ended September 30, 2024 we generated $1.1 billion and $4.1 billion of Net revenue, respectively, and $75.5 million and $1.3 billion in Net income, respectively. For the remainder of the year, we believe that we are well-positioned to drive revenue growth across all macroeconomic environments, and we remain committed to advancing regulatory clarity.
Previous report
(1)USDT is a stablecoin issued by Tether Operations Limited.
Previous report
(2)No crypto assets other than those shown in this table individually represented more than 10% of our Trading Volume or our Transaction revenue, as applicable.
Previous report
Components of Results of Operations
Previous report
We generate revenue from transactions, subscription and services, and other activities. The vast majority of our total revenue is generated in the U.S., which is based on the domicile of the customers.
Previous report
Net revenue
Previous report
Transaction revenue is generated primarily from transaction fees on consumer and institutional trades that occur on our platform. We also earn other transaction revenue, which primarily consists of sequencer fees from Base users and fees charged for payment-related transactions. Transaction revenue is recognized at the time the transaction is processed.
Previous report
We provide a trade matching service for users to buy, sell, or convert crypto assets through our platform. This trading activity is the primary source of our transaction revenue and core to the service we offer. Transaction revenue is generated primarily from transaction fees applied to spot trades that are executed by both consumer and institutional customers on our platform. The transaction fee earned is based on the price and quantity of the crypto asset that is bought, sold, or converted. Transaction revenue is directly correlated with Trading Volume, which is driven by both the number of spot trade transactions processed on our platform and the crypto asset price at the time of execution. Institutional customers incur lower fees per transaction than consumer customers and, as a result, the impact of changes in consumer Trading Volume on transaction revenue is more pronounced than the impact of changes in institutional Trading Volume. Within consumer transaction revenue, advanced trading offers customers a wider range of tools and order types with prices varying based on volume, while Simple trading offers a streamlined interface and fixed price quotes. Simple trading fees are generally higher than those on Advanced trading. As a result of all of these factors, changes in mix between types of transactions will affect transaction revenue. In addition, changes in our pricing will affect transaction revenue. See the section titled “—Key Business Metrics—Trading Volume” above for more information on our Trading Volume metric.
Previous report
Subscription and services revenue primarily consists of:
Previous report
•Stablecoin revenue: We derive stablecoin revenue from our arrangement with the issuer of USDC. We earn a pro rata portion of income earned on USDC reserves based on the amount of USDC held on each respective party’s platform, and from the distribution and usage of USDC after certain expenses. Income derived by us from this arrangement is dependent on various factors, including the balance of USDC on our platform, the total market capitalization of USDC, which is the total amount of USDC in circulation, and the prevailing interest rate environment.
Previous report
•Blockchain rewards: We operate a proof-of-stake service that enables customers to stake eligible crypto assets and validate transactions on certain blockchain networks. This allows customers to earn rewards from the networks while maintaining ownership of their assets. Revenue is measured based on the number of tokens received and the fair value of the token at contract inception.
Previous report
•Custodial fee revenue: We earn custodial fee revenue based on a percentage of the daily value of crypto assets held under custody within cold storage solutions for our Prime customers. The value of crypto assets held under custody is driven by the quantity, price, and type of crypto asset. Our custodial fee revenue is further dependent on the fee rates we charge to our customers.
Previous report
•Other subscription and services revenue primarily comprises revenue from Coinbase One, developer product revenue, including items such as delegation, participation, and infrastructure services, and revenue from other subscription licenses.
Previous report
Operating expenses consist of Transaction expense, Technology and development, Sales and marketing, General and administrative, Gains on crypto assets held for operations, net, Crypto asset impairment, net, Restructuring, and Other operating (income) expense, net. Personnel-related expense in all of these categories includes employee cash, stock-based compensation expense, and other employee benefits.
Previous report
Transaction expense includes costs directly associated with revenues. For transaction revenues, these expenses include costs to operate our platform, process crypto asset trades, perform wallet services, transaction rebates and incentives earned by customers, and transaction reversal losses. For subscription and services revenues, the primary expenses are the rewards distributed to users for staking their assets and can be impacted by the fees we charge. Fixed-fee costs are expensed over the term of the contract and transaction-level costs are expensed as incurred. Transaction expense also includes gains and losses from remeasurement of the fair value of crypto asset borrowing and collateral-related assets and liabilities, which are by their nature offsetting and net to an immaterial amount.
Previous report
Our transaction expenses as a percentage of revenue will vary depending on the composition of our revenue. For example, if interest income and stablecoin revenue increase as a percentage of net revenue, transaction expenses as a percentage of net revenue will decrease as there are no transaction expenses directly attributed to these revenues. Conversely, if blockchain rewards increase as a percentage of net revenue, transaction expenses as a percentage of net revenue will increase since the majority of blockchain rewards revenue is distributed to the customer.
Previous report
Technology and development expenses comprise mainly personnel-related expenses incurred in operating, maintaining, and enhancing our platform and in developing new products and services. These costs also include website hosting and infrastructure expenses, and the amortization of internally developed and acquired developed technology. Certain costs of developing new products and services are capitalized to software and equipment, net included within Other non-current assets inour Condensed Consolidated Balance Sheets.
Previous report
Sales and marketing expenses primarily include personnel-related expenses, marketing program costs, USDC rewards, and costs related to customer acquisition.
Previous report
General and administrative expenses include personnel-related expenses incurred to support our business, including executive, customer support, compliance, finance, human resources, legal, and other support operations. These expenses also include professional services, policy spend, and software subscriptions for support services.
Previous report
Gains on crypto assets held for operations, net, reflect changes in the fair value of crypto assets received as a form of payment and nearly immediately converted to cash or used timely to fulfill corporate expenses. In addition to crypto asset price changes, these gains and losses are influenced by the volume and mix of crypto assets received and used, and the timing of the turnover of these crypto assets.
Previous report
Crypto asset impairment, net
Previous report
Crypto asset impairment, net represents gross impairments recorded on crypto assets held, net of subsequent realized gains on the sale and disposal of previously impaired crypto assets held. Beginning in January 2024, we adopted ASU 2023-08, and no longer record crypto asset impairments.
Previous report
Restructuring
Previous report
Restructuring expenses comprise separation pay, stock-based compensation, and other personnel costs related to reductions in our headcount.
Previous report
Other operating (income) expense, net includes fair value gains and losses related to derivatives as well as platform-related incidents. The value of derivatives fluctuates with market conditions.
Previous report
Interest expense on debt includes coupon interest expense, as well as amortization of debt discounts and debt issuance costs.
Previous report
Other income, net
Previous report
Other income, net includes the following items:
Previous report
•realized and unrealized gains and losses on foreign currency exchange;
Previous report
•realized and unrealized fair value gains and losses on strategic equity investments; and
Previous report
•net gains on the repurchase of certain of our long-term debt.
Previous report
Because the majority of these components are generally variable based on changes in market conditions, they can vary widely from period to period. The income and expenses recognized in this line item are not part of our core operating activities.
Previous report
(Benefit from) provision for income taxes
Previous report
(Benefit from) provision for income taxes includes income taxes related to foreign jurisdictions and U.S. federal and state income taxes.
Previous report
Revenue
Previous report
Transaction revenue
Previous report
(1)Prior period amounts were reclassified to conform to current period presentation. See Note 5. Revenue of the Notes to our Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for additional details.
Previous report
•an increase in institutional transaction revenue of $20.9 million and $71.5 million due to 132% and 123% higher institutional Trading Volume, and an increase of $9.5 million and $49.5 million as a result of a higher average blended spot trading fee rate primarily due to increased usage of our Prime Brokerage product; and
Previous report
•an increase in other transaction revenue for the nine months ended September 30, 2024, primarily due to the launch of Base in the third quarter of 2023.
Previous report
Subscription and services revenue
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Reworded paragraphs (58)
Previous wording
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our Condensed Consolidated Financial Statements and the accompanying notes thereto included elsewhere in this Quarterly Report on Form 10-Q. The following discussion and analysis contains forward-looking statements that involve risks and uncertainties, as well as assumptions that, if they never materialize or prove incorrect, could cause our results to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause or contribute to these differences include, but are not limited to, those identified below and those discussed in the section titled Risk Factors in Part II, Item 1A of this Quarterly Report on Form 10-Q. Unless otherwise expressly stated or the context otherwise requires, references to “we,” “our,” “us,” “the Company,” and “Coinbase” refer to Coinbase Global, Inc. and its consolidated subsidiaries. For all narrative provided in this Item 2, two numbers presented consecutively represent figures for the three and nine months ended September 30, 2024 as compared to the corresponding periods in 2023, respectively, unless otherwise noted.
Current wording
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our Condensed Consolidated Financial Statements and the accompanying notes thereto included elsewhere in this Quarterly Report on Form 10-Qand our Annual Report on Form 10-K for the year ended December 31, 2024 (the “Annual Report”). The following discussion and analysis contains forward-looking statements that involve risks and uncertainties, as well as assumptions that, if they never materialize or prove incorrect, could cause our results to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause or contribute to these differences include, but are not limited to, those identified below and those discussed in the section titled Risk Factors in Part II, Item 1A of this Quarterly Report on Form 10-Q. Unless otherwise expressly stated or the context otherwise requires, references to “we,” “our,” “us,” “the Company,” and “Coinbase” refer to Coinbase Global, Inc. and its consolidated subsidiaries. For all narrative provided in this Item 2, two numbers presented consecutively represent figures for the three months ended March 31, 2025 as compared to the corresponding period in 2024, respectively, unless otherwise noted.
Previous wording
In order to achieve our goal of positive Adjusted EBITDA for the remainder of 2024, we are committed to being adaptable and responsive tooverall macro market conditions and revenue opportunities. We plan to dynamically adjust our expense base, increasing or decreasing it as needed, especially with respect to certain variable expenses. In the fourth quarter of 2024, we expect technology and development and general and administrative expenses to be roughly in line with those of the third quarter. Additionally, we expect sales and marketing expenses to grow, as compared to the third quarter of 2024, primarily due to expected higher USDC rewards expense and brand spend.
Current wording
Despite multiple Federal Funds Rate decreases in late 2024, future interest rate decreases are not certain. If interest rates continue to decline, they may materially impact our subscription and services and other revenue. We plan to dynamically adjust our expense base in order to be responsive to market conditions and revenue opportunities, increasing or decreasing it as needed, especially with respect to certain variable expenses. In the second quarter of 2025, we expect technology and development and general and administrative expenses to decline as compared to the first quarter of 2025, driven by lower variable customer support expenses and seasonally lower payroll taxes. Additionally, we expect sales and marketing expenses to grow modestly, as compared to the first quarter of 2025, primarily due to expected higher USDC rewards expense and brand marketing spend seasonality.
Previous wording
(1)See the section titled “Non-GAAP Financial Measure” below for a reconciliation of Net income (loss) to Adjusted EBITDA and an explanation for why we consider Adjusted EBITDA to be a helpful metric for investors.
Current wording
(3)See the section titled “Non-GAAP Financial Measure” below for a reconciliation of net income to Adjusted EBITDA and an explanation for why we consider Adjusted EBITDA to be a helpful metric for investors.
Previous wording
We define a Monthly Transacting User (“MTU”) as a consumer who actively or passively transacts in one or more products on our platform at least once during the rolling 28-day period ending on the date of measurement. Quarterly MTUs are the average of each month’s MTUs in each respective quarter. Revenue-generating transactions include active transactions such as buying or selling crypto assets or passive transactions such as earning a staking reward. MTUs also engage in transactions that are non-revenue generating such as send and receive. MTUs may overstate the number of unique consumers due to differences in product architecture or user behavior.
Current wording
We define a Monthly Transacting User (“MTU”) as a consumer who actively or passively transacts in one or more products on our platform at least once during the rolling 28-day period ending on the date of measurement. MTUs engage in transactions that generate both transaction revenue and subscription and services revenue. Revenue-generating transactions include active transactions, such as buying or selling crypto assets or passive transactions such as earning staking rewards and USDC rewards. MTUs also engage in transactions that are non-revenue generating, such as consumers sending and receiving crypto assets between wallets and off-platform accounts on a non-expedited basis. MTUs may overstate the number of unique consumers due to differences in product architecture or user behavior.
Previous wording
MTUs increasedfor the three and nine months ended September 30, 2024 as compared to 2023, primarily due to a 0.6 million and 0.8 million increase in trading users, influenced by overall crypto market sentiment and activity and higher average crypto asset prices. Additionally, for the three months ended comparative period, we saw growth in users purchasing USDC and participating in USDC rewards programs, while for the nine months ended comparative period, the increase in trading users was partially offset by a decrease in staking users as a result of updates we made to our staking service.
Current wording
MTUs increased for the three months ended March 31, 2025 as compared to 2024, primarily due to an increase in trading users, influenced by overall crypto market sentiment and activity, including higher average prices for certain crypto assets.
Previous wording
Crypto assets held for investment, net
Current wording
We define Assets on Platform (“AOP”) as the total United States (“U.S.”) dollar equivalent value of USDC and crypto assets held or managed on behalf of customers in digital wallets on our platform, including our custody services but excluding assets for which the customer holds full or partial keys, calculated based on the market price on the date of measurement. AOP demonstrates the scale of balances held across our suite of products and services, the trust customers place in us to securely store their assets, and the underlying growth of the cryptoeconomy. AOP also represents a monetization opportunity through our products and services, including from trading and the adoption and use of USDC, staking, custody, and Prime Financing, when customers use these assets to engage with these products and services.
Previous wording
We define Trading Volume as the total United States (“U.S.”) dollar equivalent value of spot matched trades transacted between a buyer and seller through our platform during the period of measurement. Trading Volume represents the product of the quantity of assets transacted and the trade price at the time the transaction was executed. As trading activity directly impacts transaction revenue, we believe this measure is a reflection of liquidity on our order books, trading health, and the underlying growth of the cryptoeconomy.
Current wording
We define Trading Volume as the total U.S. dollar equivalent value of spot matched trades transacted between a buyer and seller through our platform during the period of measurement. Trading Volume does not include derivatives volume on our platform or trades executed on third-party venues. Trading Volume represents the product of the quantity of assets transacted and the trade price at the time the transaction was executed. As trading activity directly impacts transaction revenue, we believe this measure is a reflection of liquidity on our order books, trading health, and the underlying growth of the cryptoeconomy. Institutions incur lower fees per transaction than consumers and, as a result, the impact of changes in consumer Trading Volume on transaction revenue is more pronounced than the impact of changes in institutional Trading Volume.
Previous wording
Generally, Trading Volume on our platform is primarily influenced by overall market dynamics, namely the price of crypto assets, crypto asset volatility, macroeconomic conditions, and by our share of total crypto market spot trading volume. In periods of high crypto asset prices and crypto asset volatility, we have experienced correspondingly high levels of Trading Volume on our platform.
Current wording
Generally, Trading Volume on our platform is primarily influenced by overall market dynamics, namely the price of crypto assets, crypto asset volatility, and macroeconomic conditions, and by our share of total crypto market spot trading volume. In periods of high crypto asset prices and crypto asset volatility, we have experienced correspondingly high levels of Trading Volume.
Previous wording
For the three and nine months ended September 30, 2024 as compared to 2023, Trading Volume increased reflectingan increase in both the total market and our market share in the U.S., where our business is concentrated:
Current wording
For the three months ended March 31, 2025 as compared to 2024, Trading Volume increased reflecting an increase in both the total market and our market share in the U.S., where our business is concentrated:
Previous wording
•Total market — Crypto Asset Volatility 1 increased 78% and 36% and total crypto market capitalization increased 95% and 102%. These two macro inputs have historically been highly correlated with Trading Volume and are typically influenced by overall crypto market sentiment, activity in the crypto market, and changes in average crypto asset prices; and
Current wording
•Total market — Crypto Asset Volatility 1 increased 15% and average total crypto market capitalization increased 56%. These two macro inputs have historically been highly correlated with Trading Volume and are typically influenced by overall crypto market sentiment, activity in the crypto market, and changes in average crypto asset prices; and
Previous wording
•Market share — Trading Volume growth outpaced the 109% and 87%growth in overall U.S. spot market trading volume, as we were able to capture a larger portion of the trading activity due to our competitive position and product strategy.
Current wording
•Market share — Trading Volume growth outpaced the 17% growth in overall U.S. spot market trading volume, as we were able to capture a larger portion of the trading activity due to our competitive position and product strategy.
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The following table summarizes the historical Condensed Consolidated Statements of Operations data (in thousands) and each component as a percentage of total revenue:
Current wording
The following table presents the Condensed Consolidated Statements of Operations (in thousands), as well as each component as a percentage of total revenue:
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(3)Figures presented above may not sum precisely due to rounding.
Current wording
(1)Figures presented above may not sum precisely due to rounding.
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Comparison of the three and nine months ended September 30, 2024 and 2023
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Comparison of the three months ended March 31, 2025 and 2024
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For the three and nine months ended September 30, 2024 we generated 86% and 84%, respectively, of total revenue in the U.S. For the three and nine months ended September 30, 2023 we generated 90% and 89%, respectively, of total revenue in the U.S. No other country accounted for more than 10% of total revenue during the periods presented. International revenue comprised mainly transaction revenue in all periods presented.
Current wording
For the three months ended March 31, 2025 and 2024 we generated 84% and 83%, respectively, of total revenue in the U.S. No other country accounted for more than 10% of total revenue during the periods presented. International revenue comprised mainly transaction revenue in both periods presented.
Previous wording
Transaction revenue increased for the three and nine months ended September 30, 2024 as compared to 2023, due to:
Current wording
Transaction revenue increased for the three months ended March 31, 2025 as compared to 2024, due to:
Previous wording
•an increase in consumer transaction revenue of $478.2 million and $1.5 billion due to a 209% and 176% increase in consumer Trading Volume. This increase was offset in part by a decrease of $241.9 million and $283.4 million attributed to a lower average blended fee rate, primarily due to changes in the mix of Trading Volume from Simple to Advanced trading;
Current wording
•an increase in consumer transaction revenue of $366.5 million due to a 39% increase in consumer Trading Volume. This increase was offset in part by a decrease of $206.2 million attributed to a lower average blended fee rate, primarily due to changes in the mix of Trading Volume from Simple to Advanced trading, as well as growth in Trading Volume from Coinbase One users.
Previous wording
Subscription and services revenue increased for the three and nine months ended September 30, 2024 as compared to 2023, due to:
Current wording
Subscription and services revenue increased for the three months ended March 31, 2025 as compared to 2024, primarily due to:
Previous wording
•an increase in other subscription and services revenue, largely due to growth of $20.3 million and $57.8 million in Coinbase One revenue, as the number of paid subscribers grew driven by positive market conditions and improvements to our product offerings. In addition, for the nine months ended comparative period, we saw an increase in revenue from developer products driven largely by higher average crypto asset prices.
Current wording
•an increase in other subscription and services revenue, primarily due to growth of Coinbase One, reflecting a higher number of paid subscribers.
Previous wording
•Interest and finance fee income: We earn interest on customer custodial funds held at third-party depository institutions, which is influenced by Trading Volume and prevailing interest rates. As consumer Trading Volume increases, customer custodial funds on our platform also tend to increase. Additionally, we earn interest and finance fee income from loans issued to institutional customers through Prime Financing. The amount earned depends on the total loans issued and the contractual rate.
Current wording
There were no material changes to note within interest and finance fee income.
Previous wording
Certain prior period amounts have been reclassified to conform with the current period presentation.
Current wording
Certain prior period amounts have been reclassified to conform to the current period presentation.
Previous wording
Transaction expense increased for the three and nine months ended September 30, 2024 as compared to 2023 primarily due to higher blockchain rewards fees, which rose generally in line with blockchain rewards revenue. For the nine months ended comparative period, transaction expense also increased due to:
Current wording
Transaction expense increased for the three months ended March 31, 2025 as compared to 2024, primarily due to:
Previous wording
•an increase in personnel-related expenses primarily reflecting higher stock-based compensation expense of $28.0 million and $82.0 million as a result of the 2023 annual employee equity awards being granted at a lower stock price as compared to the 2024 annual employee equity awards, offset in part by the roll-off of non-recurring multi-year stock-based compensation awards. Further, personnel-related expenses increased $12.5 million and $28.4 million due to higher average headcount; and
Current wording
◦$20.5 million lower stock-based compensation expense attributed to the roll-off of non-recurring multi-year stock-based compensation awards;
Previous wording
Sales and marketing expenses increased for the three and nine months ended September 30, 2024 as compared to 2023, due to:
Current wording
Sales and marketing expenses increased for the three months ended March 31, 2025 as compared to 2024, primarily due to:
Previous wording
•an increase in marketing program expenses due to higher digital advertising spend; and
Current wording
•an increase in marketing program expenses due to higher digital advertising spend as we capitalized on market momentum during the quarter; and
Previous wording
•an increase in USDC rewards payouts of $27.7 million and $82.1 million due to higher reward rates offered to customers in an effort to enhance customer retention and platform engagement, with the remainder primarily due to higher on-platform USDC balances.
Current wording
•an increase in USDC rewards payouts of $53.2 million primarily due to growth in average customer USDC balances held in Coinbase products 3, with the remainder primarily due to higher reward rates offered to customers in an effort to enhance customer acquisition, retention, and platform engagement.
Previous wording
General and administrative expenses increased for the three and nine months ended September 30, 2024 as compared to 2023, due to:
Current wording
General and administrative expenses increased for the three months ended March 31, 2025 as compared to 2024, primarily due to:
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•an increase in customer support costs as a result of increased capacity needs. Our capacity needs typically increase in periods following higher Trading Volumes; and
Current wording
•an increase in customer support costs as a result of increased capacity needs. Our capacity needs typically increase in periods following higher Trading Volumes;
Previous wording
Losses (gains) on crypto assets held for investment, net during the three and nine months ended September 30, 2024 were primarily due to the remeasurement of the fair value of crypto assets held, mainly Bitcoin and Ethereum, during each period presented, where crypto asset prices decreased and increased, respectively.
Current wording
Losses on crypto assets held for investment, net during the three months ended March 31, 2025 were primarily due to fair value remeasurement of these assets, mainly Bitcoin and Ethereum, as asset prices decreased, offset in part by increased investment purchases during the period. Gains on crypto assets held for investment, net during the three months ended March 31, 2024 were primarily due to fair value remeasurement of these assets, mainly Bitcoin and Ethereum, during a period when the asset prices increased.
Previous wording
For the three months ended September 30, 2024 as compared to 2023, the change in (Benefit from) provision for income taxes was primarily due to tax benefits from stock-based compensation. For the nine months ended September 30, 2024 as compared to 2023, the increase in provision for income taxes was primarily due to higher pretax income, partially offset by tax benefits from stock-based compensation.
Current wording
For the three months ended March 31, 2025 as compared to 2024, the decrease in provision for income taxes was primarily due to lower pretax income, partially offset by lower tax benefits from stock-based compensation.
Previous wording
•We believe it is useful to exclude certain items that we do not consider to be normal, recurring, cash operating expenses and therefore, not reflective of our ongoing business operations. For example, we exclude: (i) other (income) expense, net, as the income and expenses recognized in this line item are not part of our core operating activities and are considered non-operating activities under GAAP, (ii) gains and losses on crypto assets held for investment (post-adoption of ASU No. 2023-08) because such investments are considered long-term holdings, we do not plan on engaging in regular trading of crypto assets, and, as an operating company, our investing activities in crypto are not part of our revenue generating activities, which are based on transactions on our platform and the sales of subscriptions and services, and (iii) the impact of our restructurings in 2022 and 2023, which are not related to our normal business operations.
Current wording
•We believe it is useful to exclude certain items that we do not consider to be normal, recurring, cash operating expenses and therefore, not reflective of our ongoing business operations. For example, we exclude: (i) other (income) expense, net, as the income and expenses recognized in this line item are not part of our core operating activities and are considered non-operating activities under GAAP and (ii) gains and losses on crypto assets held for investment because such investments are considered primarily long-term holdings. We do not plan on engaging in regular trading of crypto assets, and, as an operating company, our investing activities in crypto are not part of our revenue generating activities, which are based on transactions on our platform and the sales of subscriptions and services.
Previous wording
•We believe Adjusted EBITDA is useful to measure a company’s operating performance without regard to items such as stock-based compensation expense, depreciation and amortization expense, interest expense, other (income) expense, net, restructurings, and benefit from or provision for income taxes that can vary substantially from company to company depending upon their financing, capital structures, and the method by which assets were acquired.
Current wording
•We believe Adjusted EBITDA is useful to measure a company’s operating performance without regard to items such as stock-based compensation expense, depreciation and amortization expense, interest expense, other expense (income), net, and benefit from or provision for income taxes that can vary substantially from company to company depending upon their financing, capital structures, and the method by which assets were acquired.
Previous wording
•depreciation and intangible assets amortization expense and, although these are non-cash expenses, the assets being depreciated and amortized may have to be replaced in the future;
Current wording
•depreciation and amortization expense and, although these are non-cash expenses, the assets being depreciated and amortized may have to be replaced in the future;
Previous wording
•net gains or losses on our crypto assets held for investment, net, after the adoption of ASU 2023-08;
Current wording
•net gains or losses on our crypto assets held for investment; and
Previous wording
•other income, net, which represents foreign exchange gains or losses, gains or losses on strategic investments, net gains on the repurchase of certain of our long-term debt and other non-operating income and expense activity;
Current wording
•other expense (income), net, which represents losses or gains on other financial instruments, and other non-operating income and expense activity.
Previous wording
In addition, other companies, including companies in our industry, may calculate Adjusted EBITDA differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our disclosure of Adjusted EBITDA as a tool for comparison. A reconciliation is provided below for Adjusted EBITDA to Net income (loss), the most directly comparable financial measure stated in accordance with GAAP. Investors are encouraged to review the related GAAP financial measure and the reconciliation of Adjusted EBITDA to Net income (loss), and not to rely on any single financial measure to evaluate our business.
Current wording
In addition, other companies, including companies in our industry, may calculate Adjusted EBITDA differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our disclosure of Adjusted EBITDA as a tool for comparison. A reconciliation is provided below for Adjusted EBITDA to net income, the most directly comparable financial measure stated in accordance with GAAP. Investors are encouraged to review the related GAAP financial measure and the reconciliation of Adjusted EBITDA to net income, and not to rely on any single financial measure to evaluate our business.
Previous wording
The following table provides a reconciliation of Net income (loss) to Adjusted EBITDA. The prior period comparative reconciliation has been updated to conform to the current period presentation (in thousands):
Current wording
The following table provides a reconciliation of net income to Adjusted EBITDA (in thousands):
Previous wording
There have been no material changes to our liquidity and capital resources from those presented in our Annual Report on Form 10-K for the year ended December 31, 2023, other than those described below.
Current wording
There have been no material changes to our liquidity and capital resources from those presented in the Annual Report, other than those described below.
Previous wording
Other revenue includes interest income earned on our corporate cash and cash equivalents.
Current wording
Cash and cash equivalents and USDC
Previous wording
As of September 30, 2024 and December 31, 2023, our cash and cash equivalents, restricted cash and cash equivalents, and USDC balances consisted of the following (in thousands):
Current wording
Our cash and cash equivalents and USDC balances consisted of the following (in thousands):
Showing the first 40 of 58 pairs. Open the source sections for the rest.
Rearranged current paragraphs (5)
Current report — wording carried from elsewhere
(1)Represents quarterly MTUs, which are derived from the average of each month’s MTUs in each respective quarter.
Current report — wording carried from elsewhere
There were no material changes to note within personnel-related.
Current report — wording carried from elsewhere
Losses (gains) on crypto assets held for operations, net
Current report — wording carried from elsewhere
Long-term debt and other contractual obligations
Current report — wording carried from elsewhere
Our business model does not expose us to liquidity risk if we have excessive redemptions or withdrawals from customers. As of March 31, 2025, we have not experienced excessive redemptions or withdrawals, or prolonged suspended redemptions or withdrawals, of crypto assets to date.
Rearranged previous paragraphs (7)
Previous report — wording carried elsewhere
Gains on crypto assets held for operations, net
Previous report — wording carried elsewhere
Losses (gains) on crypto assets held for investment, net generally comprise fair value remeasurement gains and losses from our crypto assets held for investment. These investments are considered long-term holdings, we do not plan on engaging in regular trading of crypto assets, and, as an operating company, our investing activities in crypto are not part of our revenue generating activities, which are based on transactions on our platform and the sales of subscriptions and services.
Previous report — wording carried elsewhere
(1)Percentage of total revenue. Figures presented above may not sum precisely due to rounding.
Previous report — wording carried elsewhere
Gains on crypto assets held for operations, net
Previous report — wording carried elsewhere
Losses (gains) on crypto assets held for investment, net
Previous report — wording carried elsewhere
Crypto assets held for operations, net
Previous report — wording carried elsewhere
•a $91.6 million increase in marketing program expenses due to higher digital advertising spend; and