Coinbase Q1 Report: See Why Revenue Missed Analysts’ Expectations Of $2.1 billion
Coinbase Q1:- The leading crypto exchange Coinbase has released it Quarterly report for Q1 2025. With a total quarter revenue of $2.00 Billion, the exchange has seen an increase of 24% year on year.
However, on quarter-on-quarter metric, the revenue has gone down by whopping 10%. Its revenue from transactions also went down by 19% Q/Q standing at $1.3 billion.
Overall, the revenue missed the Wall street estimates of $2.1 billion. The subsequent disappointment was reflected in its NASDAQ-lksted Stock (COIN) witnessing the decline of around 4%.
In last Quarter (Q4 2024), Coinbase did beat analysts’ revenue expectations by 22%. It reported revenues of $2.27 billion, up by 38% year on year.
Why Q1 Revenue Missed Analysts’ Expectations
Wall Street analysts projected Coinbase’s Q1 2025 revenue to be approximately $2.1 billion. They were anticipating a 28% year-over-year increase.
This estimate was driven by expectations of $1.39 billion in transaction revenue and $702 million in subscription and services revenue.
According to Coinbase Q1 report, the company has declared macroeconomic uncertainty as the reason for the decrease.
This includes shift in U.S. trade policy and geopolitical tensions led by US President Donald Trump. These tensions particularly the US Trump Tariffs came as a drag on market volatility and lessen consumer appetite for crypto trading.
This is indeed true. Bitcoin surged to a fresh all‑time high in January, but the gains proved short‑lived as crypto prices slid along with broader market. By the end of Q1, the total cryptocurrency market cap had fallen 19% from its year‑end level, landing at $2.7 trillion.
Against this backdrop, Coinbase’s Q1 transaction revenue came in at $1.3 billion – a 19% drop quarter‑over‑quarter.
Total spot trading volume fell 10% to $393.1 billion, though this still outpaced the global spot market’s 13% volume contraction over the same period.
Interestingly, its stablecoin revenue was up by 9% Q/Q, reflecting the increased revenue from its partner and stablecoin issuer Circle USDc.
Also Read: Crypto Market in Q1
What’s Next for the Giant
In Q2 2025, Coinbase expects the macro uncertainty, including around global trade policy, continuing to impacts consumer sentiment.
This may contribute to softer crypto trading markets and lower asset prices as it enters the second quarter.
For Q2 2025, Coinbase forecasts subscription and services revenue of $600–$680 million and $215–$315 million in sales and marketing including ~$15M in stock-based compensation.
According to Ryan Rasmussen, Head of Research at Bitwise Invest, “Coinbase is a Sleeping Giant.” He highlights its dominance as the custodian to the U.S. crypto ETF market with the most successful L2 network, Base.
Its web3 funding venture which supports early-stage crypto investments – Coinbase Ventures – is also making good progress.
Coinbase is a sleeping giant…
– Custodian to the U.S. crypto ETF market
– Most successful L2 (Base)
– Profit-sharing with Circle (USDC)
– Fast-growing subscriptions business (Coinbase One)
– Scaling staking at institutional level
– Acquired Deribit to dominate crypto… https://t.co/unnjtHtMRc— Ryan Rasmussen (@RasterlyRock) May 9, 2025
The recent acquisition of Deribit to dominate crypto derivatives further exemplifies its dominant status.
In Q1, it drove $803.6 billion in global derivatives trading volume as it continue to grow its market share with the recent acquisition.
Also Read: Coinbase Acquires Deribit
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