Coinbase Q1:- The leading crypto Exchange Cpinbase 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 4%.
Why Revenue Missed Analysts’ Expectations
According to Coinbase Q1 report, the company pointed to 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 consumer appetite for crypto trading.
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.” It is 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.
Check the Shareholder Letter
“In five years we want to be the #1 financial services app in the world.”
— Brian Armstrong when asked what Coinbase will look like in 5 years.
— Ryan Rasmussen (@RasterlyRock) May 8, 2025
The recent acquisition of Deribit to dominate crypto derivatives further exemplifies its dominant status. Notably in Q1, it drove $803.6 billion in global derivatives trading volume as it continue to grow its market share with the recent acquisition.
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