Coinbase Q1 revenues up 40% YoY to $2 billion, while net income down

The decline in net profit is directly related with the crypto market downturn during the first quarter.

Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.

Coinbase reported $2 billion in total revenue for the first quarter, compared to $1.6 billion in the first quarter of 2024.

Meanwhile, the exchange posted $66 million in net income, compared to $1.2 billion, including unrealized gains of $737 million, during the same period last year.

Coinbase reported $930 million in adjusted EBITDA for the quarter, with adjusted net income reaching $527 million.

Subscription and services revenue rose 9% quarter-over-quarter to $698 million, reflecting increasing user demand for non-trading income sources.

Coinbase reported $9.9 billion in USD resources, including cash, cash equivalents, and USDC. Meanwhile, average assets under custody climbed by $25 billion over the quarter.

Derivatives volume

Coinbase processed $315 billion in institutional trading volume in the first quarter and reported a $25 billion increase in average assets under custody. 

Additionally, the exchange added 39 new perpetual contracts to its international exchange (INTX), pushing its global derivatives trading volume above $800 billion.

The move further cements Coinbase’s role as the platform of choice for active crypto traders seeking access to advanced financial instruments.

Coinbase will release its full 10-Q filing with the SEC on May 9, detailing reconciliations between GAAP and non-GAAP metrics used in its earnings presentation.

Institutional trends and stablecoin growth

Coinbase also revealed that 86% of surveyed institutional investors either held digital assets or planned to make allocations this year.

Stablecoins emerged as a major growth segment for Coinbase. The average USDC balance held in Coinbase products rose 49% quarter-over-quarter to $12 billion, with USDC revenue up 32%.

The total stablecoin balance on Base, Coinbase’s Ethereum Layer 2 network, climbed 12% to $4 billion, contributing to record demand as USDC market cap hit $60 billion.

Base itself saw a 16% quarter-over-quarter rise in transaction volume, reinforcing its position as the most active Ethereum L2 by user engagement.

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