🌐 What the Company Does
Coinbase operates one of the largest cryptocurrency trading platforms in the United States. It allows individuals and institutions to buy, sell, store, and manage digital assets such as Bitcoin and Ethereum.
- Retail Trading: Individual users trade crypto through the Coinbase app or website.
- Institutional Services: Hedge funds and corporations use Coinbase for trading and custody.
- Custody: Secure storage of digital assets for large clients.
- Subscription & Services: Revenue from staking, custody, and blockchain-related services.
Most revenue still comes from transaction fees, meaning financial performance depends heavily on crypto market activity.
📊 Financial Highlights
- Revenue (FY2025): $7.18 billion
- Net Income (FY2025): $1.26 billion
- Diluted EPS: $4.45
- Cash & Cash Equivalents: $11.3 billion
- Total Cash (including restricted & custodial): $16.9 billion
Profitability improved significantly compared to the prior downturn period. Operating margins remained positive in FY2025, even after the unusually strong FY2024 cycle.
Operating cash flow remained positive, indicating the core business generated cash.
⚠️ Key Risks
- Regulatory Risk: Ongoing investigations and enforcement actions related to staking and crypto listings.
- Legal Proceedings: Securities-related litigation and state regulatory actions remain unresolved.
- Custody Risk: Coinbase safeguards $376.1 billion in customer crypto assets. Security failures could create liability.
- Market Dependence: Revenue is highly sensitive to crypto prices and trading volume.
- Evolving Tax Rules: Changing U.S. and international crypto tax regulations may increase compliance costs.
These risks are specific to Coinbase’s role as a regulated crypto platform.
📈 MD&A Highlights
- Management emphasized strong liquidity and sufficient cash to meet working capital and capital expenditure needs.
- Fair value gains on derivatives positively impacted 2025 results.
- Stock-based compensation totaled $839.4 million.
- The Board expanded the share repurchase program to $4.0 billion in January 2026.
Management highlighted profitability, strong liquidity, and active capital allocation while operating in a volatile crypto environment.
✅ Takeaway
Coinbase returned to solid profitability in FY2025 with strong cash reserves and positive operating cash flow. However, results remain closely tied to crypto market cycles and regulatory developments. The company appears financially stronger than during previous downturns but continues to operate in a highly regulated and evolving industry.
Income Statement Summary 💵
| FY 2023 | FY 2024 | FY 2025 | |
|---|---|---|---|
| Revenue | 3,108.4 | 6,564.0 | 7,181.3 |
| Cost of Goods Sold | — | — | — |
| Gross Profit | — | — | — |
| SG&A | 1,406.6 | 1,954.7 | 2,678.2 |
| Operating Income | (161.7) | 2,307.2 | 1,435.4 |
| Non-Operating Income/Expense | — | — | — |
| Interest Income/Expense | (82.8) | (80.6) | (85.4) |
| Income Before Tax | (76.8) | 2,942.6 | 1,522.1 |
| Income Tax | (171.7) | 363.6 | 261.7 |
| Net Income | 94.9 | 2,579.1 | 1,260.3 |
| EPS | 0.4 | 9.5 | 4.5 |
Plain English: Coinbase’s revenue rose from $3,108.4m (FY2023) to $7,181.3m (FY2025). Net income stayed positive in all three years shown here, but operating income swung sharply across the cycle (a loss in FY2023, very strong profit in FY2024, and still positive in FY2025). EPS (earnings per share, or profit per share) also followed that pattern.
Key Financial Ratios 🧮
| Ratio | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|
| ROE (%) | 1.6 | 31.2 | 10.1 |
| ROA (%) | 0.2 | 13.8 | 4.8 |
| ROTC (%) | (1.7) | 15.6 | 6.4 |
| ROIC (%) | 4.8 | 32.3 | 10.6 |
| Gross Margin (%) | — | — | — |
| Operating Margin (%) | (5.2) | 35.1 | 20.0 |
| Pretax Margin (%) | (2.5) | 44.8 | 21.2 |
| Net Margin (%) | 3.1 | 39.3 | 17.6 |
| Debt-to-Equity Ratio (D/E) (%) | 48.4 | 44.1 | 51.8 |
| Net Debt / EBITDA (x) | 95.2 | (1.6) | (2.2) |
| Interest Coverage Ratio (x) | (2.0) | 28.6 | 16.8 |
| Current Ratio (%) | 207.0 | 228.1 | 234.3 |
| Quick Ratio (%) | 96.8 | 110.9 | 136.8 |
| Fixed Asset to Long-term Capital Ratio (%) | 2.1 | 1.4 | 1.3 |
Plain English: A few beginner-friendly signals stand out. Operating Margin (operating profit as a % of revenue) improved sharply in FY2024 and stayed positive in FY2025. Interest Coverage shows how easily operating profit can pay interest; it was strong in FY2024–FY2025. Net Debt / EBITDA was negative in FY2024–FY2025, meaning the company held more cash than total debt.
📝 Disclaimer
This article is intended for educational purposes only. It does not constitute financial, investment, or legal advice. All investment decisions involve risks, and readers should conduct their own research or consult with a licensed financial advisor.
👉 Coinbase Global (COIN) FY 2025 10-K Analysis (Filed 2026) | Explained for Beginners