When Coinbase went public in April 2021, its net revenue surged nearly sixfold from 2020 to 2021, driven by rising cryptocurrency prices and trading activity. However, after the peak of the crypto bull market, the industry faced significant challenges, including high-profile collapses like FTX, Celsius, Voyager, and Terra Luna. These events, combined with declining crypto prices, led to a sharp drop in Coinbase’s net revenue.
As of Q1 2025, Coinbase reported:
- Total revenue: $2.03 billion (24% YoY increase but below analyst expectations of $2.1 billion).
- Transaction revenue: $1.26 billion (19% QoQ decline due to reduced trading volumes and fee compression).
- Subscription/services revenue: $698 million (9% QoQ growth, fueled by stablecoin-related income).
The company’s net income for Q1 2025 was $66 million—a steep drop from $1.18 billion in the same quarter the previous year. Adjusted net income stood at $527 million ($1.94 per share), down from $679 million ($2.53 per share) a year earlier.
Coinbase highlights the volatility of its revenue streams, stating in its Q1 2025 shareholder letter:
“Our total revenue depends heavily on crypto asset prices and platform transaction volume. Declines in either would adversely affect our business.”
This underscores the company’s exposure to market fluctuations and the need to diversify revenue sources.
Key Metrics Breakdown
Revenue Per User (Monthly)
| Year | Average Revenue Per User |
|--------------|--------------------------|
| 2017 | $55 |
| 2018 | $45 |
| 2019 | $34 |
| 2020 | $45 |
| 2021 | $64 |
| 2022 | $31 |
| 2023 | $30 |
| 2024 | $68.75 |
| Q1 2025 | $81.67 (Peak) |
In Q1 2025, Coinbase’s net income fell to $66 million (vs. $1.18 billion YoY), partly due to a $597 million pre-tax loss on its crypto asset portfolio. However, adjusted EBITDA reached $930 million, reflecting robust operational performance.
👉 Explore Coinbase’s latest financial trends
FAQs
1. Why did Coinbase’s revenue drop in 2025?
Declining crypto prices and reduced trading volumes after the market peak impacted transaction fees, despite growth in subscription revenue.
2. What drives Coinbase’s revenue?
Primarily transaction fees (trade volume-dependent) and subscription services (e.g., stablecoin income, custodial fees).
3. How does Coinbase mitigate revenue volatility?
By expanding into stablecoins, staking, and institutional services, though market exposure remains significant.
👉 Learn more about crypto market dynamics
Note: All figures are sourced from Coinbase’s quarterly reports. For deeper analysis, refer to official disclosures.