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Coinbase Global (COIN) delivered a powerful upside surprise for Q3, sharply exceeding both EPS and revenue expectations and reversing last quarter’s earnings miss. Shares are trading sharply higher in response to the robust results and upbeat guidance for Q4.

• Revenue rose to $1.9 bln, with adjusted EBITDA of $801 mln and net income of $433 mln -- each meaningfully above consensus. These results reflect the strongest quarterly revenue growth since early 2023, fueled by broad-based strength across product lines.
• Transaction revenue surged 37% qtr/qtr, led by record trading volumes. Consumer trading contributed $59 bln (up 37%), while institutional volumes climbed to $236 bln as institutional clients remained highly active. Both segments marked a major turnaround from Q2’s tepid activity.
• Derivatives remain a critical growth driver, boosted by the completed Deribit acquisition. Options and perpetual futures trading set new all-time highs, totaling $840 bln in Q3 derivatives volume. Institutional transaction revenue soared 122%, with derivatives contributing $52 mln in incremental Q3 revenue.
• Subscription and services revenue advanced 14% to $747 mln, underpinned by growth in USDC balances, institutional financing, and assets under custody. USDC assets on-platform averaged $15 bln, positioning COIN as the ecosystem leader and the largest contributor to USDC’s $74 bln market cap.
• COIN ended Q3 with $516 bln in platform assets and $11.9 bln in USD resources, representing exceptional balance sheet strength and liquidity.
• The company’s Q4 outlook is upbeat: October transaction revenue is projected at $385 mln and subscription & services revenue in the $710–$790 mln range. Expense growth will moderate as hiring slows into early 2026.

Briefing.com Analyst Insight:

COIN sprang back from last quarter’s disappointment to deliver some of its best results since going public, powered by a dramatic acceleration in trading volumes and strong execution on its Everything Exchange strategy. The jump in derivatives and institutional trading sets an impressive foundation for diversified, sustainable growth, while USDC platform balances shore up fee income and balance sheet safety. Regulatory clarity and vertical integration are expanding COIN’s total addressable market, but headcount and tech investments temper margin expansion over the near term. As adoption of stablecoins and crypto payments continues -- underscored by deep partnership momentum -- the valuation looks increasingly justified if operating leverage holds and competitive threats remain contained. Still, the risk of elevated operating expenses, sector volatility, and intensifying competition means execution will remain in sharp focus into 2026.