Coinbase reports beat expectations. Is the cryptocurrency exchange coming out of recession?

Coinbase, the largest cryptocurrency exchange in the United States, beat Wall Street forecasts for revenue and profit for the third quarter. Increased volatility in the market of digital assets contributed to the growth of trading volumes and transaction revenues. The crypto exchange's shares rose 1.5 times in the first seven months of 2025, but then there was a collapse, from which they have not recovered to this day.

Coinbase reported revenue of $1.9 billion for the third quarter, up 55% from the same period last year. Earnings per share (EPS) amounted to $1.5 against $0.28 a year earlier. Transaction revenue jumped 37% to $1 billion, while subscription and services revenue grew 14% to $747 million, with total operating expenses down 9%.

Analysts on average expected Coinbase to report revenue of $1.8 billion and earnings of $1.13 per share, Barron's reported, citing FactSet data. The consensus forecast called for growth across the board - from retail and institutional client transactions to subscriptions and services, the publication notes.

After the publication of Coinbase's reports, its shares jumped by 3.6% to $340.4 on the postmarket on October 30, recovering from a 5.7% drop at the end of the main trading session. In the morning of October 31, the cryptocurrency exchange's securities continued to grow on the over-the-counter Blue Ocean ATS and almost completely recovered from Thursday's drawdown.

New York-based investment bank H.C. Wainwright, which in July downgraded Coinbase to a "Sell" rating, raised it by two notches on October 30 - even before the report was published - recommending to buy these securities (Buy). Analysts also raised their target price on Coinbase shares from $300 to $425. "Our stance is bullish once again," H.C. Wainwright analyst Mike Colonnese wrote about Coinbase. - "We expect rising crypto asset prices, driven by seasonal dynamics and growing institutional demand, and a tailwind in [crypto industry] regulation to push the stock up in the final quarter of the year.

The upgrade from H.C. Wainwright followed a bullish recommendation from JPMorgan Chase, notes Barron's. Wall Street's largest bank last week upgraded Coinbase from Neutral to "above market," also equivalent to a buy recommendation, and raised its target price from $342 to $404. JPMorgan noted that Coinbase has many monetization opportunities beyond crypto trading, including Coinbase One, a monthly paid subscription for traders.

From January to July 2025, Coinbase's shares rose by 52%. This was facilitated by the growth of cryptocurrency prices, the adoption of The Genius Act in the U.S., which regulates stablecoins, and the inclusion of the company in the S&P 500 index, recalls Barron's. But then came the downturn: on August 1, the stock plunged 17% after its second-quarter earnings report showed a 39% drop in transaction revenue - and Coinbase hasn't recouped those losses to date.

Now cryptocurrency companies are waiting for another document to pass in the U.S. Senate - The Clarity Act, which divides regulatory powers between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Industry participants believe that if passed, this legislation, which has already passed the House of Representatives, will pave the way for broad participation of traditional financial institutions in the cryptocurrency market, CoinDesk wrote. H.C. Wainwright expects The Clarity Act to be passed by the Senate by the end of 2025 and will be a catalyst for growth in Coinbase shares.

This article was AI-translated and verified by a human editor