From Nasdaq

June 09, 2025 12:05:00 PM:

Coinbase Global Inc. (COIN) derives the majority of its revenues from transaction fees, with over 50% of its top line coming from this source. Transaction revenues increased by 18.2% in the first quarter of 2025, driven by a 26% increase in trading volume.

The surge in crypto trading activity continues to boost COIN’s transaction-based income. Coinbase is investing in infrastructure like Base, its Layer 2 Ethereum scaling solution, to support long-term growth. They have also expanded asset offerings by launching tokenized equities such as cbXRP and cbDOGE on Base.

COIN faces competition from companies like Robinhood Markets (HOOD) and Interactive Brokers Group, Inc. (IBKR), both of which also rely heavily on transaction revenues for growth. Interactive Brokers Group’s commission-based transaction revenues demonstrate strong operating leverage.

Shares of COIN have gained 1.2% year to date, outperforming the industry average. However, COIN trades at a price-to-earnings value ratio of 45.5, above the industry average, with a Value Score of F. Estimates for COIN’s second-quarter and third-quarter 2025 EPS have decreased, but full-year 2025 and 2026 estimates have increased.

COIN stock currently carries a Zacks Rank #3 (Hold). The consensus estimates for COIN’s 2025 and 2026 revenues indicate year-over-year increases, while EPS estimates show mixed results. Coinbase continues to focus on diversifying income and enhancing business resilience.

Read more at Nasdaq: Coinbase’s Transaction Fees Improve: Will it Accelerate Growth?