Coinbase Global Inc
. COIN is steadily expanding its subscriptions and services revenues to diversify income and enhance business resilience. Transaction revenues continue to be the biggest revenue stream for this crypto leader. As trading revenues remain sensitive to crypto market volatility, subscription and services provide a more stable foundation, underpinned by predictable, fee-based, non-transactional offerings.
Subscription and services revenues have shown consistent growth, with USDC-related stablecoin income becoming an increasingly important driver. Rising average USDC balances across both customer and corporate accounts are expected to enhance stablecoin revenues, while higher prices for Solana and Ethereum are likely to boost earnings from blockchain rewards.
Thus, fluctuations in USDC demand, the amount of USDC held on the platform, prevailing interest rates and key partnerships — especially with organizations like Circle — can significantly influence subscription and services revenues, which contributed about 36% to the company’s net revenues in the first quarter of 2025, up from 32% in the first quarter of 2024.
COIN recently agreed to acquire Derbit, which, upon materialization, will lead to a more diverse and robust source of revenues.
Management estimates subscription and services revenues in the range of $600-$680 million in the second quarter of 2025. It also expects growth in Stablecoin revenues to be offset by a decline in blockchain rewards revenues due to lower asset prices.
Scaling subscription and services business by pushing stablecoin income, staking services, and growing uptake of Coinbase One and custody solutions to drive higher revenues from this source will thus play a crucial part in Coinbase's long-term growth.
What About COIN’s Competitors?
COIN competes with
Robinhood Markets
HOOD and
Interactive Brokers Group, Inc
. IBKR, two crypto-oriented companies.
Robinhood’s subscription and services revenues, led by its Robinhood Gold program and other ancillary offerings, continue to grow at a steady pace. This recurring revenue stream complements the company’s robust transaction and interest income, contributing to sustained top-line expansion.
Interactive Brokers Group’s non-commission revenue streams—comprising market data fees, IBKR Pro subscriptions, clearing and routing services, and interest earned from margin lending—complement its commission-based brokerage model and serve as important contributors to overall revenue growth.
COIN’s Price Performance
Shares of COIN have gained 3.7% year to date, outperforming the industry.
COIN’s Expensive Valuation
COIN trades at a price-to-earnings value ratio of 46.1, above the industry average of 18.7. However, it carries a Value Score of F.
Estimates for COIN Witness Southward Movement
The Zacks Consensus Estimate for COIN’s second-quarter and third-quarter 2025 EPS has moved down 50% and 39.6%, respectively, over the past 60 days. The same for full-year 2025 and 2026 EPS has increased 62.2% and 21.1%, respectively. While the consensus mark for COIN’s 2025 EPS indicates a year-over-year decline, the same for 2026 EPS suggests an increase.
The consensus estimates for COIN’s 2025 and 2026 revenues indicate year-over-year increases.
COIN stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Interactive Brokers Group, Inc. (IBKR) : Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).
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