Coinbase Q1 Earnings Beat, Revenues Miss Estimates, Volumes Rise Y/Y

Coinbase Global, Inc. COIN reported first-quarter 2025 net operating earnings per share of $1.94, which beat the Zacks Consensus Estimate by 4.9%. The bottom line increased 17.6% year over year. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)The quarterly results benefited from higher consumer and institutional transaction revenues and crypto asset prices. Further, the continued growth of Coinbase One subscribers and improved adjusted EBITDA added to the upside. Escalating expenses were an offset.Operational Update       Total trading volume increased 26% year over year to $393 million in the reported quarter. The Zacks Consensus Estimate was pegged at $388 million.Total revenues of $2 billion missed the Zacks Consensus Estimate by 4.1%. The top line increased 24% year over year on higher Transaction revenues, Subscription and services revenues and other revenues.Coinbase Global, Inc. Price, Consensus and EPS Surprise Coinbase Global, Inc. price-consensus-eps-surprise-chart | Coinbase Global, Inc. QuoteTotal transaction revenues increased 18.2% year over year to $1.3 billion in the quarter. The growth was due to an increase in consumer transaction revenues, institutional transaction revenues and other transaction revenues. The Zacks Consensus Estimate was pegged at $1.3 billion.Total subscription and services revenues increased 36.3% year over year to $698.1 million in the reported quarter. The growth was driven by higher Stablecoin revenues. The Zacks Consensus Estimate was pegged at $698 million.Adjusted EBITDA was $929.9 million in the reported quarter, which fell 8.3% from the year-ago quarter.  Total operating expenses increased 51.5% to $1.3 billion in the quarter due to higher sales and marketing and general and administrative expenses.Financial UpdateCoinbase exited the first quarter with cash and cash equivalents of $8.1 billion as of March 31, 2025, down 5.5% from 2024-end. As of March 31, 2025, long-term debt increased 4.7% from 2024-end to $4.2 billion. Shareholders' equity was $10.7 billion at first-quarter 2025-end, up 1.9% from 2024-end. Net cash used in operating activities was $182.7 million in first-quarter 2025 versus net cash provided by operating activities of $411.5 million in the year-ago quarter.Q2 2025 OutlookCoinbase expects subscription and services revenues to be in the range of $600-$680 million. It expects growth in Stablecoin revenues to be offset by a decline in blockchain rewards revenues due to lower asset prices.Coinbase expects technology and development and general and administrative expenses to be in the range of $700-$750 million, reflecting growth in variable expenses related to elevated trading volume as well as payroll taxes and headcount.The company projects sales and marketing to be between $215 million and $315 million. Coinbase expects sales and marketing expenses to increase quarter over quarter to $235-$375 million due to potential variability in performance marketing and USDC assets in the product suite, which drives USDC rewards. Coinbase expects transaction expenses to be in the mid-to-high teens as a percentage of net revenues.Zacks Rank of COINCOIN currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Performance of Other PlayersBread Financial Holdings’ BFH operating income of $2.86 per share for the first quarter of 2025 beat the Zacks Consensus Estimate by 36.2%. The bottom line improved 4.8% year over year. Revenues decreased 2.1% year over year to $970 million. The top line, however, beat the consensus estimate by 1.3%.Credit sales of $6.1 billion increased 1%, driven by higher general-purpose spending and overall transaction volume. Average loans of $18.2 billion decreased 2%, primarily due to the macroeconomic environment. Pre-tax pre-provision earnings decreased 3.1% year over year to $493 million due to lower net interest income.American Express Company AXP reported first-quarter 2025 earnings per share (EPS) of $3.64, which beat the Zacks Consensus Estimate by 5.5%. The bottom line climbed 9% year over year. Total revenues net of interest expense amounted to $16.97 billion, which missed the Zacks Consensus Estimate by 0.2%. The top line improved 7% year over year in the quarter under review.Network volumes of $439.6 billion rose 5% year over year in the first quarter, driven by higher U.S. consumer spending. The figure, however, missed the Zacks Consensus Estimate by 1.2%. Total interest income of $6.1 billion increased 6% year over year and beat the consensus mark by 1%. Provision for credit losses declined 9% year over year to $1.2 billion due to a modest net reserve release.American Express anticipates revenues to increase between 8% and 10% in 2025 from the 2024 level of $65.9 billion. Management expects EPS in the range of $15-$15.50, the midpoint of which indicates an improvement of 8.9% from the 2024 level of $14.01.Virtu Financial, Inc. VIRT reported first-quarter adjusted EPS of $1.30, which beat the Zacks Consensus Estimate by 9.2%. The bottom line soared 71.1% year over year. Adjusted net trading income of $497.1 million advanced 35.5% year over year. The top line surpassed the consensus estimate by 4.7%.Adjusted EBITDA was $319.9 million, which climbed 57.7% year over year and came higher than our estimate of $246.2 million. Adjusted EBITDA margin improved 910 basis points year over year to 64.4%.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report American Express Company (AXP): Free Stock Analysis Report Virtu Financial, Inc. (VIRT): Free Stock Analysis Report Coinbase Global, Inc. (COIN): Free Stock Analysis Report Bread Financial Holdings, Inc. (BFH): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks