Coinbase's Revenue Growth Accelerates with Stablecoin Expansion

Coinbase Global (NASDAQ: COIN) has been experiencing significant growth in its subscription and services revenue, which has increased by 100% over the past two years to reach $2.8 billion annually. The company's stablecoin revenue has also been growing, with USDC generating $1.4 billion in revenue for full-year 2025. This is a relatively small portion of the total revenue, but it has the potential to become a significant contributor to the company's revenue.

The launch of Coinbase's Everything Exchange product suite, which includes stock trading, prediction markets, and regulated crypto futures, is also expected to contribute to the company's growth. The SEC's new classification framework for digital assets has removed some regulatory uncertainty, making it easier for institutions to adopt stablecoins. Robinhood (HOOD) is also pursuing a similar product vision, but Coinbase's exchange regulatory status gives it advantages that broker-dealers like Robinhood don't currently have.

The company's free cash flow of $3.38 billion in Q4 despite a GAAP net loss demonstrates its ability to generate significant cash even during down crypto markets. The adjusted EBITDA of $566 million through a down crypto quarter is also a positive sign. With Bitcoin recovering above $73,000 and Ethereum recovering as well, the transaction revenue base for Q2 and Q3 2026 is set up better than Q4 2025.