COIN
Coinbase Global, Inc.
Financial Services · Financial Data & Stock Exchanges · United States · Stock
Score Breakdown
Scored for Safe Long-Term Investing profile
Sub-scores are 0–20 each; Model Score is weighted by your selected investment goal. How it works →
Why Ranked Here
- The composite score is weighed down heavily by a low growth sub-score reflecting the 51.1% net income decline and 53.1% EPS drop despite modest revenue growth.
- The momentum factor scored very low due to declining quarterly revenue and back-to-back net losses in 2025Q4 and 2026Q1, signaling near-term deterioration.
- Zero scores for both dividend and macro theme assignment removed potential upside credit that other securities in the model may receive.
Why Not Higher
- Despite solid full-year margins and a healthy balance sheet, the sharp contraction in net income and EPS and the negative recent quarterly momentum prevent a higher composite score.
- The absence of a dividend and no macro theme tailwind mean Coinbase receives no additional credit from those two factors, capping the overall score.
Data Confidence
8 / 10
High — most data fields present
Why This Score
Grounded in figures from this company's SEC EDGAR filings — not a restatement of the score itself.
Revenue grew from FY2024 to FY2025 by 9.4%, rising to $7,181,325,000, but net income fell 51.1% over the same period and diluted EPS declined 53.1% from FY2024 to FY2025.
The model penalized the sharp contraction in profitability metrics despite modest top-line growth, resulting in a low sub-score that reflects the earnings deterioration outweighing the revenue gain.
In FY2025, Coinbase posted an operating margin of 20.0%, a net margin of 17.6%, and a return on equity of 8.5%.
The model rewarded the double-digit operating and net margins as evidence of a meaningfully profitable business, while the more modest return on equity tempered the score from a perfect mark.
In FY2025, Coinbase carried a debt-to-equity ratio of 0.49 and reported total assets of $29,671,832,000.
A sub-1.0 debt-to-equity ratio signals a conservatively leveraged balance sheet, and the large asset base provides a substantial foundation, both of which the model rewarded with a high sub-score.
Quarterly revenue peaked at $1,868,693,000 in 2025Q3 then declined to $1,781,129,000 in 2025Q4 and further to $1,412,982,000 in 2026Q1. Net income swung from $1,428,900,000 in 2025Q2 to losses of -$666,733,000 in 2025Q4 and -$394,117,000 in 2026Q1, while operating income oscillated between negative and positive across all four quarters.
The model assigned a low score because both revenue and net income are trending downward in the most recent quarters, and operating income has been inconsistent, indicating deteriorating near-term momentum.
Coinbase does not currently pay a dividend and has no mapped dividend history, making it a genuine non-payer rather than a case of missing data.
The model assigns a score of zero for this factor because dividend income is entirely absent, which is consistent with many high-growth financial technology companies that reinvest capital rather than distribute it.
Coinbase is not currently assigned to any of the 24 tracked macro themes in the model.
The absence of a theme assignment means the security did not receive any thematic tailwind credit under the current methodology; this is a neutral classification rather than a negative signal about the company itself.
Research Summary
AI-generated analysis reflects data and conditions as of the report date shown above. Verify any specific figures through primary sources before acting on this analysis.
Coinbase delivered modest top-line growth of 9.4% in FY2025, reaching $7.18 billion in revenue, but net income fell 51.1% and diluted EPS dropped 53.1%, reflecting a sharp deterioration in profitability despite the revenue gain. The company maintains a healthy balance sheet with a debt-to-equity ratio of 0.49 and total assets of nearly $29.7 billion, and posted a 20.0% operating margin and 17.6% net margin for the full year. However, recent quarterly trends are concerning, with revenue declining from a peak of $1.87 billion in 2025Q3 to $1.41 billion in 2026Q1 and net income swinging to losses in both 2025Q4 and 2026Q1. The absence of a dividend and no current macro theme assignment leave the composite score at a modest level, earning a Monitor Only label.
Plain English
Coinbase is making money and has a solid balance sheet, but its profits dropped sharply last year and the most recent quarters show falling revenue and back-to-back net losses, so it's worth watching but not acting on right now.
Bull Case vs. Bear Case
Bull Case
- Coinbase runs a genuinely profitable business, posting a 20.0% operating margin and 17.6% net margin in FY2025, demonstrating it can generate meaningful earnings at scale.
- The balance sheet is conservatively structured, with a debt-to-equity ratio of just 0.49 and a large total asset base of nearly $29.7 billion, providing financial stability.
- Full-year revenue grew 9.4% from FY2024 to FY2025, reaching $7.18 billion, showing the business can still expand its top line.
Bear Case
- Net income collapsed 51.1% year-over-year and diluted EPS fell 53.1% in FY2025, signaling that profitability is deteriorating far faster than revenue is growing.
- Quarterly momentum is negative: revenue declined from $1.87 billion in 2025Q3 to $1.41 billion in 2026Q1, and net income swung to losses of -$666.7 million in 2025Q4 and -$394.1 million in 2026Q1.
- Operating income has been highly inconsistent across recent quarters, swinging from a loss of -$24.7 million in 2025Q2 to a gain of $480.5 million in 2025Q3 and back to a loss of -$21.4 million in 2026Q1, making earnings predictability very low.
What Could Change the Picture
Bullish Triggers
- A sustained return to positive and growing net income across multiple consecutive quarters, reversing the recent losses seen in 2025Q4 and 2026Q1, would signal that the profitability deterioration has stabilized.
- A meaningful reacceleration in quarterly revenue growth beyond the 2025Q3 peak of $1.87 billion would suggest the top-line momentum has turned around.
Bearish Triggers
- If operating margins compress further from the current 20.0% full-year level, it would indicate that cost pressures are overwhelming revenue growth and the business model is weakening.
- Continued quarterly net losses beyond 2026Q1 would deepen concerns about the sustainability of profitability and could pressure the already-modest return on equity of 8.5%.
Risk Profile
Medium RiskCoinbase's balance sheet risk is relatively contained given a sub-1.0 debt-to-equity ratio of 0.49 and a large asset base of $29.7 billion, but the operational risk is elevated by highly volatile and recently negative quarterly net income, including losses of -$666.7 million in 2025Q4 and -$394.1 million in 2026Q1, alongside inconsistent operating income across recent quarters.
This report is for educational and research purposes only. It does not constitute financial, investment, legal, or tax advice — always conduct your own due diligence before making investment decisions.