CO

Coinbase Global, Inc. stock research

Mar 31, 2025

FY2025 Q1

Coinbase Global (COIN) Gross Margin — Quarter Ended Mar 31, 2025

Revenue and gross profit both decreased from the prior quarter, while cost of revenue increased, resulting in a lower gross margin. Compared to the same quarter one year earlier, revenue and gross profit were higher, but cost of revenue rose more sharply, leading to a weakened gross margin.

Gross margin takeaway

Quarter ended Mar 31, 2025 · FY2025 Q1

Revenue and gross profit both decreased from the prior quarter, while cost of revenue increased, resulting in a lower gross margin. Compared to the same quarter one year earlier, revenue and gross profit were higher, but cost of revenue rose more sharply, leading to a weakened gross margin.

  • The gross margin weakened sequentially and year-over-year, driven by a proportionally larger increase in cost of revenue relative to revenue growth. The strongest observable driver is the rising cost of revenue, which outpaced revenue changes in both comparisons.
  • Compared to the prior quarter, revenue and gross profit were lower, cost of revenue was higher, and gross margin weakened. Compared to the same quarter last year, revenue and gross profit were higher, but cost of revenue was substantially higher, and gross margin weakened.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

84.0%

Gross profit

$1.7B

Revenue

$2.0B

Cost of revenue

$326.4M

Quarter-over-quarter change

-3.9 pts

Year-over-year change

-7.9 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Jun 30, 2024$1.4B$1.2B$256.9M82.3%
Sep 30, 2024$1.2B$1.0B$157.1M87.0%
Dec 31, 2024$2.3B$2.0B$275.3M87.9%
Mar 31, 2025$2.0B$1.7B$326.4M84.0%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Dec 31, 2024

-3.9 pts

Year-over-year change

Mar 31, 2024

-7.9 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The gross margin weakened sequentially and year-over-year, driven by a proportionally larger increase in cost of revenue relative to revenue growth. The strongest observable driver is the rising cost of revenue, which outpaced revenue changes in both comparisons.

Compared to the prior quarter, revenue and gross profit were lower, cost of revenue was higher, and gross margin weakened. Compared to the same quarter last year, revenue and gross profit were higher, but cost of revenue was substantially higher, and gross margin weakened.

Monitor the trajectory of cost of revenue, as its growth rate has exceeded revenue growth in both sequential and year-over-year comparisons.