Here's Why Sales & Marketing Spend is Pivotal for Coinbase
The close alignment between S&M spending and user activity demonstrates a strong return on investment. Notably, stablecoin-based rewards helped lift subscription and services revenues by boosting average on-platform balances. In the first quarter of 2025, S&M expense reached $247 million, more than double year over year, driving a 17% increase in transaction revenues. Sales and marketing spend accounted for 10% of total revenues in 2024 and rose to 12% in the first quarter of 2025. Management estimates sales and marketing spend between $215 million and $315 million in the second quarter of 2025.
Coinbase's strategic use of marketing supports scalable growth, asset locking and monetization opportunities across its ecosystem. While increased S&M outlays may put pressure on margins in the near term, historical data suggests that every incremental marketing dollar has driven meaningful growth in volume and recurring income. As such, disciplined S&M investment remains a value-accretive driver of Coinbase's long-term shareholder returns.
What About COIN's Competitors?
Marketing expenses are critical to Robinhood Markets ' HOOD performance, helping the platform attract and retain a broad base of retail investors in a competitive fintech landscape and supporting growth in assets under custody and transaction-based revenues. Robinhood's marketing expenses increased 57% year over year in the first quarter of 2025 and constituted 26.4% of total revenues.
Sales and marketing spending is also essential to Block Inc.'s XYZ growth, fueling expansion across its broad suite of financial services and strengthening relationships in a competitive fintech landscape. For Block, S&M increased 13.6% year over year in the first quarter of 2025 and constituted 8.7% of total revenues.
COIN's Price Performance
Shares of COIN have gained 37.3% year to date, outperforming the industry.
COIN's Expensive Valuation
COIN trades at a price-to-earnings value ratio of 60.33, above the industry average of 19.74. But it carries a Value Score of F.
Estimates for COIN Witness Northward Movement
The Zacks Consensus Estimate for COIN's second-quarter and third-quarter 2025 EPS has moved up 10.3% and 7.1%, respectively, over the past 30 days. The same for full-year 2025 and 2026 has increased 22.8% and 2.7%, respectively.
Image Source: Zacks Investment Research
The consensus estimate for COIN's 2025 and 2026 revenues indicates year-over-year increases. While the consensus estimate for COIN's 2025 EPS indicates a decline, the same for 2026 EPS suggests an increase.
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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Coinbase Global, Inc. (COIN): Free Stock Analysis Report
Robinhood Markets, Inc. (HOOD): Free Stock Analysis Report
Block, Inc. (XYZ): Free Stock Analysis Report
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