Coinbase Posts $719 Million Q3 Net Income On Crypto Gains

Coinbase posted $719 million in third-quarter net income, or $2.51 per diluted share, ending a two-quarter losing streak, according to Decrypt. Analysts had expected a loss of 15 cents per share. However, about $715 million of the profit came from gains on crypto the exchange holds as an investment on its balance sheet. Excluding those and other investment gains, adjusted net income stood at $78 million.

Total revenue came in at $1.22 billion, matching expectations while remaining flat from the second quarter and down 35% from a year earlier. Transaction revenue dipped 1% to $590 million, beating the roughly $527 million analysts anticipated as crypto volatility fell to multiyear lows and market-wide trading volume dropped. Subscription and services revenue rose 3% to $570 million, accounting for nearly half of net revenue, bolstered by $307 million from stablecoins.

Growth in Prediction Markets

The company highlighted prediction markets as a standout product, crossing $200 million in annualized revenue. Daily traders grew more than 60% from the prior quarter, and revenue compounded 82% per quarter since launch. According to CEO Brian Armstrong, the product continued to grow through slower sports months, while Chief Financial Officer Alesia Haas noted the offering provides a revenue stream less correlated to crypto volatility.

Subscription metrics also showed expansion, with average USDC held in Coinbase products reaching a record $22 billion and paid Coinbase One subscribers reaching an all-time high, up 24% from a year earlier. The exchange's share of global crypto trading volume rose to 10.7%, marking its fourth consecutive quarterly gain.

Cost Reductions and Outlook

Coinbase lowered its 2026 adjusted expense guidance by an additional $100 million at the midpoint, bringing the range to between $4.15 billion and $4.3 billion. Adjusted EBITDA increased 60% from the prior quarter to $333 million. Through October 25, fourth-quarter transaction revenue reached approximately $165 million. Shares closed down 1.1% at $160.59 ahead of the earnings report.

Key facts

• Coinbase reported third-quarter net income of $719 million, or $2.51 per share.
• Approximately $715 million of the net income came from crypto investment gains.
• Total revenue was $1.22 billion, flat quarter-over-quarter.
• Prediction markets surpassed $200 million in annualized revenue.
• Subscription and services revenue reached $570 million.