TLDR
- Coinbase reported Q3 earnings of $2.51 per share, while FactSet analysts had forecast a loss of 23 cents.
- The stock fell in after-hours trading Thursday and is down 54% over the past 12 months.
- Most of the $718.7 million net profit came from unrealized crypto gains, and adjusted net income was $77.7 million.
- Prediction markets now generate $200 million in annualized revenue, 82% compound quarterly growth since the January launch.
- Spot trading volume was $134.5 billion, roughly half of last year’s level.
Coinbase (COIN) stock slipped in after-hours trading Thursday after the company posted a surprise third-quarter profit. Reports put the drop between 3% and 5%, with the price near $156 in one account.
The stock closed near $158 on Thursday. It has fallen 54% over the past 12 months.
Coinbase reported earnings of $2.51 per share. FactSet analysts had forecast a loss of 23 cents per share.
COINBASE $COIN Q3’26 EARNINGS HIGHLIGHTS
🔹 Revenue: $1.22B (Est. $1.23B) 🔴; -35% YoY
🔹 EPS: $2.51 (Est. -$0.06) 🟢
🔹 Transaction Rev: $590M (Est. $527M) 🟢; -44% YoY
🔹 S&S Revenue: $570M (Est. $561.5M) 🟢; -20% YoY
🔹 Adj. EBITDA: $332.9M (Est. $290.2M) 🟢; -58% YoY
🔹 Net… pic.twitter.com/2dVK8CAutc— Wall St Engine (@wallstengine) October 29, 2026
Revenue came in at $1.22 billion, according to FactSet, against estimates of $1.21 billion. CNBC reported revenue of $1.20 billion versus the $1.233 billion LSEG analysts expected.
Net income was $718.7 million. Most of that came from unrealized gains on crypto assets held for investment.
What Is Behind the Profit
Strip out those gains and the picture changes. Adjusted net income was $77.7 million, down from $420.7 million a year ago.
Bitcoin rose 39% in the quarter ended Sept. 30. That lifted the value of Coinbase’s crypto investment portfolio.
Spot trading volume was about $134.5 billion. Analysts expected $137 billion, and the figure is roughly half of last year’s level.
Coinbase’s trading volume market share rose to 10.7% from 5.6% a year ago. In other words, it is winning a bigger slice of a smaller pie.
Mizuho analyst Dan Dolev called the report “better than feared.” He also said the crypto market remains challenged.
Life Beyond Crypto Trading
Prediction markets, launched in January, now bring in $200 million in annualized revenue. Traders on those markets rose 60% from the second quarter.
Subscription and services revenue, which includes USDC, was $570 million. That is down from $717 million a year ago, but it made up about half of net revenue versus 41% last year.
Chief Business Officer Shan Aggarwal said new products are “less correlated with crypto market volatility.” He said the diversification is showing up in results.
Coinbase for Agents launched in early October for users of AI agents. The company also earns from traditional stock and fund trading.
Aggarwal said fee compression could come as adoption grows, but Coinbase has not seen it yet. Some analysts expect fees to face pressure as Wall Street firms enter crypto.
The Clarity Act failed to advance in the Senate in September. Coinbase had been one of its biggest backers.
Bitcoin traded near $80,400 on Wednesday, down from above $122,000 last October. Coinbase stock closed near $158 Thursday before sliding after hours.
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