TLDR
- Coinbase reported $719 million in third-quarter net income, up 66% year over year.
- Total revenue fell 35% annually to $1.22 billion.
- Crypto investment gains contributed $715 million to reported earnings.
- Prediction markets surpassed $200 million in annualized revenue.
- Coinbase’s spot trading volume declined 8% to $134.5 billion.
Coinbase Global reported $719 million in net income for the third quarter of 2026, as weaker trading reduced revenue. Growth in prediction markets and services gave the exchange additional sources of income.
Revenue reached $1.22 billion, flat from the previous quarter but 35% below the same period last year. Coinbase released the results on October 29.
Coinbase Profit Includes Crypto Investment Gains
Net income rose 66% from $433 million a year earlier. However, the figure included $715 million in gains on cryptocurrency investments. Excluding investment gains and adjustments, Coinbase reported adjusted net income of $78 million.
Source: SEC
Adjusted earnings before interest, taxes, depreciation and amortization reached $333 million, up 60% from the second quarter. The company recorded its fifteenth consecutive quarter of positive adjusted earnings under that measure.
Prediction Markets Add Another Revenue Stream
Coinbase said prediction markets exceeded $200 million in annualized revenue, roughly double the previous quarter’s pace. The wider sector also drew attention when the NBA signed a prediction market agreement involving federal regulators and trading platforms.
Chief Executive Brian Armstrong said, “Prediction markets have been one of the fastest-growing products in Coinbase history.” Daily users of these markets increased more than 60% during the quarter.
Paid Coinbase One subscriptions climbed 24% from a year earlier. Subscription and services income reached $570 million, accounting for 49% of net revenue.
Derivatives Trading Falls as Market Share Rises
Coinbase processed about $986 billion in derivatives trades, down 7% from the previous quarter. Separately, Crypto.com introduced round-the-clock US derivatives contracts for eligible traders this week.
Spot trading volume declined 8% to $134.5 billion. Despite lower activity, Coinbase’s share of cryptocurrency trading volume rose to 10.7%, its fourth straight quarterly gain.
Bernstein analysts estimated that prediction markets and derivatives generated about one-quarter of transaction revenue. Transaction revenue totaled $590 million, while lower spot activity continued to weigh on trading fees.
Stablecoin Revenue Supports Coinbase Services
Stablecoin revenue reached $307 million, up 5% from the second quarter. Including $21 million earned on corporate USDC balances, the combined figure reached $328 million. Average USDC held through Coinbase products reached $22 billion.
Competition in dollar-backed digital currencies also continued. Separately, Ripple and Robinhood outlined plans for RLUSD, another stablecoin, as firms expanded related services. Bernstein maintained its Outperform rating and $250 price target. William Blair also retained an Outperform rating and estimated a value near $240.
