Coinbase Posts $719M Q3 Profit, Revenue Falls 35% to $1.22B

Published October 30, 2026, 02:15 AM PKT. Based on Coinbase Global's third quarter 2026 press release on October 29, 2026 (primary source for the earnings, revenue, market share and product figures), the company's Form 8-K furnished to the US Securities and Exchange Commission at 4:09 PM ET on October 29, 2026, and CoinLab, TheStreet, BeInCrypto and TradingKey reporting (secondary sources).

Coinbase reported net income of $719 million for the third quarter of 2026, on total revenue of $1.22 billion, the company said on October 29, 2026, after the US market close. The profit reversed a $359.5 million loss in the second quarter and rose from $432.6 million a year earlier, according to the company's press release. Revenue, however, fell about 35% from $1.87 billion in the third quarter of 2025, and the headline profit rests on a paper gain, not on trading: a $715 million gain on crypto assets Coinbase holds for investment accounts for almost all of the $718.7 million net income, while adjusted net income, which strips out those gains, was $77.7 million.

The $715 million paper gain behind the profit

The gap between the headline and the operating result is the story of the quarter. Operating income, the profit from actually running the exchange, was $61.7 million, down from $480.5 million a year earlier, BeInCrypto reported, citing the quarterly filing. Adjusted EBITDA, a measure of operating profit that strips out certain non-cash items, reached $332.9 million, up 60% from $207.8 million in the second quarter but down 58% from $800.7 million a year earlier, according to the press release. It was the company's 15th consecutive quarter of positive adjusted EBITDA. Adjusted expenses fell to $975 million, below the $980 million to $1,080 million range Coinbase had guided in July, CoinLab reported, citing the earnings presentation attached to the 8-K. Diluted earnings per share were $2.51, TheStreet reported, and Coinbase shares closed Thursday at $160.59, down 1.07% from the previous close of $162.32, before edging up 0.41% to $161.25 in after hours trading. The stock is down about 18.6% over the past month and more than 30% since the start of the year, according to TheStreet.

Trading revenue falls 44% as spot volume dries up

Transaction revenue was $590.2 million, down 1% from the second quarter and down 44% from a year earlier, according to the earnings presentation summarized by CoinLab. BeInCrypto reported that consumer spot trading volume fell 59%, and fees from prediction markets, where users trade contracts on event outcomes, partly offset the spot decline. Subscription and services revenue, which includes income from USDC, was $570.2 million, up 3% on the quarter but down 20% on the year, CoinLab reported. Corporate interest and other income added $55.1 million, taking total revenue to $1,215.6 million, against $1,220.1 million in the second quarter and $1,868.7 million in the third quarter of 2025. Subscription and services revenue represented 49% of net revenue in the quarter, the press release said, a share that shows how far Coinbase has moved from depending on trading fees alone, even as both halves of the business shrank year over year.

Market share hits 10.7% for a fourth straight gain

Against the softer market, Coinbase kept gaining share. Its share of global crypto trading volume reached 10.7%, its fourth consecutive quarter of gains, up from 5.6% a year earlier, according to the press release and CoinLab's summary of the filing. The company said it gained share in both spot and derivatives trading, supported by stablecoin demand and diversification into perpetuals, futures and options. Derivatives trading volume has compounded at 179% a year over the past two years, TradingKey reported, citing the company's figures, and Coinbase leads in open interest in global options. Assets on platform were $377 billion, CoinLab reported, and the company said it returned to a peak assets on platform market share of 12.5%. Coinbase also said it expanded its lead as the largest platform for crypto stored globally, a claim chief executive Brian Armstrong repeated in the release: "We continued to execute well on things in our control and compound gains. One of our major assets is that we are the most trusted player in crypto and store more crypto than any company in the world."

Prediction markets pass $200 million in annualized revenue

The fastest growing product in the quarter was prediction markets, which passed $200 million in annualized revenue, the press release said. Revenue from the product has compounded at 82% per quarter since launch, TradingKey reported, and daily traders grew more than 60% from the second quarter. Coinbase said the business grew even through seasonally slower sports months, driven by crypto contracts, and that users who trade predictions also generate incremental spot volume. The company completed the integration of its international derivatives exchange INTX and Deribit in October, CoinLab reported, and warned of near term volume volatility as users adjust to the combined platform. That warning matters for the fourth quarter: Coinbase guided subscription and services revenue of $550 million to $630 million for the quarter, and cited roughly $165 million of transaction revenue quarter to date through October 25, while cautioning against extrapolating that figure.

Record USDC balances and a record Coinbase One base

The subscription side of the business set records of its own. Average USDC held in Coinbase products reached a record $22 billion, up 49% year over year and roughly 30% of average USDC market capitalization, according to the press release. Over the past year, Coinbase captured approximately 50% of all USDC economics, the company said, through onchain partnerships and deeper product integration. Paid Coinbase One subscribers reached an all time high, up 24% year over year, with 3.5 times higher average revenue per user, 4.2 times higher balances per user, and more than 50% higher long term trading retention than other users, the press release said. The average daily loan book balance also reached an all time high, up 74% year over year. Base, Coinbase's layer 2 network, remains the leading layer 2 for spot crypto trading and for DeFi total value locked as of the third quarter, the company said, and tokenized stock volume on Base has grown to more than $1 billion since launch. Chief financial officer Alesia Haas said in the release: "Subscription and services revenue grew quarter over quarter and now represents nearly half of net revenue. Prediction markets are adding another revenue stream and are less correlated to crypto volatility. These businesses make Coinbase more diversified and resilient across market cycles." Coinbase held a live question and answer session on X at 2:00 PM PT on October 29, with a replay and transcript to follow on its investor relations site.

This article is news reporting and is not investment advice.

Sources

• Coinbase Global, third quarter 2026 earnings press release, October 29, 2026, primary source for net income of $719 million, adjusted net income of $78 million, adjusted EBITDA of $333 million, 10.7% crypto trading volume market share, prediction markets above $200 million in annualized revenue, record average USDC held of $22 billion, record paid Coinbase One subscribers, and the fourth quarter subscription and services guidance (press release via BusinessWire at businesswire.com)
• CoinLab, Coinbase Q3: $1.22B revenue, $719M net income (October 29, 2026), secondary source for the 8-K furnished at 4:09 PM ET on October 29, total revenue of $1,215.6 million, transaction revenue of $590.2 million, subscription and services revenue of $570.2 million, adjusted expenses of $975 million, assets on platform of $377 billion, and the INTX and Deribit integration warning
• TheStreet, LIVE: Coinbase Q3 2026 earnings call (October 29, 2026), secondary source for diluted earnings per share of $2.51, the profit rising from $432.6 million a year earlier and reversing a $359.5 million second quarter loss, and the share price moves on October 29
• BeInCrypto, Coinbase Posts Surprise Profit as Insiders Plan $2 Billion Share Sales: Why Now? (October 29, 2026), secondary source for operating income of $61.7 million, down from $480.5 million, the $715 million gain on crypto held for investment, and the 59% fall in consumer spot trading volume
• TradingKey, Coinbase Q3 2026 Earnings: Crypto Gains Drive a Wide GAAP-Adjusted Profit Gap (October 29, 2026), secondary source for the adjusted EBITDA comparison to $800.7 million a year earlier, the 82% quarterly compound growth in prediction markets revenue, and the 179% compound annual growth in derivatives trading volume