Coinbase returned to profit in the third quarter, reporting net income of $719 million as gains on the cryptocurrency held on its balance sheet offset weaker trading conditions. The result ended two consecutive quarterly losses, but the exchange’s underlying earnings were far more modest once investment gains were excluded.
Profit Surges as Trading Revenue Slips
The crypto exchange said third-quarter net income reached $719 million, equivalent to $2.51 per diluted share. Analysts had expected a loss of 15 cents per share, according to Zacks.
Around $715 million of Coinbase’s reported profit came from gains on crypto investments held by the company. Adjusted net income, which excluded those and other investment gains, was $78 million.
Total revenue was $1.22 billion, matching estimates. It was unchanged from the second quarter but 35% lower than a year earlier. Transaction revenue, which is tied more directly to trading activity, fell 1% to $590 million. That figure nevertheless exceeded analysts’ estimate of roughly $527 million, as lower volatility contributed to a decline in trading volumes across the broader crypto market.
According to Decrypt, the results mark Coinbase’s return to profitability after a $394 million loss in the first quarter and an estimate miss in the second quarter.
Prediction Markets and Subscriptions Gain Ground
Coinbase’s fastest-growing area was prediction markets, whose annualized revenue surpassed $200 million. The company said daily traders increased by more than 60% from the previous quarter, while revenue had compounded at an 82% quarterly rate since the product launched.
Chief Executive Brian Armstrong said the business continued to grow despite slower sports months. Chief Financial Officer Alesia Haas described prediction markets as an additional source of revenue that is less closely linked to crypto-market volatility.
Subscription and services revenue rose 3% from the prior quarter to $570 million, accounting for nearly half of Coinbase’s total revenue. Stablecoins contributed $307 million of that amount. The average amount of USDC held in Coinbase products reached a record $22 billion.
Paid Coinbase One subscriptions also reached an all-time high, up 24% from a year earlier. Coinbase said its share of global crypto trading volume increased to 10.7%, marking a fourth consecutive quarterly gain.
Costs, Outlook and Market Picture
Coinbase lowered its 2026 adjusted expense guidance by another $100 million at the midpoint, putting the range at $4.15 billion to $4.3 billion after cost reductions announced in May. Adjusted EBITDA rose 60% from the previous quarter to $333 million. Transaction revenue for the fourth quarter stood at about $165 million through October 25.
The company’s shares closed at $160.59 on Thursday, down 1.1% before the earnings release, and were little changed in after-hours trading. The stock remained more than 55% below its 52-week high of $361.40.
Moneyiar market data, recorded at the stated times, showed mixed moves among the tracked digital assets:
- BAS was $0.0169243841, down 1.24% over 24 hours and 7.19% over seven days, as of October 25, 2026, at 22:39 +03:30.
- Billions Network was $0.0139971939, down 0.59% over 24 hours but up 10.04% over seven days, as of September 21, 2026, at 01:39 +03:30.
- Loaded Lions was $0.0011817703, down 2.39% over 24 hours and 3.06% over seven days, as of October 25, 2026, at 22:38 +03:30.
- Propy was $0.3318772943, up 1.7% over 24 hours but down 3.95% over seven days, as of October 25, 2026, at 17:19 +03:30.
