Coinbase Reports $1.216 Billion in Revenue and $719 Million in Net Income in Third Quarter
Key Facts
Coinbase reported total revenue of $1.216 billion in the third quarter of 2026 and net income of $719 million, according to its published results. Revenue was close to $1.229 billion in the second quarter, indicating a broadly flat result quarter on quarter. But net income included a significant impact from unrealized gains on crypto assets the company holds as investments. Adjusted net income was $78 million, highlighting the difference between accounting profit and the adjusted earnings measure. A comparison of revenue with analyst expectations cited in the initial draft was not available, so the results are best assessed through their operating mix and activity trends.
Transaction revenue fell 43% to $590.2 million, compared with $1.05 billion in the same period a year earlier, as market conditions weighed on trading. The company’s presentation showed total crypto-market trading volume fell 10% quarter on quarter, while the average crypto market capitalization was unchanged. Crypto-asset volatility also dropped 15% to its lowest level in several years, which the company said dampened trading activity. By contrast, total crypto market capitalization rose 37% between the end of the second quarter and the end of the third, as prices improved in September. The indicators show two concurrent trends during the period: a recovery in market capitalization and pressure on volatility-driven trading.
Revenue from subscriptions and services helped offset weaker transaction revenue, rising 3% quarter on quarter to $570 million and accounting for 49% of net revenue. Stablecoin revenue increased 5% to $307 million. The average amount of USDC held in Coinbase products also reached a record $22 billion. Chief Financial Officer Alicia Haas said subscriptions and services grew quarter on quarter and came to represent nearly half of net revenue. She added that prediction markets provide another revenue source less tied to crypto volatility.
Annualized revenue from prediction markets exceeded $200 million, while daily traders increased by more than 60% quarter on quarter. The company said more than 50% of contracts traded in the quarter were outside sports. Prediction markets and derivatives together accounted for 25% of transaction revenue, according to the results presentation. Management said growth in this activity and in subscriptions and services helped offset weaker crypto trading. On an adjusted basis, Coinbase posted EBITDA of $333 million, up 60% quarter on quarter, marking its fifteenth consecutive quarter of positive earnings on this measure.
Year over year, net income rose from $432.6 million in the third quarter of 2025 to $718.7 million in the third quarter of 2026, according to figures reported by Reuters. Earnings per share increased from $1.50 to $2.51 over the same period. Total operating expenses fell about 17% to $1.15 billion from $1.39 billion a year earlier, supporting earnings, Reuters reported. Still, the company attributed a large share of quarterly net income to unrealized gains on crypto assets held as investments. After results were announced on October 29, the stock fell 3.3% in after-hours trading; the Associated Press then reported a 13% drop in trading on October 30, amid a broad decline in crypto stocks following a hack of Binance.
For the coming period, Coinbase forecast fourth-quarter subscription and services revenue of between $550 million and $630 million. Transaction revenue was about $165 million through October 25, according to the results presentation. The company also lowered its 2026 adjusted expense outlook range again, to $4.15–4.3 billion. It said the midpoint of the new range implies an annual decline of about 1%. Coinbase set the relaunch of Coinbase Pro for the fourth quarter, with a unified platform for spot, futures, perpetuals, options and equities trading.