Coinbase returns to profit with $719 million Q3 net income driven by crypto gains
Coinbase posted third-quarter net income of $719 million, rebounding from a prior-quarter loss primarily due to roughly $715 million in crypto investment gains as prediction markets topped $200 million in annualized revenue.
Coinbase returned to profitability in the third quarter of 2026, posting net income of $719 million and diluted earnings per share of $2.51, reversing a $359.5 million net loss in the second quarter. The earnings recovery occurred even as revenue fell 35% year over year to $1.22 billion amid subdued market trading volatility.[1][2][3][4][6]
The quarter's headline profit was heavily influenced by asset valuation changes. Chief Financial Officer Alesia Haas stated that net income was driven largely by unrealized gains on crypto assets held for investment, which contributed approximately $715 million. By comparison, adjusted net income stood at $78 million, while adjusted EBITDA climbed 60% quarter over quarter to $333 million.[2][3][4][7]
Revenue diversification helped counter the softer spot trading environment. Transaction revenue reached $590 million, while subscription and services revenue brought in $570 million, representing 49% of net revenue. Average USDC balances held across Coinbase products reached an all-time high of $22 billion. However, CryptoSlate reported that stablecoin revenue less rewards expenses fell 16.6% to $177.7 million.[3][4][6][7]
Chief Executive Officer Brian Armstrong highlighted expanding product lines, noting that prediction markets surpassed $200 million in annualized revenue with an 82% quarterly compound growth rate since rollout. Armstrong also confirmed that Coinbase secured Commodity Futures Trading Commission approval to list its own prediction market contracts, while the exchange expanded its total crypto trading volume market share to 10.7% for a fourth consecutive quarterly gain.[2][3][5][6]
Key facts
- Coinbase reported Q3 2026 net income of $719 million and EPS of $2.51, following a $359.5 million net loss in Q2.
- The company's net income included roughly $715 million in gains on crypto assets held for investment, while adjusted net income was $78 million.
- Total revenue stood at $1.22 billion, down 35% year over year and roughly flat from the prior quarter.
- Adjusted EBITDA rose 60% quarter over quarter to $333 million, marking Coinbase's 15th consecutive positive quarter.
- Prediction markets annualized revenue exceeded $200 million, compounding at 82% per quarter, and Coinbase obtained CFTC approval to list its own contracts.
- Average USDC balances in Coinbase products reached an all-time high of $22 billion.
- Coinbase's share of crypto trading volume increased to 10.7%, rising for the fourth consecutive quarter.
- Management lowered its full-year 2026 adjusted expense forecast to $4.15 billion-$4.30 billion from $4.25 billion-$4.60 billion.
Sources · 7 sources
- DE
DecryptArticle ·
Coinbase Swings to $719 Million Q3 Profit on Crypto Gains Coinbase reported third-quarter net income of $719 million, driven largely by gains on its crypto holdings, as revenue held flat at $1.22 billion.
Open source - WB
Wu Blockchain@WuBlockchainPost on X ·
Coinbase Q3 Revenue Falls 35% to $1.22B, Net Profit Rebounds to $719M; Prediction Markets Top $200M Annualized Coinbase reported Q3 2026 revenue of $1.22 billion, down 35% year over year, while net income rose 66% to $719 million, ending three consecutive quarters of losses. Earnings per share reached $2.51, with profits largely driven by unrealized crypto gains. Adjusted net income was $78 million. Meanwhile, prediction markets surpassed $200 million in annualized revenue, with 82% quarterly compound growth since launch. Coinbase's crypto trading market share reached 10.7%, while average USDC holdings hit a record $22 billion.
Open source - UN
UnchainedArticle ·
Coinbase Says Prediction Markets Are Now a $200 Million-a-Year Business Despite a Slow Crypto Quarter Coinbase’s prediction markets business is now bringing in more than $200 million a year on an annualized basis, while the number of paying Coinbase One members grew 24% year over year to an all-time high, the exchange reported on Oct. 29. The quarter also opened a wide gap between Coinbase’s two profit measures. Net income was $719 million , while adjusted net income was $78 million . CFO Alesia Haas said during the company’s earnings presentation that net income was “driven largely by unrealized gains on crypto assets that we hold for investment.” Coinbase had posted a net loss of $359.5 million in the second quarter, according to its earnings deck . Get Unchained’s crypto news in your inbox with the free Unchained Daily newsletter . Prediction Markets Compound Since launch, the product’s revenue has grown at an 82% compound quarterly rate, Coinbase said in its release . Daily prediction traders rose more than 60% from the second quarter, and Haas said that in Q3 “more than 50% of contracts traded were non-sports.” CEO Brian Armstrong said during the same presentation that prediction markets are “one of the fastest-growing products by revenue in Coinbase history.” He added that Coinbase received approval from the CFTC to list its own prediction market contracts, a step he said “will improve our economics.” Coinbase One, the paid tier that removes trading fees, has “grown 5 quarters in a row, even through tough market conditions,” Armstrong said. Coinbase said its subscribers bring in 3.5 times more average revenue per user and keep 4.2 times higher balances than non-subscribers. Revenue Holds at $1.2 Billion “The market backdrop was challenging, but the business is healthy,” Haas said. A 10% market-wide drop in crypto trading volume barely moved Coinbase’s top line, which held at $1.2 billion . Its share of crypto trading volume has now risen for four quarters running, to 10.7% . Adjusted EBITDA came to $333 million , 60% above Q2 and positive for a 15th consecutive quarter, and management lowered its 2026 adjusted expense forecast, to $4.15 billion–$4.3 billion. Revenue from subscriptions and services, which includes stablecoin income, staking rewards and lending, came to $570 million, 3% more than in Q2 and 49% of net revenue. USDC balances in Coinbase products averaged a record $22 billion. Related Listen: Why Kalshi Chose Crypto Perps for Its First Move Beyond Prediction Markets The post Coinbase Says Prediction Markets Are Now a $200 Million-a-Year Business Despite a Slow Crypto Quarter appeared first on Unchained .
Open source - WS
Wall St Engine@wallstenginePost on X ·
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 Income: $718.7M Cuts FY26 Guide: 🔹 Adj. Expenses: $4.15B-$4.30B; from $4.25B-$4.60B Q4 Outlook: 🔹 S&S Revenue: $550M-$630M 🔹 Adjusted Expenses: $1.01B-$1.16B 🔹 Transaction Expense: Mid-teens % of net revenue Other Q3 Metrics: 🔹 Stablecoin: $307M (Est. $314M) 🔴 🔹 Trading Volume: $1.21T 🔹 Assets on Platform: $377B (Est. $318B) 🟢 🔹 Crypto Market Share: 10.7% 🔹 Average USDC Held: $22B Key Updates: 🔹 Crypto Investment Portfolio: $715M net gain on crypto assets held for investment in Q3 🔹 Prediction Markets: $200M+ annualized revenue; 82% quarterly compound growth 🔹 Share Repurchases: 10.2M Class A shares repurchased; $2.0B remaining authorization
Open source - BA
Brian Armstrong@brian_armstrongPost on X ·
We got flying cars, now it's time we get a modern financial system. Let me Coinbase-pill you for a minute. Financial services is a massive industry. All fintech companies combined capture about 4% of total global financial-services revenues, while traditional financial-services companies account for the remaining ~96%. Yet the financial services industry is going through two massive technological shifts right now with crypto and AI. This is our opportunity, and the transformation is happening fast. Crypto is replacing the rails: stablecoins let anyone move money anywhere, instantly and almost free; tokenization lets anyone own any asset; and onchain markets let them trade it around the clock. AI is replacing the interface: agents will increasingly research, decide, execute, and pay on behalf of people and businesses, putting a capable financial expert in everyone's pocket that can act for you, not just advise you. Together they can give every person and business the financial power that used to belong to a few. Coinbase exists to make that happen in a way people can trust. Coinbase is using these frontier technologies to build the best modern financial account. Crypto rails, AI interface. Trading, payments, saving, borrowing, etc all in one. We just released our Q3 earnings, and we set product records across the board despite the tough market. And I’m seeing signs that the market is turning. Some Q3 highlights: - We store more crypto than anyone in the world - We have a global regulatory foundation with 80+ licenses - 14th consecutive ATH of average USDC in CB products - 5th consecutive ATH in CB1 subs Best of all, the everything exchange is working. The progress since we announced last year has been awesome: - 4th quarter of crypto trading volume market share gains, nearly doubled since this time last year - $200M+ annualized revenue from prediction markets in Q3, one of our fastest growing products by revenue in history! With >60% daily trader growth QoQ Jobs not finished until the entire financial system is updated with these frontier technologies.
Open source - JM
Jacquelyn Melinek@jacqmelinekPost on X ·
.@Coinbase just reported Q3 earnings with $1.2B in total revenue, flat from Q2, and $719M in net income, up from a $359M loss last quarter. Other key datapoints: - Prediction markets passed $200M in annualized revenue, which Coinbase called "one of our fastest growing products by revenue in history" - More than $1B in tokenized stock volume on @Base since launch - Crypto trading volume market share grew for a fourth straight quarter to 10.7% - Revenue is still down from $1.87B a year ago, with Coinbase pointing to "multi-year lows" in crypto volatility. $COIN closed near $161 today, down about 14% since the end of Q3.
Open source - CR
CryptoSlate@CryptoSlatePost on X ·
Coinbase ($COIN) said average USDC balances hit $22 billion in Q3, while stablecoin revenue less rewards expenses fell 16.6% to $177.7 million. Its $719 million net profit included about $715 million in crypto investment gains. via @hardeyjumoh https://t.co/aq8WTs8VCN
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