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Coinbase Q3 revenue falls 35% as net income hits $719M

November 5, 2026

Coinbase Global reported third-quarter 2026 total revenue of $1.22 billion, down 35% from a year earlier and roughly flat with the prior quarter, while GAAP net income rose to $719 million. Most of that profit came from gains on crypto the company holds for investment. Adjusted net income was $78 million. Coinbase also said its prediction markets business surpassed $200 million in annualized revenue.

What happened

On October 29, Coinbase published results for the quarter ended September 30, 2026. In its investor release, the company reported net income of $719 million and adjusted net income of $78 million. A reconciliation in that release lists net income of $718.7 million, a $715.0 million gain on crypto assets held for investment, and adjusted net income of $77.7 million. Diluted earnings were $2.51 per share, Decrypt reported.

Total revenue was $1.22 billion, flat from the second quarter and down 35% year over year, according to Decrypt. Yahoo Finance reported net revenue of $1.16 billion, down 34% from $1.76 billion a year earlier. Transaction revenue was $590 million, down 1% from the prior quarter and 44% from a year earlier. Decrypt said crypto volatility had fallen to multiyear lows and that broader market trading volume declined.

Subscription and services revenue rose 3% from the previous quarter to $570 million and represented 49% of net revenue, Coinbase said. Stablecoin revenue was $307 million. Average USDC held in Coinbase products reached a record $22 billion, up 49% from a year earlier. Paid Coinbase One subscribers reached an all-time high, up 24% year over year. The company's share of crypto trading volume rose to 10.7%, a fourth consecutive quarterly gain.

Prediction markets surpassed $200 million in annualized revenue and recorded 82% quarterly compound growth since launch, the company said. Daily traders grew more than 60% from the second quarter. Chief executive Brian Armstrong said the product kept “growing even through slower sports months.”

Why it matters

The reported profit is much larger than the result after investment gains. Net income of $719 million compared with $433 million a year earlier. That is a 66% increase, The Block reported, and Yahoo Finance also put the year-earlier profit at $433 million. After investment gains and related tax effects are excluded, adjusted net income was $78 million, Yahoo Finance noted. Adjusted EBITDA was $333 million, up 60% from the previous quarter and the company's 15th consecutive quarter of positive adjusted EBITDA, according to Coinbase.

The revenue mix shows an effort to depend less on spot crypto trading. Subscription and services were nearly half of net revenue. On the earnings call, chief financial officer Alesia Haas said prediction markets and derivatives together contributed 25% of transaction revenue, according to the call transcript. She also described prediction markets as a revenue stream less tied to crypto volatility.

That shift did not erase the year-over-year drop in trading revenue. Transaction revenue remained far below the year-earlier level even though sequential total revenue held roughly steady. Because Coinbase marks crypto holdings to market, reported earnings can move sharply with asset prices even when customer trading is subdued.

What's next

Coinbase guided fourth-quarter subscription and services revenue of $550 million to $630 million. Transaction revenue through October 25 was about $165 million, and management cautioned against simply extrapolating that figure, Decrypt reported. Decrypt also reported that the company narrowed full-year 2026 adjusted expense guidance to between $4.15 billion and $4.3 billion.

Yahoo Finance reported that Coinbase shares fell more than 13% on Friday, October 30, after the earnings release, during a broader decline in crypto markets.

Sources

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