Coinbase returned to profit in the third quarter, reporting net income of $719 million, or $2.51 per share. Analysts had expected a loss of 15 cents a share.
Almost all of that profit came from the rising value of crypto Coinbase holds as investments, which added about $715 million. On an adjusted basis, which strips out items such as investment gains, net income was $78 million.
The results, reported on Thursday, end a two-quarter run of disappointing numbers that included a $394 million loss in the first quarter.
Revenue under pressure
Total revenue was $1.22 billion, in line with forecasts, flat on the previous quarter and down 35% from a year earlier.
Transaction revenue, the fees Coinbase earns when users trade, fell 1% to $590 million. That was ahead of the roughly $527 million analysts expected, but came as crypto price swings fell to multi-year lows and trading volumes dropped.
Coinbase’s share of global crypto trading volume rose to 10.7%, its fourth quarterly gain in a row.
Steadier income from stablecoins and subscriptions
Subscription and services revenue rose 3% to $570 million, nearly half of all revenue. Stablecoin revenue made up $307 million of that, and the average amount of USDC held on Coinbase products hit a record $22 billion.
Paid Coinbase One subscribers reached an all-time high, up 24% on a year earlier.
Prediction markets grow
Coinbase’s prediction markets business passed $200 million in annualised revenue, with daily traders up more than 60% from the second quarter. Chief executive Brian Armstrong said the product kept “growing even through slower sports months.”
“Prediction markets are adding another revenue stream and are less correlated to crypto volatility,” said chief financial officer Alesia Haas.
Outlook
Coinbase cut its 2026 adjusted expense forecast by $100 million at the midpoint, to between $4.15 billion and $4.3 billion. Fourth-quarter transaction revenue reached about $165 million up to 25 October.
Shares closed Thursday at $160.59 before the results, down 1.1% on the day and more than 55% below their 52-week high of $361.40. They were little changed after hours.
What happens next
The fourth quarter will test how much of Coinbase’s income can come from steadier sources like stablecoins and prediction markets, with trading activity still subdued.
