US Crypto Exchange Coinbase Reports $719M Q3 Net Income as Revenue Falls 35% YoY
Coinbase ends a two-quarter losing streak, primarily due to unrealized gains on held crypto assets; its prediction market annualized revenue surpasses $200 million.
U.S.-based cryptocurrency exchange Coinbase Global Inc. released its third-quarter financial results on October 29, 2026, reporting a net income of $719 million, marking its first profit in a year. However, this profit was largely driven by approximately $715 million in unrealized gains on crypto assets held on its balance sheet. Excluding these investment gains, adjusted net income stood at $78 million.
Despite returning to profitability, Coinbase's core operations faced headwinds. Total revenue for the quarter came in at $1.22 billion, flat from the previous quarter but down 35% year-over-year, in line with market expectations. Transaction revenue slipped slightly to $590 million, reflecting lower trading volumes amid multiyear lows in crypto volatility.
Emerging businesses showed strong momentum. Coinbase's prediction markets surpassed $200 million in annualized revenue, growing at an 82% quarterly compound rate since launch, making it one of the fastest-growing products in the company's history. Subscription and services revenue reached $570 million, accounting for nearly half of net revenue, with stablecoins contributing $307 million. Average USDC held in Coinbase products hit a record $22 billion.
On operational efficiency, adjusted EBITDA jumped 60% quarter-over-quarter to $333 million, extending the company's streak of positive adjusted EBITDA to 15 consecutive quarters. Coinbase also lowered its full-year 2026 adjusted expense guidance midpoint by $100 million to between $4.15 billion and $4.3 billion.