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Coinbase posts $719M Q3 profit as market share and subscribers grow
The exchange ended two losing quarters, though most of the profit came from gains on crypto it holds rather than from operations.
Key takeaways
- Profit, with a caveat. Headline net income of $719 million was driven mainly by $715 million in gains on Coinbase's own crypto holdings; adjusted net income was $78 million.
- Share gains. Coinbase's slice of global crypto trading volume reached 10.7%, the fourth consecutive quarterly increase, even as market-wide volumes fell.
- Beyond trading. Subscription and services brought in $570 million, nearly half of net revenue, while prediction markets passed $200 million in annualized revenue.
What happened
Coinbase returned to profitability in the third quarter of 2026, reporting net income of $719 million, or $2.51 per diluted share, after two consecutive quarterly losses. The results, released Thursday, landed well above what analysts had forecast, although the two reports on the figures cited different consensus estimates for the expected loss per share. Total revenue was $1.22 billion, in line with expectations, flat compared with the second quarter and 35% lower than a year earlier.
Most of the headline profit came from outside the exchange's core operations. Coinbase recorded $715 million in gains on cryptocurrency it holds as an investment, plus $39 million in other investment gains; stripping out those items and related tax adjustments left adjusted net income of $78 million.
Transaction revenue slipped 1% to $590 million but beat the roughly $527 million analysts had modeled, a period in which crypto volatility sank to multiyear lows and trading volumes across the market declined. Coinbase's share of global crypto trading volume rose to 10.7%, up from 10.3% in the prior quarter and 9.1% in the first quarter, marking a fourth straight quarterly gain. Subscription and services revenue grew 3% to $570 million, about 49% of net revenue, and prediction markets crossed $200 million in annualized revenue.
Why it matters
The quarter illustrates how far Coinbase has moved from a business built mainly on spot trading fees. Its market share expanded even as overall volumes shrank, and nearly half of net revenue now comes from subscriptions and services, a category that includes stablecoin-related income. Prediction markets, which the company described as one of the fastest-growing products in its history, added a stream that is less tied to crypto price swings. Chief financial officer Alesia Haas said those businesses make the company "more diversified and resilient across market cycles." The caveat is that the bottom line remains sensitive to the value of the crypto Coinbase holds on its balance sheet, which supplied nearly all of the quarter's profit.
What the data shows
Adjusted EBITDA reached $333 million, up 60% from about $208 million in the second quarter and the company's 15th consecutive quarter of positive adjusted EBITDA. Average USDC held across Coinbase products hit a record $22 billion, 49% higher than a year earlier and roughly 30% of the stablecoin's average market capitalization, with stablecoins contributing $307 million of subscription and services revenue. Paid Coinbase One subscribers reached an all-time high, up 24% year over year, and the company said those customers generate 3.5 times more average revenue per user than its wider base. Assets under custody and other assets on the platform equaled 12.5% of total crypto market capitalization, back at a previous peak, while derivatives volume has compounded at 179% annually over two years.
Coinbase trimmed its 2026 adjusted expense guidance by a further $100 million at the midpoint, to a range of $4.15 billion to $4.3 billion, after cost reductions made in May. Fourth-quarter transaction revenue stood at about $165 million through Oct. 25.
Background
The profit reverses a difficult stretch. Coinbase posted a $394 million loss in the first quarter and a $359.5 million net loss in the second as trading activity slowed and investment positions lost value. In the third quarter of 2025 the company earned $432.6 million. Shares closed Thursday at $160.59, down 1.1%, before the results were published and were little changed in after-hours trading; the stock is more than 55% below its 52-week high of $361.40.
What to watch
Bitcoin.com News reported that Coinbase faces fresh security questions after a breach at analytics provider Amplitude exposed customer contact information, and said the company was also confronting unverified claims it did not describe. On the business side, the coming quarters will show whether market share gains and subscription growth can offset weak trading revenue if volatility stays subdued, and how much of future profit depends on the fluctuating value of the crypto Coinbase holds.
Questions readers ask
How much of Coinbase's third-quarter profit came from operations?
Adjusted net income, which excludes gains on crypto and other investments and related tax effects, was $78 million. The headline figure of $719 million included $715 million in gains on crypto held as an investment and $39 million in other investment gains.
Did Coinbase beat revenue expectations?
Total revenue of $1.22 billion was in line with expectations and flat versus the second quarter. Transaction revenue of $590 million beat the roughly $527 million analysts expected, while subscription and services revenue rose 3% to $570 million.
What drove Coinbase's market share higher?
The company pointed to stronger positions in spot and derivatives trading, including perpetual futures and options. Its share of global crypto trading volume reached 10.7%, the fourth consecutive quarterly increase.
