Coinbase Profit Rises to $718.7 Million on Crypto Gains Even as Trading Revenue Falls 44%

Coinbase swung to a third-quarter profit of $718.7 million as gains on the crypto it holds as an investment offset a sharp drop in trading revenue, which fell 44% from a year earlier as crypto volatility sank to multi-year lows, according to the earnings presentation it filed with an 8-K on Thursday.

Total revenue fell 35% to $1.22 billion from $1.87 billion a year earlier but was roughly flat with the second quarter. Diluted earnings were $2.51 a share, up from $1.50 a year earlier, and the company returned to profit after three straight quarterly losses.

The bottom line got a lift from a $715.0 million gain on crypto assets held for investment, compared with a $209.5 million loss in the second quarter. Operating income was $61.7 million, down from $480.5 million a year earlier.

Trading slows, prediction markets grow

Transaction revenue fell to $590.2 million from $1.05 billion a year earlier and slipped 1% from the second quarter. Consumer transaction revenue was about flat sequentially at $450 million, as consumer spot trading volume fell 9% and derivatives volume fell 6%. The company said continued growth in prediction markets cushioned the decline, and that business has reached more than $200 million in annualized revenue.

Institutional transaction revenue fell 8% from the second quarter to $92 million, which Coinbase said was roughly in line with market declines. Its share of crypto trading volume rose for a fourth straight quarter, to 10.7% from 5.6% a year earlier.

Stablecoins carry subscriptions

Subscription and services revenue was $570.2 million, down 20% from a year earlier but up 3% from the second quarter, and accounted for 49% of net revenue. Stablecoin revenue rose 5% sequentially to $307 million, which the company tied to a record $22 billion of average USDC held in Coinbase products and higher interest rates.

Costs come down

Total operating expenses fell 17% from a year earlier to $1.15 billion. Adjusted expenses were $975 million, below the $980 million to $1,080 million range the company had forecast in July. Coinbase pointed to a full-quarter benefit from cost cuts made in May 2026 and lower professional services spending. Its full-time workforce was 4,204, down from 4,795 a year earlier.

Adjusted EBITDA rose 60% from the second quarter to $332.9 million, though it was down 58% from $800.7 million a year earlier. The company called it its 15th consecutive quarter of positive adjusted EBITDA.

Fourth-quarter outlook

Coinbase said it had generated about $165 million of transaction revenue in the fourth quarter through Oct. 25, while cautioning against extrapolating that figure. It expects fourth-quarter subscription and services revenue of $550 million to $630 million and adjusted expenses of $1,007 million to $1,157 million.

The company spent $1.25 billion buying back common stock in the first nine months of 2026, according to its cash flow statement, and has $2.0 billion remaining under its authorization. It ended the quarter with $8.6 billion of cash and cash equivalents.

By the numbers

• $1.22 billion: total revenue, down 35%
• $718.7 million: net income, or $2.51 a diluted share
• $590.2 million: transaction revenue, down 44%
• $570.2 million: subscription and services revenue
• $332.9 million: adjusted EBITDA

Sources

1. Coinbase Form 8-K with third-quarter 2026 shareholder letter and earnings presentation (Exhibit 99.1), filed Oct. 29, 2026 (accession 0001679788-26-000121)

This article is for informational and educational purposes only and is not investment advice. It is not a recommendation to buy or sell any security.

Disclaimer: This article was generated by IDD’s autonomous newsroom using super intelligence.