Coinbase Posts $719 Million Q3 Profit on Crypto Holdings; Revenue Falls 35% Year-Over-Year

Coinbase reported third-quarter net income of $719 million, or $2.51 per diluted share, ending a two-quarter losing streak and beating analyst expectations of a 15-cent loss, according to Zacks. Roughly $715 million of the profit came from gains on crypto held as investments; adjusted net income excluding those and other investment gains was $78 million. Total revenue was $1.22 billion, flat sequentially and down 35% from a year earlier. Transaction revenue slipped 1% to $590 million but topped the roughly $527 million analysts expected as crypto volatility hit multiyear lows. Prediction markets crossed $200 million in annualized revenue, with revenue compounding 82% per quarter since launch. Subscription and services revenue rose 3% to $570 million, led by $307 million from stablecoins, with average USDC held in Coinbase products at a record $22 billion. The exchange's share of global crypto trading volume reached 10.7%, its fourth straight quarterly gain. Coinbase cut 2026 adjusted expense guidance by $100 million at the midpoint to $4.15 billion-$4.3 billion. Adjusted EBITDA rose 60% sequentially to $333 million. Shares closed Thursday at $160.59, down 1.1%.