Coinbase's net profit in the third quarter was 719 million USD, mainly from cryptocurrency holdings income

Cryptocurrency exchange Coinbase announced its third-quarter financial report, achieving a net profit of $719 million, equivalent to a diluted earnings per share of $2.51, ending two consecutive quarters of losses; the market had previously expected a loss of $0.15 per share. Approximately $715 million came from the appreciation of cryptocurrency assets held as investments by the company. After excluding related investment income, the adjusted net profit was $78 million. Total revenue was $1.22 billion, in line with expectations, remaining flat quarter-over-quarter and down 35% year-over-year. Trading revenue decreased by 1% to $590 million, but was above analysts' expectations of about $527 million; during the period, cryptocurrency market volatility fell to a multi-year low, and overall market trading volume declined.

The prediction market business is expected to achieve an annualized revenue exceeding $200 million, becoming one of the fastest-growing products in Coinbase's history. Daily active traders grew by over 60% compared to the previous quarter, with revenue from this business growing at a compound rate of 82% each quarter since its launch. CEO Brian Armstrong stated that the product "continues to grow even during the off-season for sports events." Subscription and service revenue grew by 3% to $570 million, approaching half of net revenue, with stablecoins contributing $307 million; the average amount of USDC held in Coinbase products reached a record $22 billion, and the number of Coinbase One paid subscribers hit an all-time high, growing 24% year-over-year, with its share of global cryptocurrency trading volume rising to 10.7%, marking the fourth consecutive quarter of increase. CFO Alesia Haas stated that the prediction market has provided another revenue source with lower correlation to cryptocurrency volatility.

Coinbase has lowered the midpoint of its adjusted expense guidance for 2026 by $100 million, to $4.15 billion to $4.3 billion, having already implemented cost reductions in May. Adjusted EBITDA grew by 60% quarter-over-quarter to $333 million; as of October 25, fourth-quarter trading revenue is approximately $165 million. In the previous two quarters, the company recorded losses of $394 million and second-quarter results that fell short of expectations. Before the earnings report was released, the stock price closed at $160.59, down 1.1%, with little change in after-hours trading, having fallen over 55% from a 52-week high of $361.4.