Coinbase Q3 Net Income Rises 66% to $719M Despite Revenue Drop
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Coinbase Global booked $719 million in net income for the third quarter of 2026, a 66% increase from the $433 million reported a year earlier, even as trading activity cooled, CoinCentral reported on October 30. The exchange released the results on October 29.
The profit was heavily shaped by market moves rather than operations: $715 million of the reported figure came from gains on cryptocurrency investments. Stripping out investment gains and other adjustments, adjusted net income was $78 million. Total revenue reached $1.22 billion, flat versus the second quarter but 35% below the same period a year earlier.
Key facts
- Net income of $719 million, up 66% year over year; adjusted net income of $78 million.
- Revenue of $1.22 billion, down 35% annually and flat quarter over quarter.
- Adjusted EBITDA of $333 million, up 60% from the second quarter and the fifteenth straight quarter of positive adjusted earnings on that basis.
- Prediction markets passed $200 million in annualized revenue, roughly double the prior quarter’s pace.
- Spot trading volume fell 8% to $134.5 billion, while Coinbase’s share of crypto trading volume rose to 10.7%, its fourth consecutive quarterly gain, according to CoinCentral.
In a separate earnings report covered by Blockonomi, Roblox said it expects fourth-quarter bookings of $1.89 billion to $2 billion, down 10% to 15% year over year, and cited tough comparisons plus the launch of Grand Theft Auto VI as factors that could trim activity. Roblox’s daily active users fell 9% to 138 million, and revenue rose 16% to $1.57 billion. Neither CoinBase nor CoinCentral mentioned Roblox.
Prediction markets and subscriptions lift services
Chief Executive Brian Armstrong described prediction markets as one of the fastest-growing products in the company’s history, according to CoinCentral. Daily users of those markets grew more than 60% during the quarter, and paid Coinbase One subscriptions climbed 24% from a year earlier. Subscription and services income hit $570 million, or 49% of net revenue.
Stablecoin revenue contributed $307 million, up 5% from the second quarter. Counting $21 million earned on corporate USDC balances, the combined figure reached $328 million, with average USDC held through Coinbase products at $22 billion. CoinCentral also noted that the NBA signed a prediction market agreement involving federal regulators and trading platforms, and that Ripple and Robinhood outlined plans for RLUSD, another stablecoin. Those are sector developments reported by CoinCentral, not Coinbase figures.
Trading mix shifts as derivatives slip
Transaction revenue totalled $590 million. Derivatives processing came to about $986 billion, down 7% from the prior quarter. Bernstein analysts estimated that prediction markets and derivatives produced roughly one-quarter of transaction revenue, per CoinCentral. Separately, Crypto.com introduced round-the-clock US derivatives contracts for eligible traders this week.
Why it matters
The quarter shows an exchange whose revenue base is tilting away from spot trading fees toward subscriptions, stablecoins and event contracts, even as headline profit depends on the value of its own crypto holdings. That mix matters for investors comparing Coinbase with peers that still lean on trading volume. Bernstein maintained an Outperform rating and a $250 price target, while William Blair kept an Outperform rating and estimated a value near $240; those are analyst views reported by CoinCentral, not guarantees, and this is not financial advice — crypto markets are volatile and uncertain.
What to watch
Coinbase’s next quarterly update will show whether prediction market revenue holds its pace and whether the fourth-quarter trading share gain extends. Those analyst price targets are the main external markers to check against future results.
Disclaimer: This article is for information only and is not investment, financial or trading advice. Cryptocurrency prices are highly volatile. Always do your own research.
Sources: CoinCentral, Blockonomi
