Coinbase Global reported $719 million in net income for the third quarter of 2026, a 66% increase from $433 million a year earlier, even as weaker trading activity reduced revenue. The company released its results on October 29.

Total revenue reached $1.22 billion, unchanged from the previous quarter but down 35% from the same period last year. Growth in prediction markets and subscription and services products provided Coinbase with additional sources of income. The divergence between rising profit and falling revenue shows how much of the quarter’s earnings depended on the value of Coinbase’s own crypto holdings rather than customer trading.

Crypto Investment Gains Boost Net Income

Coinbase’s reported net income included $715 million in gains on cryptocurrency investments. Excluding investment gains and other adjustments, the company reported adjusted net income of $78 million. Under fair-value accounting, price changes in crypto holdings flow directly into reported earnings, which is why the company also discloses adjusted figures that strip out these swings.

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) reached $333 million, up 60% from the second quarter. Coinbase recorded its fifteenth consecutive quarter of positive adjusted EBITDA.

The company’s SEC filing provided the financial results.

Prediction Markets Add Revenue

Coinbase said prediction markets surpassed $200 million in annualized revenue, roughly twice the pace recorded in the previous quarter. Daily users of the products increased by more than 60% during the quarter.

“Prediction markets have been one of the fastest-growing products in Coinbase history,” Chief Executive Brian Armstrong said.

These products let users trade contracts on the outcomes of real-world events. The broader prediction-market sector also drew attention after the NBA signed a prediction-market agreement involving federal regulators and trading platforms.

Paid Coinbase One subscriptions rose 24% from a year earlier. Subscription and services revenue reached $570 million, representing 49% of net revenue — meaning nearly half of the company’s net revenue now comes from outside trading fees.

Derivatives Volume Declines While Market Share Increases

Coinbase processed approximately $986 billion in derivatives trading volume, down 7% from the previous quarter. Separately, Crypto.com introduced round-the-clock U.S. derivatives contracts for eligible traders during the week, adding to competition in the sector.

Spot trading volume declined 8% to $134.5 billion. Despite the lower activity, Coinbase’s share of cryptocurrency trading volume increased to 10.7%, marking its fourth consecutive quarterly gain. Market share is closely watched as a gauge of competitive standing when overall trading activity softens.

Bernstein analysts estimated that prediction markets and derivatives accounted for about one-quarter of transaction revenue. Total transaction revenue was $590 million, while lower spot activity continued to weigh on trading fees.

Stablecoin Revenue Supports Services Business

Stablecoin revenue reached $307 million, up 5% from the second quarter. Including $21 million earned on corporate USDC balances, the combined figure was $328 million. Average USDC held through Coinbase products reached $22 billion.

Competition in dollar-backed digital currencies also continued. Ripple and Robinhood separately outlined plans for RLUSD, another stablecoin, as companies expanded related services.

Bernstein maintained its Outperform rating and $250 price target. William Blair also retained an Outperform rating and estimated a value near $240.

How the company’s mix of trading and non-trading revenue evolves in coming quarters, and whether its market-share gains persist as rivals extend their derivatives offerings, are among the developments to watch in upcoming results.

Source: CoinCentral