Coinbase reported $1.22 billion in third-quarter revenue, down 35% year over year, while net income climbed 66% to $719 million, according to its October 31 earnings report.

The results ended three consecutive quarters of losses, although unrealized cryptocurrency gains — paper appreciation on crypto the company holds but has not yet sold — drove much of the profit. Adjusted net income, which strips out unrealized crypto gains, reached $78 million, a contrast that quantifies how much of the headline profit rested on market-driven balance-sheet marks.

Alongside the top-line decline, the shareholder letter highlighted a crypto trading market share of 10.7%, platform assets equal to 12.5% of total cryptocurrency market capitalization, prediction markets revenue surpassing $200 million on an annualized basis, and subscription and services revenue making up 49% of net revenue.

Trading Share Extends Gains

Earnings per share came in at $2.51, while adjusted EBITDA reached $333 million — a 60% increase quarter over quarter and the company's 15th consecutive quarter of positive adjusted EBITDA.

Coinbase's crypto trading volume market share rose to 10.7%, marking its fourth consecutive quarterly gain. The exchange added share in both spot and derivatives markets, with derivatives trading volume recording 179% compound annual growth over two years. Share gains carry added weight in a quarter when total revenue is contracting, since they indicate an exchange winning a larger slice of overall trading activity.

Assets on the platform represented 12.5% of total cryptocurrency market capitalization, returning to a previous peak. Coinbase also reported record average USDC holdings of $22 billion, up 49% year over year, representing roughly 30% of average USDC market capitalization. USDC is a stablecoin pegged to the US dollar, so it functions as a dollar-equivalent balance on the platform.

Prediction Markets and Coinbase One

The prediction markets business exceeded $200 million in annualized revenue, posting 82% quarterly compound growth since launch. Daily traders on the platform increased more than 60% quarter over quarter. Prediction markets let users trade contracts on the outcomes of real-world events.

Subscription and services revenue accounted for 49% of net revenue. Paid Coinbase One subscribers hit an all-time high, rising 24% annually. These customers generated 3.5 times higher average revenue per user and held 4.2 times higher balances. Because subscriptions renew on a set schedule, this revenue stream is less tied to day-to-day trading volume than transaction fees.

USDC and Onchain Products

Coinbase's average daily loan book balance rose 74% year over year. Base remained the leading layer-2 network for spot crypto trading and decentralized finance total value locked, while tokenized stock trading volume on Base has exceeded $1 billion since launch. Base is a layer-2 network incubated by Coinbase that settles transactions atop Ethereum at lower cost, and tokenized stocks are blockchain-based representations of traditional equities.

Management Commentary

CEO Brian Armstrong said Coinbase regained its peak assets-on-platform market share. CFO Alesia Haas said subscription and services revenue grew quarter over quarter, and described prediction markets as a revenue source less correlated with cryptocurrency volatility.

The metrics to track in upcoming reports are the same ones this release emphasized: trading share, the subscription share of net revenue, and the growth curve of prediction markets.