Coinbase Global (Nasdaq: COIN) posted third-quarter net income of $719 million, up 66% from a year earlier, as gains on its cryptocurrency investments and rapid growth in its prediction markets business helped offset a pronounced slowdown in trading activity.

The quarterly figures showed a divergence between the exchange's top and bottom lines. Total revenue came in at $1.22 billion for the three months ended September 30, down 35% year on year, while transaction revenue fell 44% to $590.2 million amid subdued activity across cryptocurrency markets.

A large share of the quarter's profit came from the company's cryptocurrency holdings. The reported earnings included a $715 million gain on cryptocurrency investments. Excluding investment gains and related adjustments, Coinbase reported adjusted net income of $77.7 million — a gap that underscores how much of the quarter's reported profitability rested on the changing value of the company's crypto assets rather than on customer activity alone.

Prediction markets, where users trade contracts tied to the outcomes of real-world events, stood out as one of the fastest-growing parts of the business. The segment surpassed $200 million in annualized revenue, doubling from approximately $100 million recorded in the previous quarter. According to Bernstein analysts, prediction markets and derivatives together accounted for about 25% of transaction revenue in the period, helping to cushion the impact of weaker spot trading.

Subscription and services revenue contributed $570.2 million, representing 49% of net revenue, as Coinbase continues to build out income streams beyond its core trading operations. Stablecoin revenue — earned on the reserves that back dollar-pegged tokens — remained a key component of that segment, reaching $328 million, an increase of 3% from the previous quarter. With recurring income now close to half of net revenue, its trajectory has become a central gauge of how far the company's shift away from trading fees has progressed.

Taken together, the results underscore Coinbase's ongoing efforts to diversify its revenue base as trading activity across crypto markets weakens. Prediction markets, derivatives, and stablecoin services are playing an increasingly prominent role in the company's business mix, reducing its reliance on transaction fees tied to spot trading volumes.

The company also recorded its fourth consecutive quarter of crypto trading market-share gains, with its share reaching 10.7% in the third quarter. Coinbase disclosed the results in its third-quarter 2026 earnings report. Upcoming quarterly disclosures will show whether the prediction-markets momentum and the growing weight of recurring revenue continue alongside any recovery in spot trading volumes.