Elon Musk

Paid

Base

Meta

<p>Coinbase has reported a 35% annual decline in third-quarter revenue to $1.22 billion, even as net income rebounded to $719 million and its prediction markets business passed $200 million in annualized revenue.</p>
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   <li>Coinbase reported $1.22 billion in third-quarter revenue, down 35% from the same period in 2025.</li>
   <li>Net income reached $719 million, although unrealized cryptocurrency investment gains accounted for $715 million.</li>
   <li>Prediction markets exceeded $200 million in annualized revenue, with daily traders growing more than 60% during the quarter.</li>
   <li>Coinbase’s cryptocurrency trading market share rose to 10.7%, its fourth consecutive quarterly gain.</li>
   <li>Average USDC holdings reached a record $22 billion, while paid Coinbase One subscribers grew 24% year over year.</li>
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<p>Revenue fell from $1.87 billion a year earlier as cryptocurrency trading remained subdued, according to the company’s October 29 <a href="https://investor.coinbase.com/news/news-details/2026/Coinbase-Q3-2026-Earnings-Show-All-time-high-Coinbase-One-Subscribers-and-Prediction-Markets-Surpassing-200-Million-in-Annualized-Revenue/default.aspx" rel="noopener noreferrer nofollow">earnings release</a>. Net income rose 66% from $433 million, ending three consecutive quarters of reported losses.</p>
<p>However, much of the profit came from a $715 million unrealized gain on cryptocurrency investments. Excluding investment-related gains and other adjustments, Coinbase recorded adjusted net income of $78 million, while diluted earnings per share reached $2.51.</p>
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<h2 class="wp-block-heading" id="strong-coinbase-earnings-show-weaker-trading-revenue-strong"><strong>Coinbase earnings show weaker trading revenue</strong></h2>
<p>Transaction revenue fell 44% from a year earlier to $590 million, as lower spot trading activity weighed on the exchange’s core business. Subscription and services revenue declined 20% to $570 million.</p>
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   <p>Q3 highlights ↓<a href="https://t.co/XpoLunK9WI" rel="noopener noreferrer nofollow">https://t.co/XpoLunK9WI</a></p>— Coinbase 🛡️ (@coinbase) <a href="https://x.com/coinbase/status/2115909061694701981?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">October 29, 2026</a>
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<p>Despite those annual declines, subscription and services revenue grew 3% from the second quarter and accounted for 49% of net revenue.</p>
<p>Coinbase’s adjusted earnings before interest, taxes, depreciation and amortization reached $333 million, up 60% from the preceding quarter. The company has now recorded positive adjusted EBITDA for 15 consecutive quarters.</p>
<p>The annual comparison paints a different picture. Adjusted EBITDA fell 58% from $801 million in the third quarter of 2025, while operating income dropped from $481 million to $62 million.</p>
<p>During the earnings presentation, Chief Financial Officer Alesia Haas said cryptocurrency trading volumes across the market fell 10% during the quarter. Activity improved in September, when the total cryptocurrency market capitalization rose 37% from the end of June.</p>
<h2 class="wp-block-heading" id="strong-prediction-markets-reach-200-million-annualized-revenue-strong"><strong>Prediction markets reach $200 million annualized revenue</strong></h2>
<p>Coinbase’s prediction markets business emerged as one of its fastest-growing products, passing $200 million in annualized revenue during the quarter.</p>
<p>The figure represents revenue expressed at a yearly rate, not revenue already earned over 12 months. Coinbase said the business had recorded 82% compound quarterly revenue growth since launch, while daily traders increased more than 60% from the previous quarter.</p>
<p>In July, crypto.news <a href="https://crypto.news/coinbase-prediction-markets-100-million-fastest-product/" rel="noopener noreferrer nofollow">examined the rapid growth</a> of the exchange’s prediction markets after annualized revenue reached $100 million within two months.</p>
<p>By the third quarter, the company said customers trading prediction contracts were generating extra spot trading volume, providing another source of activity beyond conventional cryptocurrency purchases.</p>
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 <p>“Prediction markets have been one of the fastest-growing products in Coinbase history,” CEO Brian Armstrong said, noting that cryptocurrency-linked contracts supported activity during slower sports months.</p>
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<p>Haas described prediction markets as a revenue source less closely tied to cryptocurrency price volatility.</p>
<h2 class="wp-block-heading" id="strong-coinbase-market-share-climbs-as-usdc-holdings-reach-record-strong"><strong>Coinbase market share climbs as USDC holdings reach record</strong></h2>
<p>Although trading revenue declined, Coinbase reported a 10.7% share of global cryptocurrency trading volume, supported by gains in spot and derivatives markets.</p>
<p>The figure represented its fourth consecutive quarter of market share growth. Cryptocurrency derivatives volume recorded compound annual growth of 179% over the previous two years, according to the company.</p>
<p>Coinbase’s share of cryptocurrency assets held on its platform returned to 12.5% of the total market capitalization.</p>
<p>Average USDC held in Coinbase products reached a record $22 billion, up 49% year over year. The company said this represented close to 30% of average USDC market capitalization during the quarter.</p>
<p>Paid Coinbase One subscribers reached another record, growing 24% from a year earlier. Those subscribers generated 3.5 times the average revenue per user and held 4.2 times the balances of other customers, according to company figures.</p>
<p>The average daily loan book balance increased 74% over the same period.</p>
<h2 class="wp-block-heading" id="strong-tokenized-stock-trading-on-base-crosses-1-billion-strong"><strong>Tokenized stock trading on Base crosses $1 billion</strong></h2>
<p>Coinbase continued expanding beyond cryptocurrency spot trading, reporting more than $1 billion in cumulative tokenized stock trading volume on its Base network since launch.</p>
<p>Its <a href="https://crypto.news/coinbase-tokenized-stocks-go-live-on-base-with-backing/" rel="noopener noreferrer nofollow">tokenized stock rollout</a> began in August with products linked to Apple, Nvidia, Meta and Alphabet, backed by underlying shares through a custody arrangement.</p>
<p>In September, <a href="https://crypto.news/coinbase-adds-six-tokenized-stocks-after-228m-debut/" rel="noopener noreferrer nofollow">six additional stock tokens</a> joined the initial offering, including securities linked to Amazon, Microsoft and Tesla. The products remain restricted to eligible investors outside the United States.</p>
<p>The exchange’s stock tokens have since gained uses beyond trading. Morpho <a href="https://crypto.news/morpho-adds-usdc-lending-for-five-coinbase-tokenized-stocks/" rel="noopener noreferrer nofollow">introduced USDC lending markets</a> for five of the assets, allowing eligible holders to pledge tokenized equities as collateral.</p>
<p>Coinbase said its quarterly average USDC holdings had now reached record levels for 14 consecutive quarters, while tokenized stock activity continued growing across Base.</p>
<p>Read more: <a href="https://crypto.news/cz-elon-musk-stop-trolling-binance-hack/" rel="noopener noreferrer nofollow"> CZ fires back at Elon Musk over Binance hack jokes, cites $1B SpaceX stake </a></p>

Coinbase Q3 profit hits $719M as prediction markets top $200M

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