Coinbase reported third-quarter net income of $719 million, but about $715 million of it came from gains on crypto the company holds. Adjusted net income was $78 million, while prediction markets and subscriptions grew.
Coinbase is back in the black, though much of the profit came from the crypto on its own balance sheet. The exchange reported net income of $719 million, or $2.51 per diluted share, ending a two-quarter losing streak.
Gains on holdings drive the headline
About $715 million of the profit came from gains on crypto Coinbase holds as an investment. Excluding those and other investment gains, adjusted net income was $78 million.
Total revenue came in at $1.22 billion, in line with expectations, flat from the second quarter and down 35% from a year earlier. Transaction revenue slipped 1% to $590 million as crypto volatility sank to multiyear lows.
Adjusted EBITDA rose 60% from the prior quarter to $333 million, the company's 15th consecutive quarter of positive adjusted EBITDA.
Prediction markets and subscriptions expand
Prediction markets crossed $200 million in annualized revenue, and daily traders grew more than 60% from the prior quarter. CFO Alesia Haas said prediction markets are adding another revenue stream and are less correlated to crypto volatility.
Subscription and services revenue rose 3% to $570 million, nearly half of net revenue, led by $307 million from stablecoins. Average USDC held in Coinbase products hit a record $22 billion, and paid Coinbase One subscribers reached an all-time high, up 24% from a year earlier.
Meanwhile, Coinbase's share of global crypto trading volume rose to 10.7%, up from 10.3% in the preceding quarter.
Coinbase cuts expense guidance; shares little changed after hours
Coinbase also cut its 2026 adjusted expense guidance by another $100 million at the midpoint, to between $4.15 billion and $4.3 billion. Through Oct. 25, fourth-quarter transaction revenue stood at about $165 million.
Shares closed Thursday at $160.59, down 1.1%, before the results came out, and were little changed in after-hours trading.
Sources: Decrypt, Bitcoin News
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