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.
Summary
- Coinbase reported $1.22 billion in third-quarter revenue, down 35% from the same period in 2025.
- Net income reached $719 million, although unrealized cryptocurrency investment gains accounted for $715 million.
- Prediction markets exceeded $200 million in annualized revenue, with daily traders growing more than 60% during the quarter.
- Coinbase’s cryptocurrency trading market share rose to 10.7%, its fourth consecutive quarterly gain.
- Average USDC holdings reached a record $22 billion, while paid Coinbase One subscribers grew 24% year over year.
Revenue fell from $1.87 billion a year earlier as cryptocurrency trading remained subdued, according to the company’s October 29 earnings release. Net income rose 66% from $433 million, ending three consecutive quarters of reported losses.
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.
Coinbase earnings show weaker trading revenue
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.
Despite those annual declines, subscription and services revenue grew 3% from the second quarter and accounted for 49% of net revenue.
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.
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.
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.
Prediction markets reach $200 million annualized revenue
Coinbase’s prediction markets business emerged as one of its fastest-growing products, passing $200 million in annualized revenue during the quarter.
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.
In July, crypto.news examined the rapid growth of the exchange’s prediction markets after annualized revenue reached $100 million within two months.
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.
“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.
Haas described prediction markets as a revenue source less closely tied to cryptocurrency price volatility.
Coinbase market share climbs as USDC holdings reach record
Although trading revenue declined, Coinbase reported a 10.7% share of global cryptocurrency trading volume, supported by gains in spot and derivatives markets.
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.
Coinbase’s share of cryptocurrency assets held on its platform returned to 12.5% of the total market capitalization.
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.
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.
The average daily loan book balance increased 74% over the same period.
Tokenized stock trading on Base crosses $1 billion
Coinbase continued expanding beyond cryptocurrency spot trading, reporting more than $1 billion in cumulative tokenized stock trading volume on its Base network since launch.
Its tokenized stock rollout began in August with products linked to Apple, Nvidia, Meta and Alphabet, backed by underlying shares through a custody arrangement.
In September, six additional stock tokens joined the initial offering, including securities linked to Amazon, Microsoft and Tesla. The products remain restricted to eligible investors outside the United States.
The exchange’s stock tokens have since gained uses beyond trading. Morpho introduced USDC lending markets for five of the assets, allowing eligible holders to pledge tokenized equities as collateral.
Coinbase said its quarterly average USDC holdings had now reached record levels for 14 consecutive quarters, while tokenized stock activity continued growing across Base.
