Coinbase Returns to Profit—but Nearly All of Its $719 Million Came From Crypto Gains

Coinbase is back in the black after two losing quarters, but the number doing the heavy lifting deserves a closer look.

The exchange reported third-quarter net income of $719 million, or $2.51 per diluted share. That looks like a dramatic operating turnaround at first glance.

In reality, about $715 million came from gains on crypto Coinbase holds as an investment. Strip out investment gains and related adjustments, and adjusted net income was a much more modest $78 million.

Decrypt reports that total revenue landed at $1.22 billion, essentially flat from the second quarter and 35% below the same period a year ago. Transaction revenue slipped 1% to $590 million, although that still beat the roughly $527 million analysts expected during a quarter marked by unusually quiet crypto markets.

The exchange therefore produced a better trading result than analysts expected without getting help from a broad surge in customer activity.

Its reported profit ended a two-quarter losing streak, but the gap between headline and adjusted income shows how much balance-sheet crypto drove the turn.

Revenue held flat from the prior quarter even as transaction revenue softened, while adjusted EBITDA reached $333 million and the company kept costs under tighter control.

Coinbase Swings to $719 Million Q3 Profit on Crypto Gainshttps://t.co/hAMLPL7lpM

— Decrypt (@DecryptMedia) October 29, 2026

The quarter is more interesting than the headline profit alone. Coinbase kept taking market share even as overall activity slowed.

Its share of global crypto trading volume reached 10.7%, the fourth consecutive quarterly increase.

That gain came while industry trading volume was weak, making the market-share move more meaningful than a simple revenue comparison.

The company is also becoming less dependent on trading fees. Subscription and services revenue rose 3% to $570 million, nearly half of net revenue.

Stablecoins supplied $307 million of that total, while average USDC held across Coinbase products reached a record $22 billion.

Prediction markets were the standout. According to Coinbase’s quarterly release, that business has passed $200 million in annualized revenue and has become one of the fastest-growing products in the company’s history despite slower sports months.

Daily traders grew more than 60% from the prior quarter, and revenue has compounded 82% per quarter since launch, giving Coinbase a fee stream that is less directly tied to swings in crypto volatility.

The release also says average USDC held across Coinbase products rose 49% from a year earlier, while paid Coinbase One subscribers set a record.

Coinbase cut its full-year adjusted expense guidance by another $100 million at the midpoint, placing the new range between $4.15 billion and $4.3 billion.

Through October 25, the company had already recorded about $165 million in fourth-quarter transaction revenue.

Subscription and services revenue now sits near half of net revenue, giving Coinbase a larger recurring base when spot-trading volume cools.

Adjusted EBITDA reached $333 million, up 60% from the second quarter and positive for the fifteenth consecutive quarter.

🚨JUST IN: Coinbase $COIN returns to profit with $719 MILLION in Q3 net income.

Its adjusted EBITDA jumped 60% in just one quarter to $333 MILLION, its 15th straight positive quarter.

Prediction markets are now on pace for over $200 MILLION in yearly revenue, one of the… pic.twitter.com/cV0D7tatEF

— Coin Bureau (@coinbureau) October 29, 2026

Paid Coinbase One subscriptions also hit an all-time high, up 24% from a year earlier. Adjusted EBITDA climbed 60% from the second quarter to $333 million, extending the company’s run to 15 consecutive quarters of positive adjusted EBITDA.

There is still a real caution flag here. A business cannot count on unrealized gains from its own crypto holdings to produce $700 million quarters on command.

Shares were already more than 55% below their 52-week high before the report, and the core trading business remains exposed to market activity.

Still, the quarter shows a company building several meaningful revenue engines beneath the volatile headline. Coinbase is taking more trading share, holding more USDC, adding subscribers and turning prediction markets into a serious business.

The $719 million figure mostly reflects investment gains. The durable part of this report is the growth in stablecoins, subscriptions and prediction markets.

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