Coinbase earns $719 million in Q3, almost all of it from its own crypto holdings

What happened. Coinbase, the largest US crypto exchange, published its third-quarter 2026 results on 29 October after the market closed. Net income was $719 million, or $2.51 per diluted share. A year ago it was $433 million. According to Decrypt, this ends two loss-making quarters in a row.

Where the profit came from. From the 10-Q filing: gains on crypto Coinbase holds as an investment were $715 million. Adjusted net income, which strips out such gains, was just $78 million. Adjusted EBITDA was $333 million, against $801 million a year ago.

Revenue. Total revenue was $1.22 billion, against $1.87 billion a year ago, down 35%. Transaction revenue, meaning trading fees, was $590 million, against $1.05 billion. Decrypt writes that crypto volatility sank to multiyear lows. Subscription and services brought in $570 million, of which $307 million came from stablecoins.

What is growing. Coinbase's share of global crypto trading volume rose to 10.7%. Average USDC held in Coinbase products hit a record $22 billion. Paid Coinbase One subscribers were up 24% on the year. Prediction markets passed $200 million in annualized revenue.

What is shrinking. Users who trade at least once a month numbered 7.4 million, against 9.3 million a year ago. The company cut its 2026 adjusted expense guidance to $4.15 billion to $4.3 billion.

Our take. Without gains on its own crypto, Coinbase earns little right now: trading is slow, and stablecoins and new products carry revenue. If crypto falls, the same revaluation can work in reverse. This is not advice to buy or sell.

Confirmed facts

• Coinbase's third-quarter 2026 net income was $718.7 million, against $432.6 million a year ago. Diluted earnings were $2.51 a share.^[2]
• Gains on crypto assets held for investment were $715.0 million.^[2]
• Adjusted net income was $78 million and adjusted EBITDA was $333 million.^[1]
• Adjusted EBITDA a year ago was $800.7 million.^[2]
• Revenue was $1.216 billion, against $1.869 billion a year ago. Transaction revenue was $590.2 million, against $1.046 billion.^[2]
• Subscription and services revenue was $570.2 million, including $306.9 million of stablecoin revenue.^[2]
• Monthly transacting users were 7.4 million, against 9.3 million a year ago.^[2]
• Share of global crypto trading volume reached 10.7%, average USDC in Coinbase products hit a record $22 billion, and Coinbase One subscribers rose 24%.^[1]
• Analysts expected a loss of 15 cents a share (Zacks).^[3]
• Prediction markets passed $200 million in annualized revenue.^[1][3]
• Fourth-quarter transaction revenue through 25 October was about $165 million. 2026 adjusted expense guidance was cut to $4.15 billion to $4.3 billion.^[3]

Implications

• ConfirmedCoinbase's profit now depends heavily on the price of the crypto on its balance sheet.
• ConfirmedTrading income is falling along with market activity.
• Our readingIf crypto falls in the fourth quarter, the revaluation could turn into a loss.

Still unknown

• How COIN shares react in Friday's regular session.
• Whether trader activity returns in the fourth quarter.
• Whether prediction markets keep growing this fast.

Who it affects

USA, Worldwide. Coinbase users and anyone who follows crypto exchanges and COIN stock

Sources

1. Coinbase Global, Inc. (press release): Coinbase Q3 2026 Earnings Show All-time-high Coinbase One Subscribers and Prediction Markets Surpassing $200 Million in Annualized Revenue October 29, 2026 · official
2. Coinbase Global, Inc. (10-Q filing): Coinbase Global quarterly report (10-Q) for Q3 2026 October 29, 2026 · official
3. Decrypt: Coinbase Swings to $719 Million Q3 Profit on Crypto Gains October 29, 2026 · media