A $715.0 million gain on crypto the company holds for investment supplied almost all of the profit, leaving adjusted net income of $77.7 million. Analysts had expected a $35 million loss on slightly more revenue than Coinbase reported.
Coinbase reported net income of $718.7 million for the third quarter after Thursday's close, up 66% from $432.6 million a year earlier, while net revenue fell 34% to $1.16 billion. Gains on crypto assets held for investment, net, accounted for $715.0 million of that profit.
Strip those gains and the related tax effects out and adjusted net income was $77.7 million. Adjusted EBITDA was $332.9 million, down 58% from a year earlier though up 60% from the second quarter. Earnings per share were $2.72 basic and $2.51 diluted, against $1.65 and $1.50 in the same quarter of 2025. Total revenue was $1,215.6 million, down 35% on the year.
The same mechanism produced part of last year's profit, on a smaller scale. Gains on crypto held for investment were $423.9 million in the third quarter of 2025, when net revenue was $1.76 billion. This year the gain is larger and the revenue beside it is smaller.
Analysts had been expecting a loss. Yahoo Finance reported that they were looking for a net loss of $35 million on revenue of $1.21 billion. Revenue came in below that estimate and the company posted a profit rather than a loss, on the strength of the mark on crypto it owns rather than on its trading business.
Transaction revenue fell 44% year over year to $590.2 million. Yahoo Finance tied the decline to trading activity at multiyear volatility lows. Subscription and services revenue fell 20% to $570.2 million and supplied 49% of net revenue. Both of the company's main revenue lines were down on the year.
Measured against the previous three months rather than the previous year, the quarter was close to flat on revenue and better on costs. Net revenue rose 1% from the second quarter and total revenue was unchanged, while adjusted EBITDA rose 60%. Coinbase gave no revenue guidance for the fourth quarter.
Prediction markets are the line Coinbase chose to put in the headline of its own results announcement. The product passed $200 million in annualized revenue, the company said, and daily traders rose more than 60% from the second quarter. That is an annualized figure rather than revenue already earned in the quarter, and Coinbase did not say what period it annualized. Co-founder and chief executive Brian Armstrong called prediction markets “one of the fastest-growing products in Coinbase history”.
Chief financial officer Alesia Haas said prediction markets “are adding another revenue stream and are less correlated to crypto volatility”, and that “These businesses make Coinbase more diversified and resilient across market cycles.” Coinbase One paid subscribers reached an all-time high, up 24% year over year, though the company did not give a number.
Prediction markets are expanding while their legal position in the United States is unsettled. Utah charged Kalshi and its two founders with 13 felony counts this week, and by the CFTC's own count the agency has begun proceedings against ten states that have tried to police the venues.
Among the other figures disclosed, adjusted expenses were $975.0 million and stock-based compensation $233.0 million. Coinbase held $8.6 billion of cash and cash equivalents at September 30. The guidance it gave covers costs rather than revenue: adjusted expenses of $4.15 billion to $4.30 billion for the full year, and $1.007 billion to $1.157 billion in the fourth quarter.
Coinbase put its share of crypto trading volume at 10.7% and said its crypto derivatives volume has grown at a 179% compound annual rate over the last two years, a rate the company calculated itself. It finished integrating the Deribit derivatives exchange earlier this month.
Shares fell 2% in extended trading on Thursday and were down 29% for the year as of that session's close, on pace for the stock's worst year since 2022, when it lost 86%. Across the first nine months of 2026, Coinbase still shows a net loss of $34.9 million.
