Coinbase (NASDAQ: COIN) flips to $719 million profit on a crypto gain as trading lags

What happened

Coinbase Global, Inc. (NASDAQ: COIN) reported third-quarter net income of $718.7 million, which includes a $715.0 million gain on crypto it holds for investment. It lost $359.5 million in the second quarter and earned $432.6 million a year earlier.

The profit looks much smaller without that gain. Adjusted net income, which leaves out the gain and other items, was $77.7 million, against $420.7 million a year earlier. Operating income was $61.7 million, down from $480.5 million.

Total revenue of $1.2 billion was flat from the second quarter and down 35% from the third quarter of 2025.

Key numbers

Metric	Latest	Change	Source
Net income	$718.7 million	from $432.6 million, +66%	SEC 8-K, Exhibit 99.1
Total revenue	$1.22 billion	from $1.87 billion, -35%	SEC 8-K, Exhibit 99.1
Transaction revenue	$590.2 million	from $1.05 billion, -44%	SEC 8-K, Exhibit 99.1
Adjusted EBITDA	$332.9 million	from $800.7 million, -58%	SEC 8-K, Exhibit 99.1
Adjusted expenses	$975.0 million	from $1.09 billion, -10%	SEC 8-K, Exhibit 99.1
Coinbase Crypto Trading Volume Market Share	10.7%	from 5.6%, +5.1 percentage points	Calculated from SEC 8-K

Read more: Coinbase Global (COIN) company research

Trading revenue stays down while subscriptions grow

Transaction revenue of $590 million fell 1% from the second quarter and 44% from a year earlier. Consumer transaction revenue of $450 million was about flat from the second quarter. Consumer crypto spot volume fell 9%, but growth in prediction markets cushioned the decline.

Prediction markets passed $200 million in annualized revenue. The deck puts compound quarterly growth since launch at 82%.

Subscription and services revenue of $570 million rose 3% from the second quarter but is down 20% from a year earlier. It made up 49% of net revenue. Stablecoin revenue of $307 million rose 5% from the second quarter. Higher interest rates helped, and so did an all-time high in average USDC held in Coinbase products.

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Where the savings come from

Adjusted EBITDA, a non-GAAP measure, rose 60% from the second quarter to $332.9 million, a $125.1 million increase. It is still 58% below the $800.7 million of a year earlier. The company calls it the 15th straight quarter of positive adjusted EBITDA.

Costs did the work. Adjusted expenses of $975.0 million were 6% lower than in the second quarter and 10% lower than a year earlier. They also came in below the $980 million to $1.08 billion range the company gave in July.

Technology and development spending fell 5% from the second quarter to $447 million. The company credits a full quarter of the May 2026 cost cuts. General and administrative spending fell 11% to $319 million on lower professional services costs.

Coinbase cut its 2026 adjusted expenses outlook again, to $4.15 billion to $4.30 billion. The range was $4.20 billion to $4.45 billion after the second quarter and $4.25 billion to $4.60 billion at the start of the year.

Why it matters

OptimistFi has argued that Coinbase works only if its broader platform keeps customers and margins as trading cycles turn. The quarter supports the customer half of that view. Coinbase's share of crypto trading volume reached 10.7%, up from 5.6% a year earlier and the fourth straight quarterly gain.

Paid Coinbase One subscribers rose 24% from a year earlier to an all-time high. Average USDC held in Coinbase products also hit an all-time high of $22 billion, about 30% of the average USDC market capitalization.

Margins are the harder test, and the market was weak. Total market crypto spot volume fell 6% from the second quarter and derivatives volume fell 11%. Crypto volatility fell 15% to multi-year lows, which the deck says suppressed trading.

Coinbase's own crypto spot volume was $134.5 billion, less than half the $294.3 billion of a year earlier. The share gains came in a smaller market. Total crypto market capitalization rose 37% in the quarter, with prices rebounding in September.

What's next

For the fourth quarter, Coinbase expects transaction revenue of about $550 million to $630 million, which brackets the third-quarter level. It expects adjusted expenses of about $1.01 billion to $1.16 billion, above the third-quarter actual. The company cites higher marketing tied to USDC rewards and performance marketing, plus higher professional services spending.

The INTX/Deribit integration was completed in October. The company expects some near-term volatility in volumes as participants adjust. It also plans to relaunch Coinbase Pro in the fourth quarter.

The fourth-quarter report is the next test. A fifth straight quarter of market share gains would extend the platform argument. Transaction revenue below the outlook range would show the integration volatility the company flagged.

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