Coinbase Q3 Net Income Rises 66% to $719 Million

Coinbase reported $719 million in net income for the third quarter of 2026, a 66% increase from the $433 million recorded in the same period last year. The earnings report, released on October 29, shows a divergence between the company’s bottom line and its top-line performance, as total revenue declined 35% year over year to approximately $1.22 billion.

Prediction Markets Drive New Revenue

Annualized revenue from Coinbase’s prediction markets surpassed $200 million during the quarter, approximately doubling from the previous period. CEO Brian Armstrong described the segment as one of the fastest-growing products in the company’s history. According to Bernstein analysts, prediction markets and derivatives helped offset weaker activity in spot cryptocurrency trading. Together, these businesses accounted for approximately 25% of Coinbase’s transaction revenue.

The growth in these areas supports Coinbase’s strategy to become an “everything exchange,” integrating multiple financial products under a single platform. The expansion into prediction markets and stock trading forms a key part of this wider diversification effort.

Trading Revenue Faces Continued Pressure

Traditional trading operations continued to face headwinds. Transaction revenue fell 43% year over year to approximately $590 million. Spot trading volume declined 8% quarter over quarter to $135 billion. Derivatives trading volume decreased 7% from the previous quarter to approximately $986 billion. Bernstein noted that this decline was smaller than the broader industry’s 11% contraction in derivatives trading.

Subscription and services revenue contributed $570 million, accounting for nearly 49% of net revenue. Stablecoin-related revenue reached $328 million, an increase of 3% quarter over quarter. These figures reflect Coinbase’s efforts to reduce dependence on market-driven trading fees, including through its expanding USDC ecosystem and stablecoin integration strategy.

A $715 million investment gain contributed significantly to the quarterly profit, highlighting the connection between Coinbase’s reported earnings and broader cryptocurrency valuations.