Key Takeaways
- Coinbase reported $719 million in Q3 net profit, reversing two consecutive quarterly losses, though adjusted net income was just $78 million.
- Coinbase’s crypto trading market share rose to 10.7%, while subscription and services revenue accounted for 49% of net revenue.
- USDC holdings reached a record $22 billion, Coinbase One subscribers increased 24% year over year, and prediction markets surpassed $200 million in annualized revenue.
Coinbase’s Winning Quarter
The company reported adjusted net income of $78 million for the three months ended Sept. 30, reflecting a substantial difference between its headline profit and underlying earnings. The adjusted figure excludes $715 million in gains on cryptocurrency investments, $39 million in other investment gains, and associated tax adjustments.
Coinbase’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) reached $333 million, a 60% increase from approximately $208 million in the second quarter. That marked its 15th consecutive quarter of positive adjusted EBITDA.
Coinbase beat analyst estimates with earnings of $2.51 per share, compared to expectations of a $0.26 loss per share. Shares in COIN were down slightly after hours after finishing the day down just over 1% at a price of $160.59.
The results represented a turnaround from the second quarter, when Coinbase recorded a $359.5 million net loss amid declining cryptocurrency trading activity and investment-related losses. The company had reported a $432.6 million profit in the third quarter of 2025.
Trading activity remained a central focus of Coinbase’s performance. The exchange said its share of cryptocurrency trading volume increased to 10.7%, up from 10.3% in the preceding quarter and 9.1% in the first quarter. The latest gain marked four consecutive quarters of expanding market share.
Coinbase attributed the improvement to stronger positions in spot and derivatives trading, including perpetual futures, options, and other products. Its cryptocurrency derivatives trading volume has grown at a compound annual rate of 179% over the past two years.
Meanwhile, subscription and services revenue accounted for 49% of Coinbase’s net revenue during the quarter, compared with 48% in the preceding three months. The growing contribution from these businesses underscores the company’s efforts to reduce its dependence on volatile cryptocurrency trading fees.
Stablecoins remained another important source of business activity. Average holdings of USDC across Coinbase products reached a record $22 billion, increasing 49% from a year earlier and representing approximately 30% of the stablecoin’s average market capitalization.
Coinbase also reported that its assets under custody and other assets on its platform represented 12.5% of the total cryptocurrency market capitalization, returning to a previous peak.
The company highlighted accelerating adoption of newer products, including prediction markets, which exceeded $200 million in annualized revenue during the quarter. Daily prediction market traders increased more than 60% from the second quarter.
Paid subscribers to Coinbase One also reached a record, increasing 24% year over year. Coinbase said these customers generate 3.5x more average revenue per user than its broader customer base.
“We delivered growth across key profitability measures in Q3, including our 15th consecutive quarter of positive adjusted EBITDA,” said Alesia Haas, Chief Financial Officer. “Subscription and services revenue grew quarter over quarter and now represents nearly half of net revenue. Prediction markets are adding another revenue stream and are less correlated to crypto volatility. These businesses make Coinbase more diversified and resilient across market cycles.”
