Coinbase reported third-quarter net income of $719 million, or $2.51 per diluted share, on Thursday, ending two consecutive losing quarters. Analysts had expected a loss of 15 cents per share.
About $715 million of the profit came from gains on cryptocurrency Coinbase holds as an investment. Excluding those and other investment gains, adjusted net income was $78 million.
Total revenue reached $1.22 billion, flat from the second quarter and down 35% year-over-year. Transaction revenue slipped 1% to $590 million but beat analyst expectations of roughly $527 million.
Prediction markets crossed $200 million in annualized revenue, making it one of the fastest-growing products in Coinbase's history, the company said. Daily traders grew more than 60% from the prior quarter, and revenue has compounded 82% per quarter since launch. CEO Brian Armstrong said the product kept "growing even through slower sports months."
Subscription and services revenue rose 3% to $570 million, nearly half of net revenue. Stablecoins contributed $307 million, with average USDC held in Coinbase products hitting a record $22 billion. Paid Coinbase One subscribers reached an all-time high, up 24% from a year earlier.
Coinbase's share of global crypto trading volume rose to 10.7%, its fourth straight quarterly gain. The exchange cut its 2026 adjusted expense guidance by another $100 million at the midpoint, to between $4.15 billion and $4.3 billion. Adjusted EBITDA jumped 60% from the prior quarter to $333 million.
Through October 25, fourth-quarter transaction revenue stood at about $165 million.