Coinbase swings to a $719 million third-quarter profit on crypto investment gains

Coinbase reported net income of $718.7 million for the third quarter on October 29, ending three consecutive quarterly losses, but most of the profit came from gains on the crypto it holds rather than from its trading business, the company's earnings presentation shows.

The numbers

Measure	Q3 2026	Change
Total revenue	$1.216 billion	flat q/q, −35% y/y
Transaction revenue	$590.2 million	−1% q/q
Subscription and services revenue	$570.2 million	+3% q/q
Net income	$718.7 million	vs. a $359.5 million loss in Q2
Adjusted net income	$78 million	—
Adjusted EBITDA	$333 million	+60% q/q

Figures from Coinbase's third-quarter earnings presentation, filed with the SEC.

What drove the profit

The headline profit was driven by $715 million in gains on cryptocurrency investments. Excluding those gains, $39 million in other investment gains and the related $113 million tax effect, adjusted net income was $78 million, according to Coinbase's reconciliation. Adjusted EBITDA rose 60% from the second quarter to $333 million, the 15th consecutive quarter in which it was positive.

Where the business grew

• Market share: Coinbase's share of crypto trading volume rose to 10.7%, from 10.3% in the second quarter and 9.1% in the first.
• USDC: average USDC held across Coinbase products reached a record $22 billion, up 49% from a year earlier. Circle, which issues USDC, reported its own results on November 4.
• Subscriptions and services made up 49% of net revenue, up from 48%.

For the fourth quarter, Coinbase guided subscription and services revenue to $550 million to $630 million.

Why it matters

Coinbase's results show how much its earnings still depend on crypto prices. Gains on its own holdings can swing the bottom line by hundreds of millions of dollars in either direction. The steadier signals are trading volume, market share, and subscription revenue.

What it could mean for traders

For COIN shareholders, the headline profit overstates the quarter's operating performance; Coinbase's adjusted figures, which exclude investment gains, give a closer view of the core business. Shares closed down just over 1% at $160.59 before the release and moved slightly lower after hours, Bitcoin.com News reported. Robinhood, which reported two days earlier, also showed weaker crypto trading than a year ago.