TL;DR
- Coinbase reported net income of $719 million in Q3 2026, up 66% year over year, even as total revenue declined 35%.
- Prediction markets surpassed $200 million in annualized revenue. Bernstein analysts highlighted the growth of this business and the company’s derivatives operations.
- Stablecoin revenue reached $328 million, while spot trading volume fell 8% quarter over quarter to $135 billion.
Coinbase reported net income of $719 million in the third quarter of 2026, a 66% increase from the $433 million recorded in the same period last year.
The company generated $1.22 billion in total revenue, virtually unchanged from the previous quarter but down 35% year over year.
The results included $715 million in gains from the valuation of cryptocurrencies held for investment, compared with $424 million in the third quarter of 2025. Meanwhile, spot trading volume fell 8% quarter over quarter to $135 billion.
Coinbase Surpasses $200 Million in Annualized Prediction Market Revenue
Coinbase’s prediction markets business surpassed $200 million in annualized revenue, doubling the approximately $100 million recorded in the previous quarter.
Brian Armstrong, the company’s CEO, said the product ranks among the fastest-growing in the exchange’s history. He noted that cryptocurrency-related contracts sustained trading activity even during months with fewer sporting events.
Bernstein analysts estimated that prediction markets and derivatives accounted for approximately 25% of transaction revenue, equivalent to around 12% of total revenue.
Derivatives trading volume declined 7% quarter over quarter to approximately $986 billion, compared with an 11% drop across the broader industry.
Alesia Haas, Coinbase’s CFO, explained that subscriptions and services now account for nearly half of the company’s net revenue. She also noted that prediction markets generate revenue that is less closely tied to fluctuations in the cryptocurrency market.
Stablecoin Revenue Reaches $328 Million
Coinbase generated $328 million in stablecoin revenue, up 3% from the previous quarter. Of that amount, $21 million came from USDC held on its corporate balance sheet.
William Blair analysts said stablecoins, particularly USDC, could transform international payments and play an important role in the settlement of tokenized assets.
Both Bernstein and William Blair maintained their Outperform ratings on Coinbase shares following the earnings release.
Bernstein kept its price target at $250 per share, while William Blair’s valuation estimate stood at approximately $240.
Coinbase shares, which trade on Nasdaq under the ticker COIN, closed Thursday’s session at $160.59, down 1.07%.
