Coinbase Profit Jumps on Crypto Gains as Trading Slows

Coinbase reported third-quarter 2026 net income of $719 million, up 66% year on year, reversing two quarterly losses. But the headline profit relied heavily on a $715 million pre-tax gain from crypto holdings; adjusted net income excluding those gains was $78 million. Revenue fell 35% to $1.216 billion, operating profit dropped 87% to $61.7 million, and trading revenue declined 44% to $590 million as spot volumes weakened and monthly transacting users fell from 9.3 million to 7.4 million. Subscription and services revenue decreased 20% to $570 million, although it accounted for a larger share of revenue. USDC-related income was comparatively resilient as average USDC held across Coinbase products reached a record $22 billion, but lower interest rates weighed on returns. Coinbase also said prediction markets surpassed $200 million in annualized revenue, adjusted EBITDA rose 60% quarter on quarter to $333 million, and it cut its 2026 adjusted expense forecast by $100 million. The filing disclosed Rule 10b5-1 stock-sale plans covering up to 13.59 million shares for CEO Brian Armstrong, co-founder Fred Ehrsam and President Emilie Choi. The plans have price conditions and future execution windows, so they do not signal immediate sales, but their scale may concern investors. Coinbase shares fell about 4.8% in pre-market trading after the results; an earlier report noted a 1.1% daily decline. For crypto traders, Coinbase’s results underline its exposure to crypto prices and trading activity, while highlighting the growing role of stablecoin revenue.