Newsletter
- Revenues amounted to $1.22 billion, which met expectations and were flat compared to the previous quarter, but decreased by 35% compared to the same period last year.
- The predicted annual market revenue exceeds $200 million, with subscription and service revenues accounting for nearly half of the net revenue.
- Coinbase has managed to achieve profitability again, but a large portion of that comes from its own crypto assets on its balance sheet.
Coinbase has returned to a profitable state, although a large portion of that revenue comes from the company's own encrypted assets on its balance sheet.
Total revenue amounted to $1.22 billion, in line with market expectations, and remained flat compared to the second quarter, but decreased by 35% from the same period last year. Transaction revenue fell by 1% to $590 million, although it was higher than analysts' forecast of around $527 million; during this period, the volatility in the crypto market dropped to multi-year lows, and the overall trading volume in the market also declined.
The most prominent business is market forecasting. The company stated that the annual revenue from this business has exceeded $200 million, making it one of the fastest-growing products in the history of Coinbase.
Daily active traders have increased by over 60% compared to the previous quarter, and since its launch, business revenue has grown at a compound annual growth rate of 82% on a quarterly basis. CEO Brian Armstrong stated that this product "continues to grow even in months with fewer sporting events."
Subscription and service revenue grew by 3% to $570 million, accounting for nearly half of the net revenue, of which the stablecoin business contributed $307 million. The average holding amount of USDC in the Coinbase product reached a record $22 billion. The number of users of the paid subscription service Coinbase One hit a new high, with a 24% increase compared to the same period last year; at the same time, the exchange's share of global crypto trading volume rose to 10.7%, achieving growth for the fourth consecutive quarter.
After cutting costs in May, Coinbase further lowered the median of its 2026 adjusted expense guidance by $100 million to between $4.15 billion and $4.3 billion. Adjusted EBITDA soared by 60% to $333 million from the previous quarter. As of October 25, fourth-quarter transaction revenue was approximately $165 million.
This positive performance comes after two consecutive quarters of losses. Coinbase incurred a loss of $394 million in the first quarter, and in the second quarter, performance fell short of expectations due to a slowdown in trading activities. However, analysts at the time stated that they were not concerned about the stock's decline.
