Coinbase Global, Inc.

(NASDAQ Global Select)
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Slightly Bullish +15

Coinbase reports Q3 rise in profit despite crypto slump

Crypto regulation Earnings report AI-generated analysis

πŸ“‰ Coinbase Q3 revenue plunged 34% year-over-year to $1.16 billion due to a crypto industry slump affecting transaction sales.

πŸ’° Net income reached $719 million ($2.15/share), beating analyst expectations of a $35 million loss, though adjusted net income was only $80 million excluding investment gains.

πŸ“Š Adjusted EBITDA fell 58% to $333 million but rose 60% sequentially from the second quarter.

πŸ“ˆ Transaction revenue dropped 44% to $590 million as crypto volatility reached multiyear lows despite Bitcoin climbing to $83,000.

πŸš€ Prediction markets business surpassed $200 million in annualized revenue with daily traders increasing more than 60% from the previous quarter.

πŸ“‰ Shares sank 2% in extended trading and the stock is down 29% for 2026, marking its worst yearly pace since the 2022 crash.

πŸ—³οΈ Coinbase contributed at least $35 million to political groups and backs Fairshake super PAC to push for clearer digital asset regulations in Washington.

πŸ‘” CEO Brian Armstrong stated prediction markets are one of the fastest-growing products in company history, growing even through slower sports months.

Bullish Signals
  • Coinbase reported net income of $719 million ($2.15/share), significantly beating analyst expectations of a $35 million loss.
  • Adjusted EBITDA rose 60% from the second quarter to $333 million despite a broader annual decline.
  • The company's newer prediction markets business surpassed $200 million in annualized revenue, marking it as one of the fastest-growing products in history.
  • Daily traders on the prediction markets platform increased more than 60% from the previous quarter.
Risk Factors
  • Q3 revenue totaled $1.16 billion, a 34% decline year-over-year driven by a slump in the crypto industry.
  • Transaction revenue fell 44% to $590 million as crypto volatility reached multiyear lows.
  • Adjusted EBITDA fell 58% to $333 million when excluding investment gains.
  • Shares sank 2% in extended trading, and the stock has fallen 29% so far in 2026.
Full Analysis
Coinbase Global (COIN) reported a significant decline in Q3 revenue, totaling $1.16 billion, which represents a 34% drop year-over-year compared to $1.76 billion. This decrease was primarily driven by a slump in the broader cryptocurrency industry that weighed heavily on transaction sales, causing shares to sink 2% in extended trading. Despite the revenue contraction, the company posted a net income of $719 million, or $2.15 per share, surpassing analyst expectations who had forecasted a net loss of $35 million. However, much of this reported profit stemmed from a one-time $715 million gain on cryptocurrency investments. When excluding these investment gains and related tax effects, Coinbase's adjusted net income was significantly lower at just $80 million. Adjusted EBITDA fell 58% to $333 million for the period, though it saw a 60% increase from the second quarter. The company's core transaction revenue dropped 44% to $590 million as crypto volatility hit multiyear lows. Coinbase is actively seeking expansion into new business lines, with its prediction markets business surpassing $200 million in annualized revenue and daily traders increasing by over 60% from the previous quarter. The stock has fallen 29% in 2026 so far, putting yearly performance on pace to be its worst since the 2022 crash. CEO Brian Armstrong highlighted that prediction markets have been one of the fastest-growing products in company history. Additionally, Coinbase remains a major political player, contributing at least $35 million during the current election cycle and backing the Fairshake super PAC to influence clearer digital asset regulations.