Coinbase Announces Third Quarter Profits of $719 Million, Predicts Annualized Market Revenue to Exceed $200 Million

Despite net profit rebounding to $719 million, Coinbase's revenue in the third quarter still decreased by 35% year-on-year to $1.22 billion; at the same time, its projected annual revenue from its market business has exceeded $200 million.

• Coinbase reported revenue of $1.22 billion in the third quarter, a 35% decline compared to the same period in 2025.
• Net profit reached $719 million, of which $715 million came from unrealized cryptocurrency investment gains.
• Predicted annual market revenue exceeds $200 million, with the number of daily traders growing by over 60% within a quarter.
• The market share of cryptocurrency trading for Coinbase has risen to 10.7%, marking the fourth consecutive quarter of growth.
• The average USDC position reached a record $22 billion, and the number of paid Coinbase One subscription users increased by 24% year-on-year.

According to the financial report released by the company on October 29th, revenue decreased from $1.87 billion a year ago due to the continued sluggishness in cryptocurrency trading. Net profit, however, increased by 66% to $433 million, ending three consecutive quarters of reported losses.

However, the majority of this profit comes from unrealized gains of $715 million from cryptocurrency investments. After excluding investment-related earnings and other adjustments, Coinbase's adjusted net profit is $78 million; the diluted earnings per share are $2.51.

Coinbase Financial reports show weakening transaction revenue

Trading revenue decreased by 44% year-on-year to $590 million, due to reduced spot trading activities that impacted the exchange's core business. Subscription and service revenue also fell by 20% to $570 million.

Despite a year-on-year decline, subscription and service revenue increased by 3% compared to the second quarter, accounting for 49% of net revenue.

Coinbase Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) reached $333 million, a 60% increase from the previous quarter. The company has recorded positive adjusted EBITDA for 15 consecutive quarters.

However, on a year-on-year basis, after the adjustment, EBITDA decreased by 58% compared to $801 million in the third quarter of 2025, and operating profit fell from $481 million to $62 million.

At the financial report conference call, Chief Financial Officer Alesia Haas stated that the total cryptocurrency trading volume in the market decreased by 10% this quarter. However, the situation improved in September, when the total market value of cryptocurrencies rose by 37% compared to the end of June.

Predicted annualized market revenue to reach $200 million

The predictive market business of Coinbase has become one of the fastest-growing products, with annualized revenue exceeding $200 million this quarter.

This figure refers to the income calculated on an annualized basis, not the actual income earned within 12 months. Coinbase indicates that since its launch, the quarterly revenue growth rate of this business has reached 82%, and the number of daily traders has increased by more than 60% compared to the previous quarter.

In July this year, crypto.news reported that the exchange predicted rapid growth in its market business, with its annual revenue reaching $100 million within two months.

By the third quarter, the company stated that customers of the trading prediction contracts also brought in additional spot trading volume, providing another source of activity in addition to traditional cryptocurrency buying and selling.

Coinbase CEO Brian Armstrong stated: "Predictive markets have always been one of the fastest-growing products in Coinbase's history." He pointed out that contracts related to cryptocurrencies also supported trading activity in months with fewer sporting events.

Haas indicates that predicting the market is a source of income that has less correlation with the price fluctuations of cryptocurrencies.

Coinbase market share rises, USDC holding volume reaches a record high

Despite declining transaction revenue, Coinbase reported that its share of the global cryptocurrency trading volume reached 10.7%, thanks to the growth in the spot and derivatives markets.

This data indicates that its market share has been rising for the fourth consecutive quarter. The company stated that the compound annual growth rate of cryptocurrency derivatives trading volume over the past two years has reached 179%.

The proportion of encrypted assets held on the Coinbase platform in the total market capitalization has rebounded to 12.5%.

The average USDC position in the Coinbase products reached a record $22 billion, an increase of 49% year-on-year. The company stated that this figure accounts for nearly 30% of the average USDC market value for this quarter.

The number of paid Coinbase One subscription users has reached a new high, with a growth of 24% compared to a year ago. Company data shows that the average income per of these subscription users is 3.5 times that of regular users, and their account balances are 4.2 times that of other customers.

Average daily loan book balance increased by 74% year-on-year.

The tokenized stock trading on Base has surpassed $1 billion in cumulative volume.

Coinbase continues to expand beyond spot cryptocurrency trading, stating that since its launch, the cumulative trading volume of tokenized stock trading on its Base network has exceeded 1 billion US dollars.

The company began launching tokenized stock products in August, with the first batch of targets including Apple, NVIDIA, Meta, and Alphabet. These products are supported by the corresponding underlying stocks through custody arrangements.

In September, another 6 stock tokens joined the first batch of products, including securities related to Amazon, Microsoft, and Tesla. These products are still limited to qualified investors outside of the United States.

Since then, the uses of these stock tokens have gone beyond merely trading. Morpho has launched a USDC lending market for 5 of these assets, allowing qualified holders to use tokenized stocks as collateral.

Coinbase indicates that its quarterly average USDC holdings have set a record for 14 consecutive quarters, while the tokenization of stocks activities continue to grow on Base.