Coinbase, the largest US crypto exchange, reported net income of $719 million and adjusted EBITDA of $333 million for the third quarter of 2026 on 29 October 2026, and said its prediction markets had passed $200 million in annualized revenue, according to its Coinbase Q3 2026 earnings release. Fintechbits checked Coinbase’s Form 10-Q for the quarter: total revenue was $1.216 billion, down 35% from $1.869 billion a year earlier, and transaction revenue fell 44% to $590 million, figures the earnings release does not state. Adjusted net income was $78 million, far below the headline profit.

What the Coinbase Q3 2026 release leads with

The Coinbase Q3 2026 release is built around diversification. Subscription and services revenue made up 49% of net revenue. Paid Coinbase One subscribers hit a record, up 24% from a year earlier, and Coinbase says they bring 3.5 times the average revenue per user. Its average daily loan book reached a record, up 74%. Tokenized stock volume on Base passed $1 billion since launch.

Prediction markets are the new line. Coinbase says revenue has grown 82% a quarter, compounded, since launch, and that daily traders rose more than 60% from the second quarter. Chief executive Brian Armstrong called it one of “the fastest-growing products in Coinbase history”.

USDC remains the quiet earner. Coinbase held an average of $22 billion of USDC in its products, about 30% of the coin’s average market cap, and says it captured roughly 50% of all USDC economics over the past year. Coinbase is also pushing USDC into payouts, as in its Thunes stablecoin deal.

What the filing adds

The 10-Q explains the gap between the $719 million profit and the $78 million adjusted figure. Coinbase booked $715 million of gains on crypto assets it holds for investment, against operating income of just $62 million, and adjusted earnings strip those gains out. Revenue is the cleaner read on the business, and it fell. Consumer transaction revenue dropped to $450 million from $844 million a year earlier.

Coinbase Q3 2026 market share rose in a quarter when its own consumer trading revenue almost halved, which implies rivals’ volumes fell further still. Coinbase’s release calls it “a softer crypto market”.

Fintechbits analysis

Why the Coinbase Q3 2026 mix matters more than the profit

The useful Coinbase Q3 2026 number is 49%. Half of net revenue now comes from subscriptions, staking, interest and USDC rather than trading fees, and that half held up while trading fell. Prediction markets add a product that trades on sports and events as well as crypto prices, which CFO Alesia Haas called “less correlated to crypto volatility”.

The headline profit is the weak spot of Coinbase Q3 2026. Gains on Coinbase’s crypto holdings produced a profit that dwarfs operating income, and the same holdings can swing the other way the next quarter, as they did in the second quarter, when Coinbase reported a net loss. Readers should treat adjusted EBITDA of $333 million as the run-rate figure, not $719 million.

Competition for the new lines is real. Dedicated event-contract exchanges were there first, and Coinbase’s own October work with Ripple’s stablecoin, which Fintechbits covered, shows how crowded stablecoin distribution has become. In Fintechbits’ view, Coinbase is diversifying faster than its trading business is shrinking, but leaving total revenue out of the release suggests management knows which number looks worse.

Frequently asked questions

What were Coinbase’s Q3 2026 results?

Coinbase reported net income of $719 million, adjusted net income of $78 million and adjusted EBITDA of $333 million for the third quarter of 2026. Its 10-Q shows total revenue of $1.216 billion, down 35% year on year.

How big were Coinbase prediction markets in Q3 2026?

Coinbase says its prediction markets passed $200 million in annualized revenue in the third quarter of 2026, with revenue growing 82% a quarter, compounded, since launch.

Why was Coinbase’s net income so much higher than adjusted net income?

The difference mostly reflects $715 million of gains on crypto assets Coinbase holds for investment, which count in net income but are excluded from adjusted figures, according to its 10-Q filing.

What to Watch Next

After Coinbase Q3 2026, the fourth-quarter test is whether subscription and services revenue keeps growing if crypto prices stall. If prediction markets and USDC income lift that line above half of net revenue while transaction revenue stays near $590 million, Coinbase’s diversification story holds without help from investment gains.