Coinbase Q3 Profit Surges 66% to $719M as Prediction Markets Revenue Doubles

What to Know

• Coinbase reported a 66% increase in quarterly net income to $719 million despite declining spot trading volumes and weaker revenue.
• Prediction markets generated over $200 million in annualized revenue, while derivatives contributed significantly to Coinbase’s expanding transaction revenue business.
• Stablecoin revenue reached $328 million as Bernstein maintained its $250 price target, while Coinbase shares closed at $160.59 Thursday.

Coinbase reported a 66% increase in third-quarter net income as prediction markets and stablecoin services strengthened its financial performance. The cryptocurrency exchange earned $719 million, compared with $433 million during the corresponding period in 2025.

According to its third-quarter earnings report released Thursday, Coinbase generated $1.22 billion in revenue despite weaker cryptocurrency trading activity. Revenue remained broadly unchanged from the previous quarter but declined 35% compared with the same period last year.

The company’s earnings included a $715 million gain from cryptocurrency investments, exceeding the $424 million recorded during the previous year. Meanwhile, spot trading volume declined 8% quarter over quarter to $135 billion, reflecting reduced activity across cryptocurrency markets.

Coinbase Prediction Markets Revenue Doubles as Derivatives Strengthen Business

Coinbase’s prediction markets business surpassed $200 million in annualized revenue, doubling from approximately $100 million during the previous quarter. The expansion established prediction markets among the company’s fastest-growing products, according to CEO Brian Armstrong. Armstrong explained that cryptocurrency contracts supported prediction market activity even during periods of reduced sports-related trading.

Bernstein analysts identified prediction markets and derivatives as important contributors to Coinbase’s transaction revenue during the quarter. Their estimates placed these businesses at approximately 25% of transaction revenue, representing nearly 12% of total company revenue.

Meanwhile, derivatives trading volume declined 7% quarter over quarter to approximately $986 billion, compared with an 11% industrywide decline. This performance indicated that Coinbase experienced a smaller contraction than the broader derivatives market during the reporting period.

Additionally, subscription and services revenue increased quarter over quarter, accounting for nearly half of Coinbase’s net revenue. Chief Financial Officer Alesia Haas highlighted the growing contribution of subscription services and prediction markets to the company’s revenue mix. Haas explained that these businesses provided additional income sources with different exposure to cryptocurrency market volatility.

Stablecoin Revenue Reaches $328M as Analysts Maintain Positive Ratings

Stablecoin services also supported Coinbase’s quarterly results, generating $328 million in revenue, representing a 3% increase from the previous quarter. This amount included $21 million associated with USDC held in the company’s corporate balances.

William Blair analysts identified USDC as an important component of emerging cross-border payment systems and tokenized real-world asset settlement. Meanwhile, Bernstein and William Blair maintained their Outperform ratings following Coinbase’s earnings announcement, reflecting their assessments of its business diversification.

Bernstein retained its $250 price target, while William Blair’s valuation analysis suggested a potential share value of approximately $240. Despite the earnings increase, Coinbase shares declined 1.07% on Thursday, closing at $160.59 on the Nasdaq exchange.

Coinbase’s quarterly results showed growing contributions from prediction markets, subscriptions, and stablecoins, alongside declining spot and derivatives trading volumes.