Coinbase Q3 Net Income Rises 66% As Prediction Markets Pass $200 Million In Annualised Revenue

US crypto exchange Coinbase has reported net income of $719 million for the third quarter of 2026, up 66% from $432.6 million a year earlier. Prediction markets passed $200 million in annualised revenue, and paid Coinbase One subscribers reached an all-time high.

Coinbase published the results for the quarter ended 30 September on 29 October 2026.

Net income included a $715 million net gain on crypto assets held for investment. Excluding that gain and gains on other investments, adjusted net income was $78 million.

Adjusted EBITDA rose 60% from the previous quarter to $333 million, Coinbase's 15th consecutive quarter of positive adjusted EBITDA. It was down from $800.7 million in the third quarter of 2025. The quarter follows net losses of $394.1 million in Q1 2026 and $359.5 million in Q2 2026.

Subscription and services revenue grew from the previous quarter and made up 49% of total net revenue.

Coinbase said prediction markets are one of the fastest-growing products by revenue in its history. They passed $200 million in annualised revenue and kept growing through seasonally slower sports months. Prediction markets revenue has grown at a compound rate of 82% per quarter since launch, and daily traders rose by more than 60% quarter on quarter. Coinbase said users who trade predictions also generate additional spot volume.

The figures match the trend at US broker @robinhood , where prediction markets again earned more than crypto in the third quarter. The sector still faces legal challenges, with Utah escalating its fight against Kalshi this week.

Coinbase's share of crypto trading volume reached 10.7%, its fourth consecutive quarter of gains, with increases in both spot and derivatives. Coinbase said stablecoin demand and the move into perpetuals, futures and options supported the gains. Its crypto derivatives trading volume has grown at a compound annual rate of 179% over the past two years, and it leads in open interest in global crypto options.

Competition for US derivatives traders is increasing. OG.com and Crypto.com have launched crypto perpetuals for eligible US traders, and multi-asset fintech group @Plus500 has become the first FCM to offer Kalshi perps to clients.

Assets on platform returned to a peak of 12.5% of total crypto market capitalisation.

Average USDC held in Coinbase products reached a record $22 billion, up 49% year on year. That is the 14th consecutive quarterly record and roughly 30% of average USDC market capitalisation. Coinbase said it captured about 50% of all USDC economics over the past year. It is also widening its stablecoin offering, having added Ripple's RLUSD across its retail, exchange and Prime platforms this week, following its collaboration with Thunes on global stablecoin payments.

Paid Coinbase One subscribers rose 24% year on year. Compared with other users, they generate 3.5 times higher average revenue per user, hold 4.2 times higher balances and have more than 50% higher long-term trading retention.

Coinbase's average daily loan book balance reached an all-time high, up 74% year on year. Tokenised stock volume on Base has passed $1 billion since launch, and Base remains the leading layer 2 network for spot crypto trading and DeFi total value locked.

What The Company Said

Brian Armstrong, Co-Founder and CEO, Coinbase

Brian Armstrong, Co-Founder and CEO, Coinbase said:

"We continued to execute well on things in our control and compound gains. One of our major assets is that we are the most trusted player in crypto and store more crypto than any company in the world, so it was great that we returned to our peak Assets on Platform market share. Prediction markets have been one of the fastest-growing products in Coinbase history, growing even through slower sports months driven by crypto contracts where we have a strong right to win."

Alesia Haas, Chief Financial Officer, Coinbase

Alesia Haas, Chief Financial Officer, Coinbase commented:

"We delivered growth across key profitability measures in Q3, including our 15th consecutive quarter of positive Adjusted EBITDA. Subscription and services revenue grew quarter over quarter and now represents nearly half of net revenue. Prediction markets are adding another revenue stream and are less correlated to crypto volatility. These businesses make Coinbase more diversified and resilient across market cycles."

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