Coinbase revenue misses estimates as crypto gains lift Q3 profit

Coinbase Global Inc. (COIN) reported third-quarter revenue of $1.22 billion, below the $1.25 billion consensus estimate compiled by Finnhub, and net income of $718.7 million, the company said in an earnings presentation filed on Oct. 29. The net income figure includes a $715.0 million gain on crypto assets held for investment.

The presentation did not report an adjusted per-share figure, so no earnings comparison with the estimate is made here. Here's how the company did:

• Revenue: $1.22 billion vs. $1.87 billion a year earlier
• Diluted EPS: $2.51 vs. $1.50 a year earlier, on a GAAP basis
• Net income: $718.7 million vs. $432.6 million a year earlier
• Adjusted EBITDA: $332.9 million vs. $800.7 million a year earlier

Transaction revenue was $590.2 million, down 44% from a year earlier, according to the presentation. Consumer transaction revenue was $450 million and institutional transaction revenue was $92 million.

Subscription and services revenue was $570.2 million, or 49% of net revenue, and stablecoin revenue was $307 million. The company said annualized prediction markets revenue exceeded $200 million in the quarter.

Adjusted EBITDA, a non-GAAP measure that excludes stock-based compensation, depreciation and amortization, and crypto investment gains and losses, was $332.9 million. That was up 60% from the second quarter and marked the 15th consecutive quarter of positive Adjusted EBITDA.

Revenue has fallen in each of the last three quarters, from $1.87 billion in the third quarter of 2025 to $1.22 billion in the second quarter of 2026, according to its SEC filings.

Expenses and charges

Adjusted expenses were $975 million, below the company's outlook of $980 million to $1.08 billion for the quarter, which it set in July.

Transaction expense was 17% of net revenue, up from 16% in the second quarter. The company recorded a $4.6 million restructuring benefit, compared with $52.4 million of restructuring costs in the second quarter.

The company had 4,204 FTEs, or full-time equivalents, at the end of the quarter, according to the presentation.

Fourth-quarter outlook

For the fourth quarter, the company expects subscription and services revenue of $550 million to $630 million and adjusted expenses of $1,007 million to $1,157 million. It expects stock-based compensation of about $240 million.

The company said it is reducing and narrowing its 2026 adjusted expenses guidance range again.

It also said the INTX and Deribit integration was completed in October, that some near-term volatility in volumes is expected, and that a relaunch of Coinbase Pro is planned for the fourth quarter.

Cash and buybacks

The company had $8.6 billion of cash and cash equivalents at Sept. 30, according to the presentation.

It said it has repurchased 10.2 million Class A shares and has returned more than $2.0 billion to shareholders, with $2.0 billion of remaining buyback authorization.