TL;DR
Coinbase reported net income of $719 million in Q3 2026, up 66% year over year, even as total revenue declined 35%.
Prediction markets surpassed $200 million in annualized revenue. Bernstein analysts highlighted the growth of this business and the company’s derivatives operations.
Stablecoin revenue reached $328 million, while spot trading volume fell 8% quarter over quarter to $135 billion.
Coinbase reported net income of $719 million in the third quarter of 2026 , a 66% increase from the $433 million recorded in the same period last year.
The company generated $1.22 billion in total revenue , virtually unchanged from the previous quarter but down 35% year over year.
The results included $715 million in gains from the valuation of cryptocurrencies held for investment , compared with $424 million in the third quarter of 2025. Meanwhile, spot trading volume fell 8% quarter over quarter to $135 billion .
Coinbase Surpasses $200 Million in Annualized Prediction Market Revenue
Coinbase’s prediction markets business surpassed $200 million in annualized revenue , doubling the approximately $100 million recorded in the previous quarter.
Brian Armstrong , the company’s CEO, said the product ranks among the fastest-growing in the exchange’s history . He noted that cryptocurrency-related contracts sustained trading activity even during months with fewer sporting events.
Bernstein analysts estimated that prediction markets and derivatives accounted for approximately 25% of transaction revenue , equivalent to around 12% of total revenue.
Derivatives trading volume declined 7% quarter over quarter to approximately $986 billion , compared with an 11% drop across the broader industry.
Alesia Haas, Coinbase’s CFO, explained that subscriptions and services now account for nearly half of the company’s net revenue . She also noted that prediction markets generate revenue that is less closely tied to fluctuations in the cryptocurrency market.
Stablecoin Revenue Reaches $328 Million
Coinbase generated $328 million in stablecoin revenue , up 3% from the previous quarter. Of that amount, $21 million came from USDC held on its corporate balance sheet.
William Blair analysts said stablecoins, particularly USDC , could transform international payments and play an important role in the settlement of tokenized assets .
Both Bernstein and William Blair maintained their Outperform ratings on Coinbase shares following the earnings release.
Bernstein kept its price target at $250 per share , while William Blair’s valuation estimate stood at approximately $240 .
Coinbase shares, which trade on Nasdaq under the ticker COIN, closed Thursday’s session at $160.59 , down 1.07% .
