Coinbase returns to profit in the third quarter of 2026. The American exchange announces a net profit of $719 million, of which $715 million comes from valuation gains on its crypto investments. A performance which masks less favorable commercial activity. Trading revenue fell 44% year-over-year, while adjusted net profit reached just $78 million.
In brief
- Coinbase earns $719 million in net profit in Q3 2026.
- The valuation gains from his crypto investments reach $715 million.
- Transaction revenue fell 44% year-on-year to $590 million.
Coinbase returns to profits thanks to its crypto investments
Coinbase released its results on October 29. After three consecutive quarters of losses, the platform returned to a net profit of $718.7 million, compared to $432.6 million a year earlier. The contrast is important. In February, Tremplin.io already reported a quarterly loss of $667 million at Coinbase, caused in particular by the slowdown in transactions.
This time, the numbers are back in the green. The main driver, however, does not come from the commissions collected from traders. Coinbase recorded $715 million in gains on cryptocurrencies it holds for investment. These gains mainly come from the accounting revaluation of its crypto assets. They therefore do not necessarily correspond to profits received after the sale of these cryptocurrencies.
The distinction appears clearly in the accounts. Once gains on crypto assets, other financial items and their tax effects are removed, adjusted net income falls to $77.7 million. In the second quarter, Coinbase reported a net loss of $359.5 million.
The recovery is therefore real on an accounting level, even if its main component depends on the valuation of investments. Another less visible figure: over the first nine months of 2026, Coinbase still shows a cumulative net loss of $34.9 million. The exchange has therefore not yet erased all its losses for the year.
Trading revenue falls 44%
Commercial activity tells a different story. Coinbase achieved $1.22 billion in revenue in the third trimester. The amount remains practically stable compared to the previous three months, but fell by 35% year-on-year.
Revenue from transactions reached $590.2 million, compared to $1.05 billion in the third quarter of 2025. A decrease of 44%. Individuals generated approximately $450 million in commissions and other transactional revenue. Institutional clients represent nearly 92 million.
The slowdown in spot trading volumes explains a large part of this development. According to data published by Coinbase, crypto spot volumes from its retail customers decreased by 59% year-on-year.
The platform nevertheless retains a growing share of the global market. Its share in crypto trading volumes reached 10.7%, compared to 5.6% a year earlier. Coinbase is therefore gaining ground against its competitors, despite less overall activity.
Other incomes are holding up better. Subscriptions and services brought in $570 million, up 3% over the quarter. They now represent 49% of the company’s net revenues. Stablecoins are a significant source of revenue, with around $307 million. Average USDC holdings held in Coinbase products reached a record 22 billion. Meanwhile, operating expenses fell 17% year-over-year to $1.15 billion.
Coinbase seeks new growth drivers
Coinbase is accelerating its diversification beyond traditional trading. Prediction markets now occupy an important place in this strategy. The company had already launched its predictive markets in the United States with Kalshi, opening the negotiation of contracts related to sporting, economic and political events.
The commercial start-up is rapid. In the third quarter, this activity exceeded $200 million in annualized revenue. This is a revenue rate calculated from recent performances, and not from 200 million actually collected during the quarter.
The number of daily traders in these markets increased by more than 60% compared to the previous quarter. Coinbase is also developing its derivatives products, loans, Coinbase One subscriptions and stablecoin payments.
Coinbase One paid subscribers increased 24% year-over-year to reach a new record. The platform also has $8.6 billion in cash and cash equivalents at the end of September.
These resources allow it to continue its investments despite the slowdown in crypto transactions. Investors, however, remain cautious. After the results were released, Coinbase shares lost about 3.3% in after-hours trading on Wall Street, according to Reuters.
The profit of $719 million was therefore not enough to immediately convince the market. Coinbase ends the quarter with strong crypto gains, declining trading revenue and new products starting to pay off. The development of stablecoins remains particularly closely monitored, with Coinbase already observing more than $400 million in stablecoin transfers per hour. The next publication will say whether these activities can sustainably support profitability without depending so much on cryptocurrency valuation gains.
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