- Net income reached $719 million, supported largely by cryptocurrency investment gains.
- Prediction markets surpassed $200 million in annualized revenue, rather than quarterly revenue.
- Average USDC balances reached $22 billion, while subscription services provided 49% of net revenue.
Coinbase earnings showed a return to profit in the third quarter, with net income rising 66% annually to $719 million. Total revenue fell 35% to approximately $1.22 billion as trading activity weakened. A $715 million gain on cryptocurrency investments drove much of the profit, while prediction markets and subscription services provided additional support during the quarter.
Coinbase Earnings Reflect Investment Gains Amid Trading Slump
The October 29 earnings release reported adjusted net income of $78 million, considerably below the headline profit. That non-GAAP measure applies several adjustments, so the difference cannot be attributed solely to cryptocurrency investment gains.
Transaction revenue reached $590 million, while spot trading volume declined 8% from the previous quarter to $135 billion. The exchange nevertheless reported its fourth consecutive quarter of gains in global trading market share, reaching 10.7%.
Coinbase earnings also included $333 million in adjusted EBITDA, up 60% from the second quarter. However, that figure remained below the $801 million recorded a year earlier.
Operating income fell to approximately $62 million from $481 million in the comparable period. Together, those figures show why higher reported profit does not necessarily indicate stronger underlying trading performance.
Coinbase Earnings Highlight Prediction Markets and USDC Growth
Prediction markets exceeded $200 million in annualized revenue, roughly twice the previous quarter’s reported run rate. The figure expresses revenue at a yearly pace; it is not $200 million earned during the quarter.
Management said daily prediction-market traders increased more than 60% quarter over quarter. CEO Brian Armstrong credited cryptocurrency-linked contracts with supporting activity during slower sports months.
Subscription and services revenue reached $570 million, up 3% sequentially but down 20% annually. The segment accounted for 49% of net revenue, a different measure from total revenue.
Stablecoin reporting requires another distinction when reading Coinbase earnings. The quarterly filing classified approximately $307 million as stablecoin revenue, with corporate stablecoin income reported separately.
Including roughly $21 million from corporate balances produces the broader $328 million figure cited in analyst coverage. Average USDC held across products reached $22 billion, up 49% annually, while paid Coinbase One subscribers increased 24%.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
