Coinbase posted a $719 million profit for Q3 2026, ending a three-quarter losing streak and beating Wall Street expectations. Total revenue reached $1.22 billion, down 35% year over year, while net income climbed 66%.
Crypto trading revenue, however, plunged 44% year over year to $590 million, underscoring continued volatility and competitive pressure. Subscriptions and non-trading services accounted for 49% of overall net revenue. The number of paying Coinbase One subscribers rose 24% year over year to a record, with average revenue per user 3.5 times higher, balances 4.2 times larger, and long-term trading retention more than 50% higher.
Coinbase’s prediction markets platform reached an annualized revenue run rate above $200 million, with 82% quarterly compound growth and daily trader count growth of over 60% quarter over quarter. CFO Alesia Haas said, “Subscription services and prediction markets have made Coinbase more diversified and resilient across market cycles.”
The stablecoin business also strengthened: average USDC held across Coinbase products hit a record $22 billion, up 49% year over year, generating $307 million in stablecoin revenue, up from $292 million in Q2. Coinbase’s share of global trading volume reached 10.7%, and crypto derivatives trading volume grew at a 179% compound annual growth rate over the past two years.
Still, analysts remain cautious about fee compression. Coinbase lowered trading fees in September amid pressure from rivals such as Robinhood. Mizuho’s Dan Dolev questioned whether it marks “the beginning of a take-rate decline,” while VanEck’s Matthew Sigel warned that fee reductions could hurt the broader ecosystem. JPMorgan sees upside in tokenization, payments and Base, whereas Barclays is more skeptical that newer businesses can offset retail trading and USDC dependence.
