Coinbase Coinbase Global, Inc. (COIN) announced a significant increase in third-quarter net income, reaching $719 million. Analysts noted that growth in its expanding derivatives and prediction markets sectors helped balance out softer spot trading numbers.
Based on the financial report published by the exchange on Thursday, the firm brought in $1.22 billion in total revenue, which was relatively flat compared to the prior quarter but dropped 35% from the same time last year.
Net income climbed 66% annually, moving up to $719 million from $433 million recorded during the corresponding period of the previous year. This performance featured a $715 million profit on investment-held crypto assets, contrasting with a $424 million profit from the year-ago quarter.
The platform’s spot trading volume contracted by 8% sequentially to total $135 billion, though the exchange maintained its market share growth according to the filing.
Prediction markets gain traction
Significantly, the prediction markets business at Coinbase crossed the threshold of $200 million in annualized revenue, marking a doubling from approximately $100 million in the previous quarter.
“Prediction markets have been one of the fastest-growing products in Coinbase history, growing even through slower sports months driven by crypto contracts where we have a strong right to win,” stated Coinbase CEO Brian Armstrong in a Thursday statement.
In a research note distributed on Friday, Bernstein analysts wrote that expansion in subscription and services income alongside prediction markets “helped offset the softer crypto trading activity.”
The analysts calculated that prediction markets alongside derivatives represented roughly 25% of transaction revenue for the company, which translates to about 12% of total revenue.
Bernstein also reported that Coinbase derivatives trading volume dropped 7% quarter over quarter to reach approximately $986 billion, while the broader industry saw a decrease of 11% during the same timeframe.
“Subscription and services revenue grew quarter over quarter and now represents nearly half of net revenue. Prediction markets are adding another revenue stream and are less correlated to crypto volatility,” remarked Coinbase CFO Alesia Haas. “These businesses make Coinbase more diversified and resilient across market cycles.”
Coinbase’s Total Volume (The Block)
Stablecoin momentum
Simultaneously, revenue generated from stablecoins remained a major contributor to the financial results of Coinbase. Stablecoin earnings reached $328 million, representing a 3% sequential increase. That total contained $21 million originating from USDC balances held by the corporation.
On Thursday, analysts from William Blair mentioned that stablecoins—specifically USDC—will transform cross-border transactions and “play a critical role in tokenized RWA settlement.”
Following the earnings announcement, both William Blair and Bernstein reaffirmed their Outperform ratings for Coinbase. While Bernstein kept its price target for Coinbase shares at $250, valuation calculations from William Blair pointed to an estimated stock worth of nearly $240.
Trading on the Nasdaq, shares of Coinbase closed Thursday down 1.07% at $160.59.
Originally published at https://www.theblock.co/news/business/2026-10-30-coinbase-q3-net-income-jumps-432189.
