Coinbase reported its third-quarter earnings on October 29, 2026, highlighting strong growth in its prediction markets business. The company revealed that this segment now generates over $200 million annually on an annualized basis. Additionally, the number of paying Coinbase One members increased by 24% year over year, reaching an all-time high.
The quarter also showcased a significant disparity between Coinbase’s two profit measures. Net income soared to $719 million, driven largely by unrealized gains on crypto assets held for investment. In contrast, adjusted net income stood at $78 million. This marks a substantial improvement from the previous quarter’s net loss of $359.5 million.
Coinbase’s prediction markets product has seen remarkable growth since its launch, with revenue increasing at an 82% compound quarterly rate. Daily prediction traders rose more than 60% from the second quarter, and over 50% of contracts traded were non-sports. CEO Brian Armstrong noted that prediction markets are one of the fastest-growing products by revenue in Coinbase’s history. The company also received approval from the CFTC to list its own prediction market contracts, which Armstrong believes will enhance its economics.
Despite a challenging market backdrop, Coinbase’s revenue held steady at $1.2 billion. Its share of crypto trading volume has risen for four consecutive quarters, reaching 10.7%. Adjusted EBITDA came to $333 million, 60% above the second quarter and positive for a 15th consecutive quarter. The company also lowered its 2026 adjusted expense forecast to $4.15 billion, $4.3 billion. Revenue from subscriptions and services, including stablecoin income, staking rewards, and lending, reached $570 million, accounting for 49% of net revenue.