Coinbase returns to profitability in the third quarter of 2026. The American exchange announces a net result of $719 million, of which $715 million come from valuation gains on its crypto inv
Coinbase returns to profitability in the third quarter of 2026. The American exchange announces a net result of $719 million, of which $715 million come from valuation gains on its crypto investments. A performance that hides a less favorable commercial activity. Transaction revenues fell by 44% year-on-year, while the adjusted net profit reached only $78 million.
Coinbase published its results on October 29. After three consecutive quarters of losses, the platform returns to a net profit of $718.7 million, compared to $432.6 million a year earlier. The contrast is significant. In February, Cointribune already reported a quarterly loss of $667 million at Coinbase, caused notably by a slowdown in transactions.
This time, the figures are back in the black. However, the main driver does not come from the fees charged to 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 selling these cryptocurrencies.
The distinction is clearly visible in the accounts. Once the gains on crypto assets are removed, along with other financial elements and their tax effects, the adjusted net profit falls to $77.7 million. In the second quarter, Coinbase had recorded a net loss of $359.5 million.
The recovery is therefore real from an accounting perspective, even if its main component depends on the valuation of the investments. Another less visible figure: in 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 of the year.
Your 1st cryptos with CoinbaseThis link uses an affiliate program.The commercial activity tells another story. Coinbase achieved $1.22 billion in revenue in the third quarter. The amount remains practically stable compared to the previous three months, but falls by 35% year-on-year.
Transaction revenues reached $590.2 million, compared to $1.05 billion in the third quarter of 2025. A 44% decrease. Retail clients generated about $450 million in commissions and other transactional revenues. 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, the spot crypto volumes of its retail clients fell by 59% year-on-year.
The platform nevertheless retains a growing share of the global market. Its share in crypto trading volumes reaches 10.7%, compared to 5.6% a year earlier. Coinbase is therefore gaining ground against its competitors, despite an overall lower activity.
Other revenues resist better. Subscriptions and services bring in $570 million, up 3% over the quarter. They now represent 49% of the company’s net revenues. Stablecoins are an important source of income, with about $307 million. Average holdings in USDC held in Coinbase products reached a record $22 billion. Meanwhile, operating expenses fell by 17% year-on-year, to $1.15 billion.
Coinbase is accelerating its diversification beyond traditional trading. Prediction markets now play an important role in this strategy. The company had already launched its prediction markets in the United States with Kalshi, opening the trading of contracts linked to sports, economic and political events.
The commercial start is fast. In the third quarter, this activity exceeds $200 million in annualized revenue. This is a revenue pace calculated from recent performance, and not $200 million actually collected during the quarter.
The number of daily traders on 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.
The number of paying Coinbase One subscribers increased by 24% year-on-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 remain cautious, however. After the results publication, the Coinbase stock lost about 3.3% in after-hours trading on Wall Street, according to Reuters.
The $719 million profit therefore did not immediately convince the market. Coinbase ends the quarter with significant crypto gains, declining trading revenues and new products that are starting to generate income. The development of stablecoins remains particularly monitored, as Coinbase already observes more than $400 million in stablecoin transfers per hour. The next publication will indicate whether these activities can sustainably support profitability without depending so much on cryptocurrency valuation gains.
