Coinbase reported third-quarter revenue of $1.22 billion, down 35 percent from a year earlier, as a cooler cryptocurrency market cut trading volumes at the largest US crypto exchange. Revenue narrowly beat Wall Street expectations of about $1.21 billion, according to Zacks, but the headline figures masked a much weaker underlying performance.

Reported net income rose 66 percent from a year earlier to $719 million, yet $715 million of that came from gains on crypto assets the company holds for investment. Adjusted net income, which strips out those investment gains, was just $78 million. Adjusted earnings before interest, tax, depreciation and amortisation reached $332.9 million, the company's fifteenth consecutive quarter of positive adjusted EBITDA, while GAAP earnings of $2.51 a share easily beat a consensus estimate of a 10-cent loss.

The results show how far Coinbase has shifted away from its trading roots. Subscription and services revenue reached $570 million in the quarter, accounting for nearly 49 percent of net revenue, and balances of the USDC stablecoin hit a record $22 billion. Prediction markets passed a $200 million annualised revenue run rate, and the company has folded its Deribit options platform into a single exchange offering perpetuals, options and futures.

Even so, investors focused on the shrinking core. Shares fell after the results and have lost 39.5 percent since the start of the year, according to Zacks, which also noted that analysts have cut their earnings estimates for the fourth quarter of 2026 and the first quarter of 2027 in the past week. With trading volumes still soft and bitcoin stuck below $76,000, the exchange's bet is that subscriptions and newer products can carry growth that spot trading no longer provides.