Coinbase Posts $719M Quarterly Profit as Prediction Markets Surge

The exchange reported $1.22 billion in total revenue for the period ending September 30, a sharp drop from the $1.87 billion recorded in the same quarter of 2025. Transaction revenue fell 44% to $590 million, reflecting lower spot trading volumes across the industry. CFO Alesia Haas noted that broader market activity dipped 10% during the quarter, though interest rebounded in September alongside a 37% surge in total cryptocurrency market capitalization.

Despite the decline in core trading, Coinbase successfully diversified its income streams. Prediction markets stood out as a primary growth engine, with CEO Brian Armstrong highlighting the product as one of the fastest-growing in the company's history. These contracts, which offer an alternative to traditional volatility-dependent trading, saw daily user counts climb more than 60% quarter-over-quarter. Meanwhile, the exchange maintained a 10.7% share of global trading volume, marking its fourth consecutive quarter of expansion.

Financial stability metrics showed mixed results. While adjusted EBITDA dropped to $333 million—down from $801 million a year ago—the company has now posted positive adjusted EBITDA for 15 straight quarters. Platform engagement also reached new highs: average USDC holdings hit a record $22 billion, and Coinbase One subscription numbers rose 24% year-over-year. Beyond standard crypto services, the firm’s Base network surpassed $1 billion in cumulative tokenized stock trading volume, signaling a push into traditional asset classes for non-U.S. investors.