Coinbase Q3 profit hits $719M as prediction markets top $200M

Coinbase has reported a 35% annual decline in third-quarter revenue to $1.22 billion, even as net income rebounded to $719 million and its prediction markets business passed $200 million in annualized revenue. Summary Coinbase reported $1.22 billion in third-quarter revenue, down 35% from the same period in 2025. Net income reached $719 million, although unrealized cryptocurrency investment gains accounted for $715 million. Prediction markets exceeded $200 million in annualized revenue, with daily traders growing more than 60% during the quarter. Coinbase’s cryptocurrency trading market share rose to 10.7%, its fourth consecutive quarterly gain. Average USDC holdings reached a record $22 billion, while paid Coinbase One subscribers grew 24% year over year. Revenue fell from $1.87 billion a year earlier as cryptocurrency trading remained subdued, according to the company’s October 29 earnings release. Net income rose 66% from $433 million, ending three consecutive quarters of reported losses. However, much of the profit came from a $715 million unrealized gain on cryptocurrency investments. Excluding investment-related gains and other adjustments, Coinbase recorded adjusted net inco...