Coinbase Global (NASDAQ: COIN) earned $718.7 million in net income for the quarter ended September 30, 2026, its latest Form 10-Q shows. A $715.0 million fair value gain on the exchange operator’s own crypto holdings drove the result as trading revenue fell.
The Brief
- Coinbase reported diluted earnings of $2.51 per share, up from $1.50, while operating income shrank to $61.7 million from $480.5 million.
- Transaction revenue fell 44% to $590.2 million as consumer crypto spot trading volume dropped 59% year over year.
- Adjusted EBITDA, a non-GAAP measure that excludes crypto investment gains, fell to $332.9 million from $800.7 million.
- Monthly transacting users slipped to 7.4 million from 9.3 million, which the company tied to fewer trading users.
Crypto gains carried a weaker trading quarter
The profit came mostly from below the operating line. Coinbase booked the investment gain on fair value remeasurement of mainly Bitcoin and Ethereum, according to the quarterly filing. Total revenue slipped to $1.2 billion from $1.9 billion a year earlier. A 12.8% effective tax rate, helped by the closure of a federal audit of tax years 2020 and 2021, also lifted the bottom line.
The stablecoin takeover is happening on Coinbase. We now hold more USDC on our platform than ever. Hitting an average of $22B USDC held in Coinbase products in Q3. https://t.co/npdpyELsKk
— Coinbase 🛡️ (@coinbase) October 29, 2026
Consumer transaction revenue fell 47% to $450.1 million. The new prediction markets product and higher derivatives volume offset part of that drop. Institutional spot volume declined 53%. Over nine months, derivatives revenue from the Deribit acquisition more than covered the institutional spot decline.
Subscription and services revenue held up better, falling 20% to $570.2 million. That line now makes up 49% of net revenue, up from 41%. Stablecoin revenue dipped 5% to $306.9 million. Higher average USDC balances added $84.6 million, and lower interest rates cut $52.8 million.
Blockchain rewards fell 54% to $85.7 million on lower Solana and Ethereum prices. Assets on Platform, the customer crypto and stablecoins Coinbase stores, dropped 27% to $376.6 billion. The company said lower prices drove the decline, partly offset by unit growth, largely in Bitcoin.
Coinbase trims staff and keeps buying back stock
Coinbase cut about 700 jobs under a restructuring announced in May, recording $47.8 million in charges over nine months. The company said the plan will help it “optimize our operations for the AI era.” General and administrative expenses fell 24% to $318.9 million in the quarter. For full-year 2026, Coinbase expects combined technology, marketing, and administrative costs, excluding intangible amortization, to land slightly below 2025.
Coinbase also spent $1.2 billion buying back about 7.1 million Class A shares in the first nine months. It repaid $1.3 billion of 0.5% convertible notes at their June maturity. About $2.0 billion of its $4.0 billion repurchase authorization remains. Cash, cash equivalents, and marketable investments totaled $8.8 billion.
One counterparty produced 27% of total revenue in the quarter, up from 19% a year earlier. The filing does not name it. Coinbase did say it renewed its arrangement with Circle Internet Financial on the same terms. The company listed the renewal as progress on 2026 priorities led by its everything exchange strategy.
The quarter shows Coinbase earning nearly as much from balances as from trades. Subscription and services revenue came within $20 million of transaction revenue. Balance income carries its own costs. USDC rewards paid to customers rose 16% to $129.2 million, so part of the stablecoin gain flows back out.
The Bottom Line
The headline profit, though, rests on the market value of crypto Coinbase holds. That cushion cuts both ways. Over nine months, the same investment line added only $23.2 million, and Coinbase posted a $34.9 million net loss. Shareholders can trace the gap in the filing’s Adjusted EBITDA reconciliation, which strips the crypto gains out.
Two legal fronts moved before the filing. A New York federal court sided with Coinbase on July 30 on claims tied to most transactions in the Underwood class action. Claims on the surviving transactions move to further discovery. On October 29, New Jersey’s securities regulator told Coinbase it intends to rescind its summary penalty and cease-and-desist order over staking services.
