Coinbase reports Q3 revenue decline amid crypto slump

Coinbase Global ( COIN ) reported a plunge in Q3 revenue as the crypto industry's ongoing slump weighed on transaction sales.

Net revenue totaled $1.16 billion, down 34% from $1.76 billion a year ago. Shares sank 2% in extended trading on Thursday.

The company reported net income of $719 million for the period, or $2.15 per share, compared with a profit of $433 million a year ago. Analysts were expecting a net loss of $35 million and revenue of $1.21 billion.

Much of the profit, however, came from a $715 million gain on cryptocurrency investments. After excluding investment gains and related tax effects, Coinbase reported adjusted net income of just $78 million.

Adjusted EBITDA fell 58% to $333 million, though it rose 60% from the second quarter.

This price reflects trading activity during the overnight session on the Blue Ocean ATS, available 8 PM to 4 AM ET, Sunday through Thursday, when regular markets are closed.

The results come as Coinbase's stock has fallen 29% so far in 2026 as of its Thursday closing price, putting its yearly performance on pace to be its worst since the crypto world's 2022 crash when shares plunged 86%.

The company's transaction revenue, which is closely tied to cryptocurrency trading activity, fell 44% from a year earlier to $590 million as crypto volatility reached multiyear lows while bitcoin climbed from $60,000 to $83,000.

Coinbase has sought to expand into new businesses and product lines as it seeks to build a crypto-centric flavor of the all-in one finance app it and rivals including Robinhood (HOOD) have hotly pursued.

The company said its newer prediction markets business surpassed $200 million in annualized revenue. Daily traders on the platform increased more than 60% from the previous quarter.

"Prediction markets have been one of the fastest-growing products in Coinbase history, growing even through slower sports months driven by crypto contracts where we have a strong right to win," said CEO Brian Armstrong in a press release.

In an initial reaction Mizuho analyst Dan Dolev wrote to clients that Coinbase's results were "better than feared but crypto remains challenged."

Next week's midterm elections will also be crucial for Coinbase, which has poured tens of millions of dollars into political groups as the cryptocurrency industry seeks to strengthen its influence in Washington.

The company contributed at least $35 million during the current election cycle, making it one of the industry's largest political donors, according to a June analysis by Public Citizen.

Coinbase is a major backer of Fairshake, a crypto-focused super PAC that has supported candidates from both parties, as the industry pushes Congress to establish clearer rules for digital assets.