Coinbase (COIN) Posts $719 Million Q3 Net Income Against a Loss Forecast

Coinbase Returns to Profit

Coinbase (COIN) swung back into profit in the third quarter of 2026, reporting net income of $719 million, or $2.51 per diluted share, in results published on Thursday. The print clears the bar by a wide margin: estimates compiled by Zacks had anticipated a loss of 15 cents a share. Composition matters as much as the headline, since roughly $715 million of the profit came from gains on the crypto the company holds as an investment, while adjusted net income excluding those marks was $78 million. The company's earnings release carries the full detail.

The market's verdict so far is muted. COINOTAG data puts the stock at $156.51 right now, down 2.68% over 24 hours, after a session range of $155.76 to $163.85. Our composite scoring rates the $156.72 support, formed by the lower Bollinger band and a first-tier pivot, at 100/100, and the $166.74 resistance at 100/100 as well. Momentum readings lean defensive: the daily RSI sits at 36.9 and the trend signal is a downtrend. Perpetual open interest on the name stands near $26.9 million. The post-report price is sitting almost exactly on the strongest support, so a hold at $156.72 versus a push toward $166.74 frames the near-term picture.

Revenue came in at $1.22 billion, in line with expectations, flat from the second quarter and down 35% from a year earlier. Revenue from spot trading and other transaction fees slipped 1% to $590 million, ahead of the roughly $527 million the Zacks consensus sought, even as volatility across crypto markets sank to multiyear lows and overall volume thinned. The crypto exchange's share of global trading volume still rose to 10.7%, a fourth consecutive quarterly gain.

The quarter's standout was prediction markets, which crossed $200 million in annualized revenue and rank among the fastest-growing products in the company's history. Daily traders grew more than 60% from the prior quarter, and revenue in that line has compounded 82% per quarter since launch. CEO Brian Armstrong said the product kept “growing even through slower sports months.”

Subscription and services revenue rose 3% to $570 million, nearly half of net revenue, led by $307 million from stablecoins; average USDC held in Coinbase products hit a record $22 billion. Paid Coinbase One subscribers reached an all-time high, up 24% from a year earlier. The profit reverses a $394 million loss in the first quarter and a second-quarter miss. The company also cut 2026 adjusted expense guidance by another $100 million at the midpoint, to a range of $4.15 billion to $4.30 billion, and adjusted EBITDA jumped 60% quarter over quarter to $333 million, a fifteenth straight positive quarter on that measure. Through 2026-10-25, fourth-quarter transaction revenue stood at about $165 million. Shares closed Thursday at $160.59, down 1.1%, before the release, and traded little in after-hours; the stock sits more than 55% below its 52-week high of $361.40.

Strategy's Record $20.91 Billion Quarter

The same day carried the other half of the corporate Bitcoin story. Strategy, the Bitcoin treasury company built by Michael Saylor, published its own third-quarter results on 2026-10-29 and booked operating profit of $20.91 billion for the quarter ended September 30, the highest quarterly figure in its history and up from $3.89 billion a year earlier. The gain rests on accounting gains from the rise in the value of its Bitcoin assets. Net income came to $19.53 billion, with diluted earnings per share of $44.75.

The reserve itself keeps expanding. Strategy held 848,517 BTC as of 2026-10-25, a 26% increase since the start of the year, a scale that makes it the market's most visible corporate crypto whale. Through 2026 the company has bought $14.33 billion of Bitcoin and raised $21.23 billion of financing in the capital markets. It also disclosed buybacks of about $2.04 billion of its STRC preferred stock, a move it framed as reinforcing that instrument's financial structure, and lifted its dollar-denominated assets to $5.07 billion.

Released within hours of Coinbase's numbers, the two sets of results sketch where crypto profitability sits in late 2026: Coinbase's $715 million of investment gains and Strategy's $20.91 billion of operating profit both flow from balance-sheet exposure rather than from fees, the split we unpack in Blockchain Revenue and Profit: How Networks Actually Make Money. Saylor argued that a new Bitcoin bull market is at its beginning, pointing to growing interest from banks and renewed strength in institutional demand.