Markets · Earnings
Coinbase revenue stalls at $1.2 billion as crypto trading cools
Coinbase's third-quarter revenue was flat from the spring and down 35% from a year ago, with stablecoin income now a quarter of the total.
Coinbase, the largest U.S. crypto exchange, took in $1.216 billion of revenue in the third quarter, flat from the second quarter and down 35% from a year earlier, as trading slowed, and stablecoin income now makes up about a quarter of that total [2].
Figure 1. Coinbase total revenue by quarter, US$ millions. Source: Coinbase Ex. 99.1 to Form 8-K [2].
The mechanism
Coinbase earns money two ways. Transaction revenue is fees on trades, and it rises and falls with how much customers trade. Subscription and services revenue includes stablecoin revenue, which Coinbase earns under its arrangement with Circle Internet Financial over USDC, a dollar-pegged token, and which its 10-Q ties to USDC balances held in Coinbase products and to interest rates. It also includes blockchain rewards from staking and interest and finance fee income [2][3]. When trading cools, the second bucket matters more.
The evidence
Transaction revenue was $590 million, down 1% from the second quarter, as "Crypto Asset Volatility reached multi-year lows," and total crypto trading volume across the market fell 10%, the company said [2]. Consumer transaction revenue was $450 million and institutional was $92 million, down 8% [2].
Subscription and services brought in $570 million, 49% of net revenue [2]. Stablecoin revenue was $307 million, up 5% from the second quarter, "driven by new ATH in Average USDC Held in Coinbase Products and higher interest rates," partially offset by balances held off the platform [2]. Average USDC held in Coinbase products was $22 billion [2].
Figure 2. Subscription and services revenue, including stablecoin revenue, US$ millions, and share of net revenue. Source: Coinbase Ex. 99.1 to Form 8-K [2].
Net income was $718.7 million [2]. Most of that came from a $715.0 million gain on "crypto assets held for investment," Coinbase's own crypto holdings marked up to market value [2]. Operating income, the profit from running the business, was $61.7 million [2]. Adjusted EBITDA, a non-GAAP measure that strips out items such as those crypto gains and stock pay, was $332.9 million, up from $207.8 million in the second quarter and down from $800.7 million a year earlier [2].
| US$ millions | Q3'26 | Q2'26 | Q3'25 |
|---|---|---|---|
| Total revenue | 1,215.6 | 1,220.1 | 1,868.7 |
| Net revenue | 1,160.5 | 1,154.3 | 1,762.9 |
| Net income (loss) | 718.7 | (359.5) | 432.6 |
| Adjusted EBITDA (non-GAAP) | 332.9 | 207.8 | 800.7 |
| Stablecoin revenue | 307 | 292 | 325 |
Figure 3. Source: Coinbase Ex. 99.1 to Form 8-K, accession 0001679788-26-000121 [2]. Stablecoin revenue rounded as printed in the deck.
The objection
The stablecoin cushion is not growing fast. At $307 million it is below the $325 million of a year ago, and the company ties it partly to interest rates, which Coinbase does not set [2]. A bigger share of a smaller total is not the same as a new engine.
The tell
In Le Coin's view, the tell is the gap between net income and operating income. A $718.7 million profit built on a $715.0 million crypto markup can flip with prices; the $61.7 million from operations is the number to watch next quarter [2].
Stop
Flat revenue, slower trading, a quarter of sales from stablecoins, and a headline profit that mostly reflects the value of Coinbase's own crypto [2].
Sources
- Coinbase Global, Inc., Form 8-K, accession 0001679788-26-000121, filed Oct. 29, 2026, 4:09 p.m. ET, https://www.sec.gov/Archives/edgar/data/1679788/000167978826000121/0001679788-26-000121-index.htm ; accessed Oct. 29, 2026, 4:16 p.m. ET.
- Coinbase Global, Inc., Ex. 99.1 to Form 8-K (Q3'26 earnings presentation), https://www.sec.gov/Archives/edgar/data/1679788/000167978826000121/q326earningsdeck_vsec.htm ; total revenue $1,215.6M; transaction revenue $590M; S&S $570M; stablecoin revenue $307M (+5% Q/Q); gain on crypto assets held for investment $715.0M; operating income $61.7M; adjusted EBITDA $332.9M (non-GAAP); filed Oct. 29, 2026, 4:09 p.m. ET; accessed Oct. 29, 2026, 4:16 p.m. ET.
- Coinbase Global, Inc., Form 10-Q for the quarter ended Sept. 30, 2026, accession 0001679788-26-000122, accepted Oct. 29, 2026, 4:12 p.m. ET, https://www.sec.gov/Archives/edgar/data/1679788/000167978826000122/coin-20260930.htm ; cross-checks the Ex. 99.1 figures above; accessed Oct. 29, 2026, 5:04 p.m. ET.
Holding the Corner.
Not financial advice.