Coinbase Reports 66 Percent Profit Growth in Third Quarter

Cryptocurrency exchange Coinbase Global reported a 66 percent increase in adjusted net income for the third quarter of 2026, reaching $719 million as a recovery in digital asset prices boosted the value of its investment portfolio. The San Francisco-based company disclosed the results on October 29, 2026, alongside revenue that fell short of Wall Street expectations.

According to Coinbase, adjusted net income rose from $433 million in the same quarter a year earlier. The company also reported earnings of $2.51 per share, although the comparison with analysts' estimates was not immediately clear.

Revenue totaled $1.20 billion, below the $1.233 billion forecast by analysts surveyed by LSEG. The revenue shortfall contrasted with the substantial improvement in profitability during the quarter.

Coinbase's investment portfolio benefited from rising cryptocurrency valuations. According to the company's financial results, changes in the market value of its digital asset holdings contributed significantly to net income, even though portfolio composition may remain relatively stable.

Bitcoin, commonly used as a benchmark for the broader cryptocurrency market, gained 39 percent during the three-month period ending September 30. The cryptocurrency was recently trading at approximately $80,809.

Coinbase also continued expanding its business beyond traditional cryptocurrency trading during the third quarter. Its initiatives included artificial intelligence integrations, tokenized real-world assets and prediction markets.

In July, Max Branzburg, Coinbase's vice president of product, told CNBC that the company planned to introduce an "everything exchange" featuring tokenized stocks and other real-world assets, derivatives trading, prediction markets and early-stage token sales.

The company subsequently introduced Coinbase for Agents in early October. The product supports users who want to employ artificial intelligence agents, including ChatGPT and Muse, to manage portfolios, research financial assets and conduct trades.

Coinbase also broadened its prediction market services by making additional event contracts available to users. The expansion coincided with increased trading activity and revenue from the business.

According to Coinbase's reported figures, prediction markets generated revenue at an annualized rate exceeding $200 million during the third quarter. The number of traders using these markets also increased 60 percent compared with the second quarter.