Coinbase Net Income Jumps 66% as Prediction Markets Top $200M Annualized

Coinbase posted $718.7 million in net income for the three months ended Sept. 30, up 66% from a year earlier, even as total revenue fell 35% to $1.216 billion.

The results included $715 million in gains on crypto assets held for investment, primarily from fair-value changes in Bitcoin (BTC) and Ether (ETH). Adjusted net income, a non-GAAP measure, was $78 million. Those figures give context to the reported profit: investment gains were a separate item, while adjusted net income was substantially lower.

Coinbase’s prediction markets exceeded $200 million in annualized revenue. The figure is a run rate based on quarterly net revenue for the latest qualifying quarter; it does not represent revenue booked by the product during Q3.

Subscription and services revenue totaled $570.2 million, equal to 49% of net revenue, while transaction revenue was $590.2 million. Coinbase CEO Brian Armstrong described prediction markets as one of the company’s fastest-growing products, pointing to growth through slower sports months and demand for crypto contracts.