Coinbase Posts $719 Million Profit as Q3 Revenue Falls 35%

Coinbase posted $719 million in net income for the third quarter, returning to profit after three straight quarterly losses even as revenue fell 35% year over year.

Revenue totaled $1.22 billion, and net income was up 66% from a year earlier. Unrealized cryptocurrency gains accounted for much of the reported profit, while adjusted net income was $78 million.

Subscription and services generated 49% of net revenue, and prediction markets exceeded $200 million in annualized revenue. Daily traders in prediction markets increased more than 60% from the previous quarter.

Coinbase's share of crypto trading volume rose to 10.7%, its fourth consecutive quarterly increase. Assets on the platform represented 12.5% of total cryptocurrency market capitalization.

Coinbase reported earnings per share of $2.51 and adjusted EBITDA of $333 million, up 60% from the prior quarter. Adjusted EBITDA remained positive for a 15th consecutive quarter. Average USD Coin (USDC) holdings reached a record $22 billion, up 49% year over year and equal to about 30% of average USDC market capitalization.