Coinbase’s $1.22 billion quarter shows growing role for stablecoins and prediction markets

Coinbase held third-quarter revenue close to the preceding quarter despite weaker cryptocurrency trading activity, as stablecoins and prediction markets contributed more to its business. Total revenue reached $1.216 billion for the three months ended September 30, although it was 35% below the same period in 2025.

The results, released on October 29, highlight two different forces at work: efforts to diversify day-to-day revenue, and the large effect cryptocurrency valuations can have on reported earnings. Net income reached $718.7 million, with management identifying unrealized gains on investment holdings as the main driver.

A broader revenue mix

Transaction revenue totaled $590.2 million, while subscription and services revenue reached $570.2 million. The latter represented 49% of net revenue, a measure that excludes corporate interest and other income included in total revenue.

Stablecoins were an important part of that mix. Coinbase said stablecoin revenue grew 5% from the previous quarter to roughly $307 million, supported by record average USDC balances in its products and higher interest rates. Those figures show how the economics of a crypto platform can depend on customer balances and reserve-related income as well as trading fees.

Prediction markets also became more material. Management said the business had passed $200 million in annualized revenue. That figure expresses a revenue pace; it is not $200 million earned during the third quarter. Together, prediction markets and derivatives accounted for about a quarter of transaction revenue, according to the company.

Profit needs a closer reading

The increase in net income should be considered alongside operating performance. Coinbase reported adjusted EBITDA of $332.9 million, up 60% from the previous quarter but down 58% year over year. Adjusted EBITDA is a company-defined measure outside standard US accounting rules.

Unrealized gains can lift earnings without the company selling the underlying assets. They can also reverse if market prices fall. The difference between valuation effects and recurring revenue is therefore important when assessing the quarter’s durability.

At September 30, Coinbase held $8.6 billion in cash and cash equivalents. It also reported roughly $2 billion of remaining share-repurchase authorization. That authorization gives the company capacity to buy shares; it does not establish a timetable or guarantee purchases.

The fourth-quarter test

Coinbase is trying to reduce its dependence on the swings in spot trading by developing several revenue streams. The latest results show progress in its product mix, alongside continued exposure to crypto-market conditions and interest rates.