Coinbase Global (NASDAQ:COIN) reported third-quarter financial results Thursday after market close.
Here are the highlights.
Coinbase Q3 Financials
Coinbase reported third-quarter revenue of $1.216 billion, down 35% year-over-year. The revenue total missed a Street consensus estimate of $1.230 billion, according to data from Benzinga Pro.
Transaction revenue was $590 million for the quarter, down 44% year-over-year and down 1% from the second quarter.
Subscription & Services revenue was $570 million, down 20% year-over-year and up 3% from the second quarter.
The company reported crypto trading volume market share of 10.7%, marking a fourth consecutive quarter of market share gains.
Assets on the platform stood at 12.5% of the total crypto market capitalization.
Adjusted EBITDA was positive for a 15th consecutive quarter.
The company highlighted its prediction markets business as one of its fastest-growing segments in company history. Prediction markets passed $200 million in annualized revenue. The company said the segment has seen 82% compounded quarterly growth since launching. Daily prediction market traders were up 60% quarter-over-quarter.
"Prediction markets have been one of the fastest-growing products in Coinbase history, growing even through slower sports months driven by crypto contracts where we have a strong right to win," Coinbase CEO Brian Armstrong said.
Paid Coinbase One subscribers were up 24% year-over-year, reaching a new all-time high in the quarter.
The company reported adjusted earnings of 27 cents per share, beating a Street consensus estimate of a loss of 6 cents per share.
What's Next for Coinbase
The company said transaction revenue is $165 million quarter to date for the fourth quarter through Oct. 25.
Coinbase is guiding for Subscription and Services revenue to be in a range of $550 million to $630 million for the fourth quarter.
The company also lowered and narrowed its full-year 2026 adjusted expense guidance to a range of $4.15 billion to $4.30 billion, down from $4.20 billion to $4.45 billion.
"Prediction markets are adding another revenue stream and are less correlated to crypto volatility," Coinbase Chief Financial Officer Alesia Haas said. "These businesses make Coinbase more diversified and resilient across market cycles."
Coinbase Stock Price Action
Coinbase stock is up 1.2% to $162.62 in after-hours trading Thursday versus a 52-week trading range of $139.11 to $361.40.