Coinbase Beats Q3 Transaction Revenue Estimates as Crypto Gains Lift Profit

What happened

Prediction markets topped $200 million in annualized revenue, and subscription and services revenue reached nearly half of net revenue. Average USDC (Circle’s dollar-pegged token) in Coinbase products hit a record $22 billion; adjusted net income was $77.7 million, versus $719 million reported. Coinbase is a cryptocurrency exchange and Bitcoin company based in San Francisco.

Coinbase reported third-quarter net income of $719 million, driven largely by gains on its crypto holdings, as revenue held flat at $1.22 billion. Decrypt News Business Coinbase Swings to $719 Million Q3 Profit on Crypto Gains Coinbase reported third-quarter net income of $719 million, driven largely by gains on its crypto holdings, as revenue held flat at $1.22 billion.

In brief Coinbase posted $719 million in Q3 net income, or $2.51 per share, against an expected loss, though about $715 million came from gains on crypto it holds. Revenue of $1.22 billion was in line with estimates and flat from the prior quarter, down 35% from a year earlier.

Coinbase is back in the black, though much of that came from the crypto on its own balance sheet. The exchange reported third-quarter net income of $719 million, or $2.51 per diluted share, on Thursday, ending a two-quarter losing streak.

Analysts had expected a loss of 15 cents per share, according to Zacks . But about $715 million of the profit came from gains on crypto Coinbase holds as an investment.

Excluding those and other investment gains, adjusted net income was $78 million. Transaction revenue slipped 1% to $590 million but beat the roughly $527 million analysts expected, as crypto volatility sank to multiyear lows and trading volume across the market fell.