Coinbase (COIN) Q3 2026 Financial Report Coinbase's Q3 financial report appears to show substantial profits, with net income reaching $719 million. However, $715 million of this came from gains on crypto assets held for investment purposes. In other words, Coinbase's most profitable activity in Q3 wasn't trading, but investments. After adjusting for crypto assets and other investment gains and losses, as well as related tax effects, Coinbase's net income was $77.7 million, a decrease of 82% year-over-year. Total revenue for the quarter was $1.216 billion, a 35% year-over-year decrease, with trading revenue declining by 44% to $590 million. This is also reflected in trading volume. Coinbase's Q3 crypto spot trading volume was $134.5 billion, more than half of the $294.3 billion in the same period last year. Although the company disclosed that its crypto trading volume market share increased from 5.6% in the same period last year to 10.7%, this increase in market share failed to translate into year-over-year growth in trading revenue amidst overall declining market activity. However, Coinbase's revenue streams have indeed diversified. Subscription and service revenue reached $570 million in Q3, accounting for 49% of net revenue, while stablecoin revenue was $307 million, a 5% increase quarter-over-quarter. The average USDC balance across Coinbase products also increased from $20 billion in the previous quarter to $22 billion. However, while USDC balances increased, the overall average market capitalization of USDC decreased from $77 billion in the previous quarter to $73 billion. Additionally, Coinbase's prediction market revenue has reached an annualized level of over $200 million. Daily trading users increased by over 60% quarter-over-quarter, and the growth in prediction markets also led to increased transaction fees. Regarding derivatives, Coinbase's notional trading volume in crypto derivatives in Q3 was $963 billion, an increase of approximately 14% year-over-year, but a decrease of approximately 6% quarter-over-quarter. The integration of Coinbase International with Deribit was completed in October, and short-term trading volumes may fluctuate due to user adaptation. As of the end of September, Coinbase disclosed $8.604 billion in cash and cash equivalents, down from $11.285 billion at the end of last year. This included approximately $2.415 billion in payment-type stablecoins. Long-term debt was approximately $5.948 billion, and short-term borrowings were approximately $749 million. The company stated that it still has approximately $2 billion in repurchase authorization, but has not yet disclosed when it will initiate the repurchase. Overall, the financial report shows that Coinbase's market share is indeed growing, but the downturn in the cryptocurrency market has led to a decline in trading, and revenue and operating profit are still declining. While USDC and prediction markets can bring additional revenue, they are not enough to offset the decline in trading business. A @Gate, trading more markets