Coinbase’s $719M profit lands as insiders line up a $2.2B COIN exit 🪙

Coinbase reported third-quarter net income of $719 million, or $2.51 per diluted share, as CEO Brian Armstrong, co-founder Fred Ehrsam and President Emilie Choi filed plans to sell up to 13.6 million COIN shares worth roughly $2.2 billion. The plans cover about 6% of Coinbase’s 223.7 million Class A shares and are scheduled to run through 2027.

The $719 million result ended two consecutive losing quarters. Revenue fell 35% year over year to $1.22 billion, while transaction revenue declined 44% to $590 million as consumer spot trading volume dropped 59%. Operating income fell to $61.7 million from $480.5 million, but a $715 million gain on crypto Coinbase holds as an investment helped adjusted net income reach $78 million. Analysts had expected a loss of $0.15 per share. Subscription and services revenue rose 3% to $570 million, and adjusted EBITDA increased 60% from the prior quarter to $333 million.

Prediction markets partly offset weakness in spot trading, exceeding $200 million in annualized revenue. Daily traders increased more than 60% from the prior quarter, and revenue has compounded 82% per quarter since launch. “We just released our Q3 earnings, and we set product records across the board despite the tough market. And I’m seeing signs that the market is turning,” Armstrong said. CFO Alesia Haas said, “Prediction markets are adding another revenue stream and are less correlated to crypto volatility.” Average USDC held in Coinbase products reached a record $22 billion, while paid Coinbase One subscribers rose 24% from a year earlier.

Armstrong’s Rule 10b5-1 plan, adopted on August 12, covers up to 8.17 million shares and allows sales from November 16, 2026, through October 22, 2027, subject to predetermined price thresholds. Ehrsam adopted a plan on September 4 covering 3.87 million shares from December 7, 2026, through June 7, 2027, while Choi’s plan covers 1.56 million shares from January 04, 2027, through December 31, 2027. Coinbase requires insiders to trade only under Rule 10b5-1 plans, and the company retained $1.96 billion in share-buyback authorization.

Coinbase added 643 BTC in Q3, bringing its holdings to 17,954 BTC worth approximately $1.5 billion. The exchange also cut its 2026 adjusted expense guidance by another $100 million at the midpoint, to between $4.15 billion and $4.3 billion. Through Oct. 25, fourth-quarter transaction revenue totaled about $165 million. COIN closed at $160.59, down 1.1%, and was little changed in after-hours trading; the stock remained more than 55% below its 52-week high of $361.40. William Blair said, “We think investors should stay involved with Coinbase,” while maintaining its “outperform” rating.