Total revenue of $1,215.6 million beat the $1,212.3 million estimate, and diluted EPS of $2.51 beat the estimate of a $0.23 loss per share. Total revenue compares with $1,868.7 million a year earlier, and the EPS beat rests on a $715.0 million gain on crypto assets held for investment.
Guidance: full-year 2026 technology and development, general and administrative, and sales and marketing expenses, excluding amortization of intangible assets, are expected to be slightly lower than in 2025; no revenue outlook is given.
Adjusted EBITDA of $333 million rose 60% quarter over quarter, the 15th consecutive positive quarter, following the May 2026 restructuring that cut approximately 700 employees.
Diversification held a floor under revenue: subscription and services revenue was 49% of net revenue versus 41% a year earlier, stablecoin revenue fell only 5% to $306.9 million on record average USDC held of $22 billion, and prediction markets passed $200 million of annualized revenue.
The one thing that matters: Underneath a $719 million net income headline, the core business shrank hard: transaction revenue fell 44% on a 59% drop in consumer spot volume, and adjusted net income was only $78 million. The story now rests on stablecoins, derivatives and prediction markets offsetting retail trading, and this quarter they only partly did.
Key metrics
Metric
Reported
Prior year
Change
Net income
$ 719 million
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—
Adjusted net income
$ 78 million
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—
Adjusted EBITDA
$ 333 million
—
up 60 % quarter over quarter
Coinbase Crypto Trading Volume Market Share
10.7 %
—
fourth consecutive quarter of market share gains
Prediction markets annualized revenue
surpassed $ 200 million
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82 % quarterly compound growth since launch
Subscription and services revenue share of total net revenue
49 %
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Guidance changes
Item
New guidance
Prior guidance
FY2026 aggregate technology and development, general and administrative, and sales and marketing expenses, excluding amortization of intangible assets
slightly lower than for the year ended December 31, 2025
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Quality of earnings
GAAP earnings are a crypto mark, not operations. Net income of $718.7 million includes a $715.0 million gain on crypto assets held for investment; adjusted net income was $77.7 million, and operating income was $61.7 million against $480.5 million a year earlier.
The tax line flatters further. The effective tax rate was 12.8% against the 21.0% statutory rate, helped by a valuation allowance release and a one-time favorable adjustment from closing the 2020 and 2021 federal tax audit.
Small credits help the operating line. Restructuring was a $4.6 million credit from reversed accruals, and other operating items were $18.7 million of income against $61.3 million of expense a year earlier.
Gotchas & watch items
Retail engagement is sliding: Monthly Transacting Users fell to 7.4 million from 9.3 million, and consumer transaction revenue dropped 47% to $450.1 million.
The 49% services share overstates diversification: subscription and services revenue itself fell 20% to $570.2 million, with blockchain rewards down 54% to $85.7 million; the share rose because transaction revenue fell faster.
Concentration is rising: one counterparty accounted for 27% of total revenue, up from 19% a year earlier.
Stablecoin economics are sturdier than the rate backdrop suggests: higher USDC balances added $84.6 million against $52.8 million lost to lower rates, and interest and finance fee income rose 6% to $68.6 million.