Subscription and services revenue fell less steeply than transaction revenue at Coinbase in the third quarter, making up 49% of net revenue as both major income streams declined year over year.
Coinbase's quarterly filing reported $1.160 billion in net revenue for the three months ended Sept. 30. Transaction revenue totaled $590.2 million, while subscription and services revenue brought in $570.2 million.
Transaction revenue fell 44% from a year earlier, compared with a 20% decline in subscription and services revenue. Coinbase reported net income of $718.7 million and Adjusted EBITDA of $332.9 million.
The filing also reported $715.0 million in net gains on crypto assets held for investment. The filing said changes in those gains were primarily due to fair-value remeasurement. Adjusted EBITDA rose 60% from the second quarter but was about 58% below the year-earlier quarter.
Coinbase's Q3 release put total revenue at about $1.2 billion, roughly flat from the second quarter. It also reported that the company's share of crypto-market trading rose to 10.7% for a fourth consecutive quarterly increase, while overall crypto trading volume fell 10%.
Coinbase said its prediction-market product topped $200 million in annualized revenue during Q3. Daily prediction-market trader numbers grew more than 60% from Q2, and non-sports events made up most contracts, Coinbase said. Chief Financial Officer Alesia Haas said prediction markets could diversify Coinbase's business because their performance is less tied to crypto-market swings.
Separately, Coinbase CEO Brian Armstrong said the CFTC had approved the company to list its own prediction-market contracts. Coinbase said its diversified product portfolio is intended to support durable, long-term revenue growth and resilience across market cycles.
