Coinbase Posts $719 Million Q3 Profit on Crypto Gains

Coinbase reported third-quarter net income of $719 million, or $2.51 per diluted share, according to Decrypt. Analysts had expected a loss of 15 cents per share, Decrypt said, citing Zacks. The result ended a two-quarter losing streak that followed a $394 million loss in the first quarter, the outlet reported.

About $715 million of the profit came from gains on crypto holdings, leaving adjusted net income at $78 million once those gains are stripped out, per Decrypt's account of the earnings report. Total revenue was $1.22 billion, flat from the prior quarter but down 35% from a year earlier. Transaction revenue slipped 1% to $590 million, still topping the roughly $527 million analysts had forecast.

Decrypt reported that Coinbase's prediction markets unit crossed $200 million in annualized revenue, with daily traders up more than 60% from the previous quarter and revenue compounding 82% each quarter since launch. The company also lowered its adjusted expense guidance for the year by a further $100 million at the midpoint, narrowing the range to between $4.15 billion and $4.3 billion, the outlet said. Adjusted EBITDA climbed 60% from the prior quarter to $333 million.

As of October 25, transaction revenue for the current quarter stood near $165 million, Decrypt reported. Coinbase shares closed at $160.59 on Thursday, down 1.1%, ahead of the earnings release, and remain more than 55% below their yearly peak of $361.40, according to the outlet. The Defiant also covered the transaction revenue beat.