In brief – Coinbase posted $719 million in Q3 net income, or $2.51 per share, against an expected loss, though about $715 million came from gains on crypto it holds.
Adjusted net income was $78 million. – Revenue of $1.22 billion was in line with estimates and flat from the prior quarter, down 35% from a year earlier. – Prediction markets topped $200 million in annualized revenue, and subscription and services revenue reached nearly half of net revenue
Coinbase is back in the black, though much of that came from the crypto on its own balance sheet. The exchange reported third-quarter net income of $719 million, or $2.51 per diluted share, on Thursday, ending a two-quarter losing streak. Analysts had expected a loss of 15 cents per share, according to Zacks.
But about $715 million of the profit came from gains on crypto Coinbase holds as an investment. Excluding those and other investment gains, adjusted net income was $78 million. Total revenue came in at $1.22 billion, in line with expectations, flat from the second quarter and down 35% from a year earlier.