Coinbase said its prediction markets business surpassed $200 million in annualized revenue during the third quarter of 2026. The figure represents an annualized revenue measure, rather than revenue earned during the three-month reporting period.
The company’s October 29 results showed daily prediction market traders increased by more than 60% quarter over quarter. Coinbase also reported 82% quarterly compound revenue growth for the product since its launch.
In its earnings presentation, management said more than 50% of contracts traded during the quarter concerned non-sports outcomes. CEO Brian Armstrong identified cryptocurrency contracts as a contributor to growth during slower periods in the sports calendar.
Coinbase also said it had received Commodity Futures Trading Commission approval to list its own prediction market contracts. Armstrong told investors that the change would improve the product’s economics.
Prediction markets contributed to growth beyond cryptocurrency trading
Coinbase reported total third-quarter revenue of $1.2 billion. Management said prediction markets and subscription and services growth helped offset softer cryptocurrency trading activity during the period. Predictions and derivatives together accounted for 25% of transaction revenue.
Net income was $719 million, while adjusted net income was $78 million. Adjusted EBITDA reached $333 million, increasing by 60% from the previous quarter.
“We delivered growth across key profitability measures in Q3, including our 15th consecutive quarter of positive Adjusted EBITDA,” said Chief Financial Officer Alesia Haas.
Subscription and services revenue represented 49% of net revenue. The earnings release also reported a 24% year-over-year increase in paid Coinbase One subscribers.
