Coinbase had a mixed third quarter. Revenue came in at $1.20 billion, below the $1.233 billion analysts expected, according to company filings. Subscription and services revenue did better, reaching $570 million. The company is still heavily tied to trading activity, but its recurring income is growing.
Monthly Transacting Users fell to 7.4 million, down from 9.3 million a year earlier. During its earnings call, Coinbase blamed overall market conditions. Its share of crypto trading volume did rise to 10.7%, the fourth straight quarter of gains, which suggests it is winning business even as the broader market quiets.
Adjusted EBITDA was $332.9 million, extending a run of 15 straight profitable quarters on that measure. The prediction markets business passed $200 million in annualized revenue, and Coinbase One hit a record number of subscribers.
Coinbase CEO preps share sales
Separately, filings reported on October 30 show CEO Brian Armstrong has set up a plan to sell up to 8.17 million Class A shares. He adopted the plan in August under SEC Rule 10b5-1, which lets executives schedule sales ahead of time. Sales could run from November 16 through October 2027, subject to stock price conditions. Co-founder Fred Ehrsam and President Emilie Choi have similar plans, bringing the total to about 13.6 million shares.
This is not new territory for Armstrong. In the past, VanEck analyst Matthew Sigel tracked about $545.7 million in sales over nine months, starting in April 2025. Armstrong has said these sales are part of his risk management, not a signal about the company.
Coinbase stock slumps nearly 15%
Coinbase shares (COIN) fell about 15% today, but not necessarily due to this earnings report.
Binance disclosed a security breach on October 29 that it estimates at $6.3 billion, making it the largest crypto theft on record. Around $3 billion in assets has been frozen so far, with industry partners assisting in the freezes.
The hackers are allegedly linked to North Korea, though Binance has not attributed the attack to any group. The exchange says it has found no evidence of a leaked wallet private key.
Binance says it has $6.34 billion in reserves available to cover losses. Deposits were unaffected, and the company expects to resume withdrawals within 48 hours. Figures remain preliminary, and estimates vary slightly across outlets.
The market reacted quickly. Bitcoin fell roughly 4.5% to below $77,000. Shares of Strategy (MSTR) fell nearly 10% on the day. Strive (ASST) shares fell over 12% at times. Coinbase’s stock is down over 55% on the year.