AI Image
Coinbase shares slide 11% despite earnings beat as Binance hack weighs on crypto stocks
Proactive financial news • • business
Key Points:
- Coinbase shares dropped 11.1% after reporting Q3 revenue of $1.22 billion, slightly below expectations, despite beating profit estimates with earnings per share of $2.51 and net income of $718.7 million.
- Transaction revenue fell 44% year-over-year to $590 million, though it surpassed forecasts, while subscription and services revenue declined 20% to $570 million but remained above estimates.
- Adjusted EBITDA declined 58% to $332.9 million but beat projections, with trading volume reaching $1.21 trillion and assets on the platform at $377 billion, exceeding analyst estimates.
- Coinbase lowered its full-year 2026 adjusted expense guidance and forecasted Q4 subscription revenue between $550 million and $630 million, amid industry-wide pressure following a Binance security breach.
- CEO Brian Armstrong emphasized industry collaboration to protect customers, while the company highlighted strong growth in prediction markets and recorded a $715 million net gain on crypto assets held for investment.
