Coinbase Beats Earnings Forecast, Insiders to Sell $2B in Shares

Coinbase (COIN) posted $718.7 million in profit for Q3, despite analysts forecasting a loss. The quarterly report also disclosed plans by the chief executive, a co-founder and the company's president to offload up to 13.6 million shares within the coming 14 months.

The planned sales represent roughly 6% of Coinbase's 223.7 million Class A shares, valued at approximately $2.2 billion based on Thursday's closing price of $160.59. For holders of COIN, this means additional supply coming to market at a time when the main business is contracting.

Profit Derived from Crypto Holdings, Not Trading Activity

The quarterly report filed with the US Securities and Exchange Commission (SEC) showed revenue declining 35% to $1.22 billion. Transaction revenue slid 44% to $590 million, with consumer spot trading volume down 59%.

Operating income, reflecting profit from the exchange's core operations, stood at $61.7 million, a sharp drop from $480.5 million. Almost all net income originated from a $715 million gain on crypto that Coinbase holds as an investment — an unrealized gain that fluctuates with digital asset prices.

Wall Street analysts had forecast a loss of $0.15 per share, and BeInCrypto had noted the expected Coinbase shortfall days prior. The actual diluted earnings came in at $2.51 per share.

COINBASE $COIN Q3'26 EARNINGS HIGHLIGHTS

🔹 Revenue: $1.22B (Est. $1.23B) 🔴; -35% YoY
🔹 EPS: $2.51 (Est. -$0.06) 🟢
🔹 Transaction Rev: $590M (Est. $527M) 🟢; -44% YoY
🔹 S&S Revenue: $570M (Est. $561.5M) 🟢; -20% YoY
🔹 Adj. EBITDA: $332.9M (Est. $290.2M) 🟢; -58% YoY
🔹 Net… pic.twitter.com/2dVK8CAutc

— Wall St Engine (@wallstengine) October 29, 2026

The filing noted that fees from prediction markets — where users trade contracts based on event outcomes — helped offset some of the decline in spot trading.

According to CEO Brian Armstrong, that business is generating over $200 million in annualized revenue.

“We just released our Q3 earnings, and we set product records across the board despite the tough market. And I’m seeing signs that the market is turning,” he said.

Insider Share Sale Plans Double Last Year's Volume

On August 12, Armstrong put in place a plan to sell as many as 8.17 million shares from November 16 through October 2027. Co-founder Fred Ehrsam's plan allows for 3.87 million shares, while President Emilie Choi's covers 1.56 million shares over the same period.

These arrangements are Rule 10b5-1 trading plans, which executives set up when they are not in possession of material non-public information. Coinbase mandates that insiders trade exclusively through such plans, and each one only triggers sales above price levels that have not been disclosed.

The size is what has shifted. According to the Q3 2025 filing, Armstrong's plan from a year ago covered 3.75 million shares — less than half the current amount.

Coinbase retains $1.96 billion in share buyback authorization that could soak up some of the new supply.

COIN is currently trading 56% below its 52-week high of $361.40 and saw little change in after-hours trading.