Coinbase Global has said for years that it is seeking to become less dependent on crypto trading for profits. The company's third-quarter earnings report will give investors a chance to see whether that ambition is anywhere close to being realized.
Analysts expect the crypto firm to report a loss of 23 cents per share and $1.21 billion in revenue for the period when it reports after the close on Thursday, according to FactSet. That compares to a $1.50 per-share profit and revenue of $1.87 billion in the third quarter of 2025.
A number of factors have weighed on Coinbase and other digital assets firms. Chief among them has been a relatively flat crypto market that's still well off last year's high. Bitcoin on Wednesday traded at about $80,400, down from more than $122,000 last October.
Analysts expect Coinbase to report trading volume of $137 billion in the third quarter, less than half of what it had in the same period last year.
Coinbase shares in the past 12 months have fallen 54% to around $162 as of Wednesday's close.
Coinbase executives in the past several quarters have highlighted the company's progress in lessening its dependency on trading revenue. Analysts expect the company to have made nearly half of its revenue in the third quarter from its subscription and services business, which includes profits from the USDC stablecoin, which Coinbase helped launch. The company now also makes money from traditional stock and fund trading, prediction markets, and so-called "agentic" wallets that allow artificial-intelligence agents to trade and make payments.
In addition to the weak trading environment, some analysts have also said they expect Coinbase's fees to come under pressure as traditional Wall Street firms make their own forays into crypto.
The third quarter also saw Coinbase experience a significant regulatory setback. The firm was one of the biggest boosters of the Clarity Act, a bill that would have taken most crypto trading out of the purview of securities regulators. The bill failed to advance in the Senate in September.
For now, Coinbase and other crypto firms can rely on friendly regulators in President Donald Trump's administration to keep a hands-off attitude to most crypto activities. But they will likely come under increased scrutiny in January if Democrats manage to win control of the House or Senate in the U.S. midterm elections next week.
Comments