Shares of Coinbase Global Inc (NASDAQ:COIN) fell 11.1% after the cryptocurrency exchange reported third-quarter results that narrowly missed revenue expectations, despite earnings beating estimates, due to a security breach leading to increased pressure on crypto-related stocks.
Revenue for the three months ended September 30 fell 35% year-on-year to $1.22 billion, just below the $1.23 billion expected by analysts.
Earnings per share came in at $2.51, compared to the consensus forecast for a loss of $0.06, while net income came in at $718.7 million.
Trading revenue fell 44% from a year earlier to $590 million, although it beat expectations of $527 million. Subscription and services revenue fell 20% to $570 million, ahead of the estimate of $561.5 million.
Adjusted EBITDA fell 58% year-over-year to $332.9 million, but also beat forecasts of $290.2 million.
reported trading volume of $1.21 trillion during the quarter, with assets on its platform reaching $377 billion, above the consensus estimate of $318 billion. Its share of the crypto market stood at 10.7%.
The company also reported average USDC holdings of $22 billion, while stablecoin revenues came in at $307 million, below the forecasted $314 million.
Coinbase lowered its full-year 2026 adjusted spending forecast to between $4.15 billion and $4.30 billion, down from its previous range of $4.25 billion to $4.60 billion.
For the fourth quarter, it expects subscription and services revenue of between $550 million and $630 million and adjusted expenses of between $1.01 billion and $1.16 billion. Transaction expenses are expected to represent an average percentage of 15% of net revenue.
The findings came as the crypto industry faced new security concerns following a hack affecting Binance.
Coinbase CEO Brian Armstrong said the company was working to protect customers, including blocking transfers to compromised wallets and offering support to Binance.
“Times like this call for the industry to work together,” Armstrong said, adding that sharing information and protecting customers should be prioritized, no matter what platform they use.
Beyond its core exchange business, Coinbase highlighted the growth of prediction markets, which it said surpassed $200 million in annualized revenue, with quarterly compound growth of 82%.
The company also recorded a net gain of $715 million on crypto assets held for investment during the quarter.
Coinbase repurchased 10.2 million Class A shares during the period and had $2 billion remaining under its share repurchase authorization.
The weakness extended to crypto-related stocks, Circle Internet Group (NYSE) down 8%, Robinhood Markets (NASDAQ) down 7.9%, and Strategy (NASDAQ) down 9%.
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