Coinbase Q3 Revenue Misses Estimates, Users Drop; Armstrong Readies Share Sale

Coinbase delivered a mixed performance in Q3. The company reported revenue of $1.20 billion, falling short of the $1.233 billion projected by analysts, based on its filings. Subscription and services revenue performed more strongly, hitting $570 million. Although still closely linked to trading, the company’s recurring revenue stream is expanding.

The number of monthly transacting users dropped to 7.4 million, compared with 9.3 million in the same period last year. On its earnings call, the exchange attributed the decline to broader market conditions. Its slice of crypto trading volume increased to 10.7%, marking the fourth consecutive quarter of growth, indicating it is gaining ground even as the overall market slows.

Adjusted EBITDA came in at $332.9 million, continuing a streak of 15 consecutive profitable quarters by that metric. The prediction markets unit surpassed $200 million in annualized revenue, and Coinbase One achieved its highest subscriber count ever.

JUST IN: Coinbase disclosed buying 643 Bitcoin worth $1.5 billion for its balance sheet in Q3 pic.twitter.com/5BYdrwLCJN

— Bitcoin Magazine (@BitcoinMagazine) October 30, 2026

Coinbase CEO Armstrong Plans Share Sales

In a separate filing on October 30, Chief Executive Brian Armstrong disclosed a plan to sell as many as 8.17 million Class A shares. He adopted the arrangement in August under SEC Rule 10b5-1, allowing executives to pre-schedule trades. Share sales could take place from November 16 until October 2027, depending on stock price conditions. Co-founder Fred Ehrsam and President Emilie Choi also set up similar plans, bringing the combined total to around 13.6 million shares.

Armstrong has been here before. Analyst Matthew Sigel of VanEck previously tracked approximately $545.7 million in sales over a nine-month period beginning in April 2025. The CEO has described the sales as part of his personal risk management, not a reflection on the company’s prospects.

Coinbase Shares Decline Nearly 15%

On the day, Coinbase stock (COIN) dropped roughly 15%, though the decline was not necessarily tied to the earnings release.

On October 29, Binance revealed a security breach it estimates at $6.3 billion, the largest crypto theft ever. So far, approximately $3 billion in assets have been frozen, with assistance from industry partners.

The attackers are reportedly connected to North Korea, but Binance has not assigned blame to any specific group. The exchange states it has uncovered no proof of a leaked wallet private key.

According to Binance, it holds $6.34 billion in reserves to cover losses. Customer deposits were not impacted, and the exchange anticipates resuming withdrawals within 48 hours. The figures are still preliminary and vary modestly across reports.

Financial markets responded swiftly. Bitcoin declined by about 4.5% to under $77,000. Strategy (MSTR) dropped almost 10% during the day. Strive (ASST) fell more than 12% at certain points. For the year, Coinbase stock has lost more than 55% of its value.