Coinbase Misses Revenue Target as Users Decline and CEO Plans Share Sales
Coinbase Misses Revenue Target as Users Decline
Coinbase reported third-quarter revenue of $1.20 billion, below the $1.233 billion that analysts expected, according to company filings. Monthly transacting users fell to 7.4 million, down from 9.3 million a year earlier. The company blamed overall market conditions for the decline.
Recurring income is growing. Subscription and services revenue reached $570 million, and adjusted EBITDA was $332.9 million, marking 15 straight profitable quarters on that measure. The company’s share of crypto trading volume rose to 10.7%, the fourth straight quarter of gains.
Key Figures From the Quarter
- Revenue: $1.20 billion versus $1.233 billion expected
- Subscription and services revenue: $570 million
- Monthly transacting users: 7.4 million, down from 9.3 million
- Adjusted EBITDA: $332.9 million
- Crypto trading volume share: 10.7%
- Bitcoin bought for balance sheet: 643 Bitcoin worth $1.5 billion
CEO and Executives File Plans to Sell Shares
Coinbase CEO Brian Armstrong has set up a plan to sell up to 8.17 million Class A shares. He adopted the plan in August under SEC Rule 10b5-1, which lets executives schedule sales ahead of time. Sales could run from November 16, 2026 through October 2027, subject to stock price conditions.
Co-founder Fred Ehrsam and President Emilie Choi have similar plans, bringing the total to about 13.6 million shares. Armstrong has said past sales are part of his risk management, not a signal about the company.
Binance Reports $6.3 Billion Security Breach
Binance disclosed a security breach on October 29 that it estimates at $6.3 billion, calling it the largest crypto theft on record. Binance is a crypto exchange where people buy and sell digital assets. Around $3 billion in assets has been frozen so far, with industry partners helping.
Hackers are allegedly linked to North Korea, though Binance has not attributed the attack to any group. The exchange says it has found no evidence of a leaked wallet private key. Binance said it has $6.34 billion in reserves available to cover losses. Deposits were unaffected, and the company expects to resume withdrawals within 48 hours.
Confirmed Facts
- Coinbase revenue was $1.20 billion in the third quarter, below the $1.233 billion analysts expected.
- Monthly transacting users fell to 7.4 million from 9.3 million a year earlier.
- Armstrong filed a plan to sell up to 8.17 million shares; Ehrsam and Choi have similar plans totaling about 13.6 million shares.
- Binance reported a $6.3 billion security breach on October 29.
Unanswered Questions
It is unclear how much of Coinbase’s roughly 15% share price drop is tied to the earnings report versus the Binance breach. The source says the decline was not necessarily due to earnings. Binance breach figures remain preliminary, and estimates vary across outlets.
Why This Matters for Crypto Markets
Coinbase remains heavily tied to trading activity, so fewer users can pressure revenue even as recurring income grows. Executive share sales can add pressure to the stock. The Binance breach contributed to broader market losses, with Bitcoin falling roughly 4.5% to below $77,000 and Coinbase shares down over 55% for the year.
What Comes Next
Armstrong’s share sales could begin on November 16, 2026, subject to stock price conditions. Binance expects to resume withdrawals within 48 hours of its October 29 disclosure.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.