Coinbase said third-quarter net income was $718.7 million

Coinbase Global reported third-quarter net income of $718.7 million, or $2.51 a diluted share, for the three months ended Sept. 30. The quarterly report, signed Oct. 29, lists net income of $718,697 thousand and basic earnings of $2.72 a share. A year earlier the same quarter showed net income of $432,552 thousand, or $1.50 a diluted share. Operating income was $61,669 thousand, against $480,532 thousand. The gap between a higher net profit and a much smaller operating profit is explained in the same statement: gains on crypto assets held for investment were $715,022 thousand. Those figures are the company’s.

Total revenue was $1,215,582 thousand, against $1,868,693 thousand. Net revenue was $1,160,462 thousand. In the discussion of results, Coinbase says net revenue was $1.2 billion, including transaction revenue of $590.2 million and subscription and services revenue of $570.2 million. A year earlier those lines were about $1.0 billion and $716.6 million inside net revenue of $1.8 billion. The transaction-revenue table lists $590,224 thousand, down 44% from $1,046,260 thousand. Total operating expenses were $1,153,913 thousand, against $1,388,161 thousand. Reuters described the expense change as about 17%, to $1.15 billion. For the nine months ended Sept. 30, the filing shows a net loss of $34,888 thousand. Reuters said the quarter’s profit followed three consecutive quarterly losses. That streak is Reuters’ description. The nine-month loss is the filing’s.

Coinbase said the drop in consumer transaction revenue reflected a 59% decrease in consumer crypto spot trading volume for the quarter, partly offset by the launch of prediction-markets trading and by growth in derivatives volume. It said institutional transaction revenue changed mainly because institutional spot volume fell 53%. Reuters said prediction-markets revenue exceeded $200 million, and quoted chief financial officer Alesia Haas as saying prediction markets and derivatives together were about 25% of transaction revenue, while subscription and services were about 49% of net revenue. She told Reuters the company was seeing the benefit of efforts to diversify revenue. That $200 million figure and those shares are Reuters’ account of what the company said. Adjusted EBITDA of $332.9 million for the quarter, which the filing pairs with the nine-month figure of $843.9 million, is Coinbase’s non-GAAP measure.

The filing says 84% of total revenue in the quarter was generated in the United States, and that no other country accounted for more than 10%. Reuters said the shares were down 3.3% in trading after the bell. That move is a market result Reuters reported. It is not a view on whether the shares should be owned.