Robinhood posts record Q3 revenue of $1.42 billion as prediction-market revenue grows over sixfold, offsetting a 55% drop in crypto revenue. | Credit: CCN.com
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Key Takeaways
Robinhood’s Q3 revenue rose 12% to a record $1.424 billion.
Prediction-market revenue grew more than sixfold to $173 million, overtaking crypto.
Crypto revenue dropped 55% to $120 million as trading volume fell 38%.
Robinhood reported record third-quarter revenue of $1.424 billion as surging prediction-market activity and stronger stock and options trading offset a sharp decline in cryptocurrency revenue.
The results showed revenue rising 12% year-over-year and 9% from the previous quarter.
Event-contract revenue grew more than sixfold, while crypto revenue dropped 55%, highlighting a significant shift in the platform’s trading mix.
Growing subscriptions and Trump Account service revenue provided additional support, although record sales did not translate into higher net profit.
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Robinhood generated $173 million from event contracts during the quarter, exceeding its $120 million in cryptocurrency revenue by $53 million.
Customers traded a record 16.4 billion event contracts, more than seven times the year-earlier total. Revenue grew more than sixfold, a separate measure that reflects how trading activity translated into sales.
The expansion helped transaction-based revenue climb 19% to $867 million. Options remained the largest disclosed component, generating $399 million, up 31%, while equities revenue increased 41% to $121 million.
Robinhood Markets has just released financial results for the third quarter of 2026. pic.twitter.com/lygt15zlrh
Trading volumes reinforced the contrast. Equity notional volume rose 53% to a record $992 billion, and customers traded 905 million options contracts, up 48%.
Meanwhile, crypto notional volume fell 38% to $50 billion. Robinhood App volume declined 48% to $21 billion, while Bitstamp volume dropped 28% to $29 billion.
Crypto revenue therefore contracted faster than trading volume. The headline figures alone do not establish how much pricing, customer activity or trading mix contributed to that gap.
The results nevertheless show Robinhood sustaining growth despite weaker cryptocurrency trading.
Net income declined 14% year-over-year to $476 million, while diluted earnings per share fell 16% to $0.51. The company recorded $67 million in unrealized losses, primarily associated with marking its Robinhood Ventures Fund I investment to market.
Adjusted net income fell 3% to $550 million, and adjusted EPS declined 3% to $0.60. Robinhood introduced those adjusted measures this quarter to show profitability before certain non-operating items.
Analyst comparisons varied by provider. Benzinga cited revenue expectations of $1.422 billion, implying a narrow beat, while Investing.com reported a $1.43 billion consensus, implying a slight miss.
Costs also increased. Total operating expenses rose 16% to $739 million as Robinhood expanded its credit card business and invested in Trump Accounts, Rothera, and marketing.
Net interest revenue added another headwind, falling 9% to $415 million due to lower securities lending activity and short-term interest rates.
Deposits and Subscriptions Support Fourth-Quarter Momentum
Customer growth offered a stronger signal heading into the final quarter.
Robinhood ended September with 28.7 million funded customers, up 1.9 million from a year earlier. Platform assets increased 19% to $396 billion, while quarterly net deposits reached $15.7 billion, rounded to $16 billion in its headline results.
Gold subscriptions climbed 34% to a record 5.2 million. Other revenue rose 61% to $142 million, primarily reflecting Trump Account services and higher Gold subscription revenue.
That contribution represents a substantial portion of October inflows, making the deposit mix relevant when assessing momentum.
Robinhood also lowered the upper end of its forecast for annual adjusted operating expenses and share-based compensation by $25 million, to $2.75 billion.
The next test is whether expanding product and customer assets can sustain growth while crypto trading remains weak and operating costs continue to rise.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Giuseppe Ciccomascolo began his career as an investigative journalist in Italy, where he contributed to both local and national newspapers, focusing on various financial sectors.
Upon relocating to London, he worked as an analyst for Fitch's CapitalStructure and later as a Senior Reporter for Alliance News. In 2017, Giuseppe transitioned to covering cryptocurrency-related news, producing documentaries and articles on Bitcoin and other emerging digital currencies. He also played a pivotal role in establishing the academy for a cryptocurrency exchange website. Crypto remained his primary area of interest throughout his tenure as a writer for ThirdFloor.
