Robinhood reported record third-quarter net revenue of $1.424 billion as net income fell 14% year over year, with weaker crypto trading offset by growth in options and event contracts.
Robinhood's amended earnings release put net income at $476 million for the three months ended Sept. 30, 2026. Diluted earnings per share came to 51 cents, down 16% from a year earlier. The result was below the 55-cent analyst estimate based on LSEG figures reported by Reuters.
Revenue increased 12% from the same quarter a year earlier. Transaction-based revenue rose 19% to $867 million, with options revenue up 31% to $399 million and event-contract revenue at $173 million, more than six times its year-earlier amount. Equities revenue advanced 41% to $121 million.
Cryptocurrency transaction-based revenue fell 55% to $120 million. Across Robinhood and Bitstamp, crypto notional trading volume declined 38% year over year to $50 billion. Robinhood app volume was $21 billion, down 48%, while Bitstamp volume reached $29 billion, down 28%. EconoTimes previously covered the crypto revenue decline alongside Wells Fargo's revised price target.
Operating expenses grew 16% to $739 million. Robinhood attributed the cost increase to credit-loss provisions, investment in Trump Accounts and Rothera, plus marketing and growth initiatives. Net income included $67 million in unrealized losses, primarily related to the mark-to-market valuation of Robinhood Ventures Fund I.
Net deposits totaled $15.7 billion, and platform assets reached $396 billion, up 19% year over year. Robinhood attributed asset growth mainly to deposits and higher equity valuations, partly offset by lower cryptocurrency valuations.
Bill Birmingham, research head at REX Financial, told Reuters, “Prediction markets are becoming a second outlet for the same core active traders.” Robinhood Chief Financial Officer Shiv Verma told Reuters prediction markets were “almost a $500-million-a-year business already.” Verma told Reuters that Robinhood’s prediction markets began around the 2024 election and were under two years old by the earnings call.
