Robinhood Markets reported record third-quarter revenue on October 27, 2026, but its shares fell 7% after earnings missed Wall Street's bottom-line expectations and cryptocurrency trading revenue dropped sharply. Total net revenue reached $1.424 billion, up 12% from $1.274 billion a year earlier and 9% from the previous quarter. Net income declined 14% year over year to $476 million, while diluted earnings per share fell 16% to $0.51, below the $0.55 consensus estimate.
Cryptocurrency transaction revenue plunged 55% year over year to $120 million, although it improved 20% from about $100 million in the second quarter. Robinhood Chain contributed $26 million during its first full quarter on mainnet; excluding that, crypto trading revenue was roughly $94 million, down 6% sequentially. Total crypto notional trading volume fell 38% year over year to about $50 billion, with app-based trading down 48% to $21 billion and Bitstamp volume down 28% to $29 billion.
Prediction markets emerged as the biggest growth story. Robinhood generated $173 million from event contracts in Q3, more than six times the prior-year figure and up 11% from $156 million in Q2. Event contract trading volume grew more than sevenfold to a record 16.4 billion contracts, overtaking crypto as a transaction revenue source. The company also said its Rothera prediction-market business exceeded $100 million in annualized revenue in its first full quarter.
Options trading remained the largest transaction-based category at $399 million, up 31% year over year, while equities revenue rose 41% to $121 million. Total transaction-based revenue increased 19% to $867 million. Net interest income fell 9% to $415 million, and operating expenses rose 16% to $739 million. Robinhood ended September with $396 billion in total platform assets, $15.7 billion in quarterly net deposits, 30.4 million investment accounts, and 5.2 million Gold subscribers. The company narrowed its full-year adjusted expense outlook to $2.675 billion–$2.75 billion.
Investors are now weighing whether prediction-market growth can keep offsetting crypto revenue volatility as regulatory scrutiny over event contracts continues.
