Robinhood misses Q3 earnings, reports $1.42B revenue, $0.51 EPS despite crypto rise

Event contracts revenue reached $173 million, an increase from $156 million recorded in the second quarter. Concurrently, crypto revenue climbed to $120 million from $100 million in the prior quarter, though this figure represented a 55% decrease compared to the previous year.

The trading platform, utilized by over 28 million individuals for stock and crypto purchases, also noted that customers traded a record 16.4 billion contracts during the quarter.

Net income for the period was $476 million, marking a 14% decline from $556 million a year earlier and a 17% drop from $573 million in the second quarter.

Adjusted earnings per share, which excludes specific items, amounted to $0.60, reflecting a 3% decrease year-over-year.

Robinhood adjusted its 2026 cost guidance, narrowing the range for adjusted operating expenses and stock-based pay to between $2.675 billion and $2.75 billion.

The company's Robinhood Chain, a layer-2 network on Ethereum, generated about $3.13 million in fees over 30 days by the end of August.

The institution also announced a partnership with Ripple, which will introduce RLUSD, a stablecoin, to Robinhood Chain and Bitstamp, with an in-app rollout scheduled for later this year.

These reported figures illustrate how shifts in customer activity, such as increased trading or adoption of new products, directly manifest within the firm's financial metrics.

The growth in prediction market activity, alongside the revenue generated by the crypto segment, highlights evolving engagement patterns among the platform's user base.

Why it matters

The mixed results show varying performance across Robinhood's product lines, with prediction markets growing while overall crypto revenue declined significantly. These earnings reports are key indicators of how retail investors are engaging with new financial products offered by major platforms.