Robinhood Q3 2026 Earnings: Revenue Rises 12% to $1.42 Billion as Crypto Revenue Plunges 55%, EPS Falls to $0.51

Robinhood Markets (NASDAQ: HOOD) reported third-quarter 2026 revenue of $1.42 billion, up 12% from a year earlier, even as earnings declined. Diluted earnings per share fell 16% year-over-year to $0.51, and net income dropped 14% to $476 million, according to Yahoo Finance. Options trading, equities activity and a surge in prediction-market contracts helped offset a sharp drop in cryptocurrency transaction revenue, which CNBC and Coindesk reported fell 55% from a year earlier.

Options and Prediction Markets Offset Crypto Slump

Cryptocurrency transaction revenue fell 55% year-over-year to $120 million, down from roughly $267 million a year earlier, according to CNBC and Coindesk. Coindesk reported that the figure nonetheless came in ahead of Wall Street analysts' expectations of $114.1 million, and that crypto accounted for just 8.4% of Robinhood's total quarterly revenue, down from roughly 21% a year earlier. Total crypto trading volume fell 38% to $50 billion, Coindesk reported, including $21 billion through the Robinhood app, down 48%, and $29 billion through crypto exchange Bitstamp, down 28%.

The weakness in spot crypto activity was offset by other parts of the business. Options trading revenue rose 31% to $399 million and equities trading revenue climbed 41% to $121 million, per figures reported by both CNBC and Yahoo Finance. Overall transaction-based revenue grew 19% year-over-year to $867 million, CNBC reported. Event contracts, Robinhood's prediction-markets business, generated $173 million in revenue; Yahoo Finance said that figure was up 11% from the prior quarter, while Coindesk characterized it as more than six times the year-earlier total. Customers traded a record 16.4 billion event contracts during the quarter, according to Yahoo Finance.

Chief Financial Officer Shiv Verma told CNBC that event contracts tied to crypto price movements performed well in the quarter, giving investors another way to express a view on crypto despite the slump in prices and spot trading. On the company's prior earnings call, Verma had noted crypto trading was running "a little slower than Q2 so far," though 247wallst.com reported that August crypto volume rebounded 61% to $17.5 billion, with late-September trading running 25% above the August average.

Net Interest Income Slips as Securities Lending Cools

Net interest revenue fell 9% to $415 million, which Yahoo Finance reported Robinhood attributed partly to lower securities lending activity. Verma told reporters on a call, as quoted by Yahoo Finance, that "right now, there was lower market volatility, and there was less IPOs, and so there were lower requests for demand" to borrow stocks. Despite the softer lending and interest figures, Verma characterized the core brokerage business as strong, saying "the core business is on fire," according to the same Yahoo Finance report.

Net deposits totaled $15.7 billion for the quarter, which CNBC said equates to a 17% annualized growth rate based on total platform assets at the end of the second quarter. Yahoo Finance noted that figure compares with $21.7 billion in net deposits the previous quarter.

Costs Climb Alongside Credit Card Expansion

Operating expenses rose 16% to $739 million, and provisions for credit losses nearly tripled to $71 million as Robinhood expanded its credit card business, Yahoo Finance reported. The company also recorded $67 million in unrealized investment losses, primarily tied to its venture fund. Excluding certain items, adjusted net income fell 3% to $550 million, according to the same report.

Stock Slides Despite Revenue Beat

Analysts had expected earnings of $0.57 per share and revenue of $1.43 billion, according to data compiled by Bloomberg and cited by Yahoo Finance. By that measure, Robinhood's $0.51 in EPS fell short by $0.06, a 10.5% miss based on our calculation using those two figures (0.51 minus 0.57, divided by 0.57). Coindesk separately reported that consensus forecasts had called for EPS of $0.55, putting the actual $0.51 figure about 7.3% below that estimate by the same type of calculation (0.51 minus 0.55, divided by 0.55). Revenue of $1.42 billion was roughly in line with the $1.42 billion expected by analysts surveyed by LSEG and cited by CNBC.

Shares fell 3% in after-hours trading following the release, as CNBC reported that total transaction revenue was still shy of Wall Street estimates tracked by StreetAccount. Yahoo Finance reported that the stock fell a further 3% in regular trading the next day. Recorded closing prices show HOOD shares at $101.93 on October 21, sliding to $94.56 by October 27, a decline of roughly 7.2% over that span based on our calculation using those two closing prices (94.56 minus 101.93, divided by 101.93); the earnings report was released after the close on October 27, so the after-hours and next-day declines described by CNBC and Yahoo Finance are not reflected in that pre-earnings price pattern.

Yahoo Finance reported that Robinhood's stock had slumped more than 15% since the start of 2026 through the day before earnings, putting it on pace for its worst annual performance since 2022. Ahead of the report, 247wallst.com noted the stock was trading around $98 premarket, down 4.1% on the day, and had lost 20.7% over the prior month amid a broader technology sell-off, with an average analyst price target of $135, roughly 38% above that premarket price. The same outlet observed that Robinhood shares have fallen on earnings day after each of the last four quarterly reports, even though three of those reports beat estimates.

Bottom Line

Robinhood's third quarter illustrates a business in transition: crypto, which Coindesk reported accounted for roughly 21% of revenue a year earlier, has shrunk to 8.4% of total sales, while options, equities and the fast-growing prediction-markets segment are carrying more of the load. Management framed the quarter as evidence of diversification working as intended, but the EPS miss against Bloomberg-compiled and Coindesk-cited consensus estimates, combined with the post-earnings share decline reported by CNBC and Yahoo Finance, suggests — as an interpretation of these reported figures — that investors remain focused on bottom-line pressure from rising costs, credit provisions and softer net interest income even as top-line growth continues.