Robinhood Third Quarter: Record Revenue, Crypto Slide
Robinhood Q3 results show record $1.424 billion revenue while net income and EPS slipped as crypto revenue fell, shifting near-term flows and positioning.
KEY TAKEAWAYS
- Record revenue of $1.4 billion while net income fell 14% to $476 million.
- Transaction-based revenue rose 19% to $867 million led by options and equities.
- Cryptocurrency revenue plunged 55% to $120 million, pressuring profitability despite higher volumes.
HIGH POTENTIAL TRADES SENT DIRECTLY TO YOUR INBOX
Add your email to receive our free daily newsletter. No spam, unsubscribe anytime.
Robinhood Markets Inc. reported record revenue of $1.424 billion for the quarter ended Sept. 30, 2026, in its Q3 results released Oct. 27, 2026. Net income and diluted earnings per share declined as weaker cryptocurrency trading offset gains in options, equities, and other transaction activity.
Quarterly Results and Profit
Robinhood’s net income fell 14% year over year to $476 million, while diluted earnings per share dropped 16% to $0.51. On an adjusted basis, net income was $550 million and adjusted EPS was $0.60, each down 3% year over year. Adjusted EBITDA, a non-GAAP measure of earnings before interest, taxes, depreciation, and amortization, rose 9% to $808 million.
Total operating expenses increased 16% to $739 million, driven mainly by credit-loss provisions tied to growth in the credit-card loan book, expenses related to Trump Accounts and Rothera, and marketing and growth investments. Net interest revenue declined 9% to $415 million. Net income included $67 million in unrealized losses, or about $0.07 per diluted share, primarily from mark-to-market adjustments on Robinhood Ventures Fund I.
Trading Mix and Customer Trends
Transaction-based revenue rose 19% to $867 million, led by a 31% increase in options revenue to $399 million and a 41% gain in equities revenue to $121 million. Cryptocurrency revenue fell 55% to $120 million. Event-contract revenue surged more than 500% year over year, reaching $173 million on trading volume of 16.4 billion contracts.
Equity notional volume increased 53% to $992 billion, and options contracts traded rose 48% to 905 million. Crypto notional volume declined 38% to $50 billion, split between $21 billion on the Robinhood app and $29 billion on Bitstamp.
Net deposits totaled approximately $15.7 billion to $16 billion for the quarter. Funded customers reached 28.7 million, up 1.9 million year over year. Robinhood Gold subscribers hit a record 5.2 million, and total platform assets rose 19% year over year to $396 billion.
Retirement assets under custody increased 51% to $36.6 billion, while the margin book grew 59% to $22.1 billion. Cash and deposits rose 43% to $20.4 billion, though cash sweep balances declined 9% to $32.3 billion.
The results reveal a divergence between strong top-line growth driven by trading volumes, event contracts, and deposits, and pressure on profitability from the crypto revenue decline and higher operating costs.
