Robinhood Crypto Revenue Dives 55% as Prediction Markets Expand

Robinhood Crypto Revenue Falls 55% as Prediction Markets Support Growth

Robinhood Markets reported a sharp drop in crypto transaction revenue in its third-quarter 2026 results, highlighting how the retail brokerage’s revenue mix is shifting as customer activity changes.

Crypto revenue fell 55% year over year to $120 million in the quarter, Robinhood said in results released after the market close on Oct. 27, 2026. The company also posted earnings per share of $0.51, below analysts’ expectations of $0.56.

Despite the crypto decline, Robinhood’s overall business grew. Total net revenue was about $1.42 billion, up 12% from the same period a year earlier, according to the company’s release.

Robinhood attributed the crypto weakness less to an exodus of customers and more to market conditions. The company said retail investors are trading less in crypto, but noted that much of the year-over-year decline reflects lower coin prices and reduced revenue tied to the stablecoin mix.

At the same time, Robinhood said customers have continued depositing funds and reallocating toward other products, including options and event contracts. That dynamic suggests activity is shifting within the platform rather than leaving it entirely.

The third quarter marked the second consecutive quarter of year-over-year declines in crypto revenue, following an earlier period in which crypto revenue was down 38%.

Meanwhile, Robinhood’s prediction markets business has been expanding quickly. In a separate quarterly update referenced in the same set of materials, the company said prediction market volume climbed to 13.6 billion event contracts in one quarter, up 55% from 8.8 billion in the prior quarter. Robinhood cited the World Cup as one driver of that jump.

The company has also been building infrastructure around event contracts. Robinhood said Rothera—its designated contract market joint venture with Susquehanna International Group—handled 2.1 billion contracts in its first month and generated $17 million in prediction market revenue. CFO Shiv Verma said Robinhood has been narrowing spreads on less popular bets and routing more volume through Rothera to reduce costs.

Robinhood’s event contracts are still largely sourced through partners. Kalshi remains the primary provider of event contracts offered through Robinhood, with ForecastEx playing a smaller role.

The broader takeaway from the quarter was a clearer contrast between two segments that have defined Robinhood’s recent evolution: crypto, which helped drive earlier growth, and prediction markets, which have become a growing contributor as crypto trading revenue has weakened.