Robinhood’s Q3 Outlook Dims as Crypto Revenue Surges, Bets Rise

Robinhood Misses Q3 Earnings as Crypto Revenue Falls and Prediction Market Bets Grow

Robinhood reported third-quarter 2026 results that showed continued growth in its core trading business and prediction markets, but weaker cryptocurrency activity weighed on the overall picture.

For the quarter ended Sept. 30, Robinhood posted total net revenue of $1.42 billion, up 12% from $1.27 billion a year earlier. The result came in slightly below Wall Street’s expectation of about $1.43 billion. Earnings per share were $0.51, missing analysts’ $0.55 estimate and down from $0.61 in the prior-year period.

The company’s revenue mix continued to shift away from crypto. Cryptocurrency trading revenue fell 55% year over year to roughly $120 million, shrinking to 8.4% of total revenue versus about 21% a year earlier. By comparison, crypto represented 37% of transaction-based revenue in Q3 2025 but about 14% in Q3 2026, based on calculations from the company’s quarterly releases.

Meanwhile, growth in equities, options, and event contracts helped offset the crypto decline. Transaction-based revenues rose 19% to $867 million, supported by record equity and options volumes. Net interest revenues fell 9% to $415 million, while other revenues increased 61% to $142 million.

Robinhood also reported continued momentum in its event contracts business—yes-or-no contracts tied to outcomes such as sports, elections, or economic releases. Event contracts generated $173 million, up from $156 million in the second quarter, when they surpassed crypto revenue for the first time. Customers traded a record 16.4 billion event contracts, more than seven times the level a year earlier.

Operating metrics pointed to broader engagement on the platform:

• Funded customers rose 7% to 28.7 million.
• Gold subscribers reached a record 5.2 million.
• Total platform assets increased 19% to $396 billion.
• Net deposits totaled $15.7 billion for the quarter, and $71 billion over the past year.
• Average revenue per user (ARPU) rose 5% to $200.

The results highlight a broader shift in Robinhood’s business as crypto-related activity plays a smaller role in revenue generation, while options, equities, and event contracts become increasingly important. Investors focused on the overall miss versus expectations, even as the company pointed to strong customer growth and rising engagement across several product lines.