Robinhood earnings: crypto revenue plunges 55% as options trading booms
Robinhood earnings for the third quarter highlighted a 55% plunge in crypto transaction revenue to $120 million. Booming activity in options and prediction markets lifted net revenue 12% to $1.424 billion.
⚡ Key numbers:
- $120 million in crypto transaction revenue, down 55% year-over-year
- $1.424 billion in total Q3 net revenues, up 12%
- $173 million from event contracts, surging over fivefold
- $468 million in net income versus $556 million a year ago
Crypto volumes contract across platforms
The brokerage's latest quarterly numbers illustrated a steep retreat by retail traders from digital assets. Crypto transactions brought in $120 million during the three-month period, down from $267 million reported in the prior-year stretch. While the tally beat analyst projections of $114.1 million compiled by CoinDesk, digital assets accounted for only 8.4% of total firm revenues compared to 21% last year.
Total crypto trading volume dropped 38% to $50 billion across all company services. The retail app experienced a 48% decline to $21 billion, while Bitstamp processed $29 billion, down 28%. Meanwhile, the newly launched Robinhood Chain logged more than $80 billion in decentralized exchange volume, contributing over $50 million in mainnet network fees.
Options and prediction markets drive revenue expansion
The weakness in token trading was countered by rapid expansion across derivatives and equity services. Options trading generated $399 million in revenue, advancing 31% year-over-year, while equity transactions gained 41% to $121 million. Event contracts in prediction markets experienced explosive adoption, generating $173 million compared to negligible contributions a year earlier.
According to CNBC, aggregate transaction-based revenue rose 19% to $867 million, falling just short of the $879 million consensus tracked by StreetAccount. Brokerage assets continued to expand as clients added $15.7 billion in net deposits during the quarter, bringing twelve-month inflows to $71 billion amid an environment where stocks face high-stakes test as earnings collide with rising borrowing costs.
Pre-market drop as earnings miss bottom-line expectations
Despite overall top-line gains, Robinhood shares slipped approximately 8% in pre-market dealings on Wednesday. Net profit retreated to $468 million, representing 51 cents per share, down from $556 million (61 cents per share) twelve months earlier. Investors focused heavily on the modest transaction revenue miss and the structural retreat in high-margin crypto turnover.
Robinhood's Chief Financial Officer noted via MarketWatch that broader volatility did not deter retail investors from buying chip stocks on market pullbacks. Even so, the brokerage must navigate shifting customer preferences as retail engagement rotates from speculative digital tokens into macro event contracts.
What to watch next
- Retail volume sustainability across prediction markets following election cycles
- Organic growth trajectory of Robinhood Chain fee generation
- Stabilization of crypto trading activity on Bitstamp and the core mobile platform
Frequently asked questions
What were the key figures in the latest Robinhood earnings report?
Robinhood reported total Q3 revenue of $1.424 billion, up 12% year-over-year. Net income decreased to $468 million, or 51 cents per share, compared to $556 million a year earlier.
Why did Robinhood crypto revenues drop so sharply?
Crypto transaction revenue fell 55% to $120 million due to a 38% decrease in overall trading volumes, with mobile app crypto activity falling 48% to $21 billion.
What offset the decline in crypto trading?
Strong momentum in options trading, which grew 31% to $399 million, and event contracts in prediction markets, which generated $173 million, cushioned the crypto slump.
Sources: MarketWatch, CoinDesk, CNBC.
Disclaimer: This article is for information purposes only and does not constitute investment advice. Data as of Oct 28, 2026, 12:55 may vary by source. Trading leveraged CFDs carries a high risk of losing money.
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