Robinhood's Prediction Markets Revenue Jumps Sixfold To $173 Million, But Per-Share Profit Falls 16%
Third-quarter revenue hit a record $1.42 billion, while crypto revenue fell 55% and operating costs rose 16%.
Robinhood Markets, the app-based brokerage, posted record third-quarter revenue of $1.42 billion, up 12% from a year earlier, but diluted earnings per share fell 16% to $0.51. Event-contract and options trading surged while crypto slumped and expenses grew faster than sales, the company said Tuesday.
Prediction markets up, crypto down
Transaction-based revenue rose 19% to $867 million. Event contracts, the prediction-market bets, brought in $173 million, up more than sixfold, while options revenue rose 31% to $399 million and equities revenue rose 41% to $121 million.
Crypto went the other way: revenue fell 55% to $120 million. Net interest revenue slipped 9% to $415 million on lower securities lending and short-term rates, and other revenue rose 61% to $142 million, helped by Trump Account service revenue and Robinhood Gold subscriptions.
Robinhood Gold subscribers reached a record 5.2 million, up 34% from a year earlier.
Costs outrun sales
Net income fell 14% to $476 million. It included $67 million of unrealized losses, or $0.07 a share, mainly from marking down Robinhood Ventures Fund I.
Total operating expenses rose 16% to $739 million, driven by higher credit-loss provisions as the credit card loan book grows, Trump Accounts and Rothera costs, and marketing. Provisions for credit losses were $71 million, against $26 million a year earlier.
Robinhood also introduced adjusted earnings measures this quarter. Adjusted EPS fell 3% to $0.60, and adjusted net income fell 3% to $550 million.
It lowered the top of its 2026 adjusted operating expense and stock-compensation outlook by $25 million, to a range of $2.675 billion to $2.75 billion, citing efficiency gains.
Deposits and the Dell contribution
Net deposits were $15.7 billion in the quarter, and total platform assets rose 19% to $396 billion. Funded customers rose 7% to 28.7 million.
CFO Shiv Verma said October net deposits had already topped $13 billion, including $6 billion from the Dell family's contribution to Trump Accounts. He said the company is entering the fourth quarter with "strong momentum."
Robinhood bought back $25 million of stock in the quarter, and cash totaled $5.8 billion. Management will discuss results on a video call at 5 p.m. ET Tuesday.
Rothera, Robinhood's prediction-market venture, passed $100 million in annualized revenue in its first full quarter, with over 6.4 billion contracts traded since launch.
Sources
- 8-K Filing — Robinhood Markets, Inc. (HOOD) — SEC EDGAR
- Exhibit q32026robinhoodexhibit991.htm — Robinhood Markets, Inc. 8-K exhibit — SEC EDGAR
- Robinhood Reports Third Quarter 2026 Results — globenewswire.com
