Robinhood Posts Record $1.42B Q3 Revenue but GAAP Profit Misses as Crypto Revenue Falls 55%

HOOD reported record third-quarter net revenue of $1.42 billion, up 12% from a year earlier, but GAAP diluted EPS of $0.51 fell short of the $0.55 LSEG consensus. Adjusted EPS was $0.60, which excludes about $67 million of unrealized losses, mostly on Robinhood Ventures Fund I. That difference is why some outlets reported an earnings beat and others a miss. Revenue came in slightly below the $1.43 billion consensus Investing.com used.

The revenue mix shifted sharply. Crypto revenue fell 55% from a year earlier to $120 million, down from $268 million, although it rose about 20% from roughly $100 million in the second quarter. Event contracts, Robinhood's prediction-markets business, brought in $173 million, more than six times a year earlier and again more than crypto. Options revenue rose 31% to $399 million and equities rose 41% to $121 million, while net interest revenue fell 9% to $415 million. Funded customers reached 28.7 million, Gold subscribers 5.2 million and platform assets $396 billion.

Shares fell about 7% after hours from a $94.56 close and were down about 8% premarket Wednesday, before the decline narrowed to around 3% to 4% by mid-morning. On the call, management said fourth-quarter-to-date trading volumes in equities, options and crypto were running about 5% below the third quarter, while event-contract volume was up about 10%. Robinhood also trimmed the top end of its 2026 outlook for adjusted operating expenses plus stock compensation by $25 million, to a range of $2.675 billion to $2.75 billion.

Analysts largely held their ground. Mizuho reiterated its Outperform rating and $130 target and called the pullback a buying opportunity, a week after The Block reported a $140 Mizuho target. Truist, Needham, KeyBanc, BTIG and Rosenblatt all reiterated positive ratings on Oct. 28, according to SentiSense analyst data. What to watch: whether prediction-market growth can offset a softer fourth quarter for trading, and any regulatory challenge to event contracts.