Robinhood's third-quarter profit fell as cryptocurrency revenue dropped 55%, even as event contracts and options trading pushed transaction revenue higher. Shares slipped 4% in after-hours trading.
Robinhood shares fell 4% in after-hours trading after the brokerage reported third-quarter results that missed on profit despite growth in options trading and prediction markets. A slump in crypto revenue offset gains elsewhere in the business.
Profit misses while revenue meets estimates
Robinhood earned 51 cents per share against the 56 cents analysts expected, based on an LSEG survey. Net income fell to $468 million from $556 million a year ago.
Revenue matched the $1.42 billion estimate, a 12% increase from $1.27 billion in the same quarter last year. Transaction-based revenue of $867 million, however, came in below the $879 million StreetAccount estimate.
Event contracts and options offset the crypto drop
Transaction-based revenue grew 19% year over year, driven primarily by a more than 500% increase in event contracts revenue. Options revenue rose 31% to $399 million, and equities revenue climbed 41% to $121 million.
Cryptocurrency revenue fell 55% to $120 million. Chief Financial Officer Shiv Verma told CNBC that event contracts on crypto movements did well, giving investors another way to express a view despite the slump in prices and spot trading.
Retail traders bought the dip in chip stocks
Verma also told MarketWatch that traders on the platform bought the dip in semiconductor stocks during the third quarter, even as concerns about artificial-intelligence spending upended the sector.
Net deposits on the platform totaled $15.7 billion for the quarter. Over the past year, they reached $71 billion, or 21% growth compared with total platform assets at the end of Q3 2025.
Sources: CNBC, MarketWatch (snippet-based)
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