Robinhood posts record revenue, but crypto slump weighs on profit

Q3 revenue rose 12% to $1.42 billion as options and event-contract trading surged; cryptocurrency revenue fell 55%, and GAAP diluted EPS missed analyst expectations.

Record sales, lower reported profit

Robinhood Markets reported third-quarter net revenue of $1.42 billion, a record and 12% above the same quarter a year earlier. But profit declined: net income fell 14% to $476 million, and diluted earnings per share under U.S. generally accepted accounting principles (GAAP) dropped 16% to 51 cents. The results, for the quarter ended Sept. 30, were released after the market close on Tuesday, Oct. 27.^[1][3]

Reuters said the 51-cent profit per share was below the 55-cent analyst estimate it cited from LSEG. That comparison refers to the reported GAAP figure. Robinhood also introduced adjusted net income and adjusted EPS as new non-GAAP measures this quarter: adjusted EPS was 60 cents, down 3% year over year. The company says these measures exclude certain items, including unrealized and realized investment gains or losses. They are not interchangeable with the 51-cent GAAP result, and their introduction makes comparisons with prior quarters less direct.^[1][2]

Trading growth offset a sharp crypto decline

Transaction-based revenue rose 19% to $867 million, supported by options revenue of $399 million, up 31%, and event-contract revenue of $173 million, more than six times the year-earlier level. Equities revenue increased 41% to $121 million. Cryptocurrency revenue moved the other way, falling 55% to $120 million; Robinhood’s crypto notional trading volume dropped 38% to $50 billion. Net interest revenue also declined 9% to $415 million, which the company attributed mainly to lower securities-lending activity and short-term rates.^[1][2]

The customer and asset measures were stronger: funded customers rose 7% to 28.7 million, platform assets increased 19% to $396 billion, and Gold subscribers climbed 34% to 5.2 million. The company said $67 million in unrealized losses, primarily tied to the mark-to-market value of Robinhood Ventures Fund I, reduced net income by about 7 cents per diluted share. These figures show growth in activity and assets alongside weaker crypto-related revenue and lower GAAP profit.^[1]

Expense outlook and stock reaction

Robinhood lowered the upper end of its 2026 outlook for adjusted operating expenses and share-based compensation by $25 million, to a range of $2.675 billion to $2.75 billion. The company said the change reflects efficiency gains. This is a non-GAAP expense measure, and Robinhood cautioned that the outlook excludes items such as credit-loss provisions and significant regulatory expenses; it is not a forecast for total GAAP operating expenses.^[1]

Reuters reported that HOOD shares fell 4.2% in after-hours trading following the release. That is an initial, off-session market move, not the next regular-session close. Reuters attributed investor focus to the profit miss, softer crypto activity and higher expenses; the price move itself does not establish how the stock will trade afterward. The company’s filed earnings materials and Reuters report together show why the headline is mixed: record revenue and strong non-crypto trading growth, but lower GAAP earnings and a pronounced crypto slowdown.^[2]

Robinhood posts record revenue, but crypto slump weighs on profit

Record sales, lower reported profit

Trading growth offset a sharp crypto decline

Expense outlook and stock reaction

Sources