Robinhood Posts Record $1.42B Revenue as Event Contracts Top Crypto, but EPS Falls 16% to $0.51
Robinhood's third-quarter revenue rose 12% to a record $1.42 billion on options, equities and prediction markets, while crypto revenue halved. Diluted EPS fell to $0.51 and the company trimmed the top of its 2026 cost outlook.
Robinhood Markets (HOOD) reported record third-quarter revenue of $1.42 billion on Tuesday, up 12% from a year ago, as options, equities and prediction-market trading offset a 55% drop in crypto revenue. Diluted earnings were $0.51 a share, down 16%, and adjusted earnings were $0.60, down 3%. The company trimmed the top end of its 2026 expense outlook by $25 million.
The quarter in numbers
| Metric | Q3 2026 | Q3 2025 | Change |
|---|---|---|---|
| Net revenues | $1,424M | $1,274M | +12% |
| Transaction-based revenues | $867M | $730M | +19% |
| Net interest revenues | $415M | $456M | -9% |
| Other revenues | $142M | $88M | +61% |
| Total operating expenses | $739M | $639M | +16% |
| Net income | $476M | $556M | -14% |
| Diluted EPS | $0.51 | $0.61 | -16% |
| Adjusted EPS | $0.60 | $0.62 | -3% |
| Adjusted EBITDA | $808M | $742M | +9% |
Net income included $67 million, or $0.07 a share, of unrealized losses, mainly from marking Robinhood Ventures Fund I to market. The provision for credit losses rose to $71 million from $26 million, and the tax provision nearly doubled to $149 million from $78 million. By our calculation, that lifted the effective tax rate to about 24% from about 12%, a major reason profit fell even though pre-tax income was down only 1%.
Where the revenue came from
| Transaction line | Q3 2026 | Change | Share of transaction revenue* |
|---|---|---|---|
| Options | $399M | +31% | 46% |
| Event contracts | $173M | More than 6x | 20% |
| Equities | $121M | +41% | 14% |
| Crypto | $120M | -55% | 14% |
*By our calculation. Prediction markets overtook crypto, with 16.4 billion event contracts traded, more than seven times last year. Options volume rose 48% to 905 million contracts, equity notional volume rose 53% to $992 billion, and crypto notional volume fell 38% to $50 billion. Other revenue growth came from Trump Account services and Gold subscriptions.
Customers and assets
| Metric | Q3 2026 | Change |
|---|---|---|
| Funded customers | 28.7M | +7% |
| Gold subscribers | 5.2M | +34% |
| Total platform assets | $396B | +19% |
| Net deposits | $15.7B | 17% annualized growth |
| Average revenue per user | $200 | +5% |
| Margin book | $22.1B | +59% |
The company said net deposits had already topped $13 billion in October, including $6 billion from the Dell family's contribution to Trump Accounts. Robinhood now counts 14 business lines at $100 million or more of annualized revenue, after its Rothera business passed that mark in its first full quarter.
Outlook and balance sheet
Robinhood lowered the top end of its 2026 adjusted operating expenses and stock-based compensation outlook by $25 million, citing efficiency gains, to a range of $2.675 billion to $2.75 billion. It did not provide a revenue forecast. Cash and equivalents were $5.8 billion, up from $4.3 billion a year earlier, long-term borrowings were $2.66 billion, and the company repurchased $25 million of stock in the quarter. CEO Vlad Tenev said the company's vision is to make everyone an owner.
The prediction-market question
Event contracts now generate about a fifth of transaction revenue, but the business is still being tested in courts and by states. Robinhood warns in its filings that legal changes could prevent it from offering them, which makes the line both the fastest grower and the biggest regulatory exposure.
Stock reaction
Robinhood shares traded around $94.61 in Tuesday's regular session, up about 1.9%, before the results were released after the close.
Sources: Robinhood Markets, third-quarter 2026 results (Oct. 27). This is informational, not a recommendation to buy or sell.
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