Robinhood Revenue Hits $1.42 Billion as Event Contracts Surge to $173 Million
Key Facts
Robinhood reported on October 27 results for the third quarter ended September 30, 2026, posting record net revenue of $1.42 billion, up 12% year over year. Transaction-based revenue climbed 19% to $867 million, with event contracts among the fastest-growing sources of income. Revenue from the business reached $173 million, surpassing cryptocurrency revenue of $120 million. But revenue growth did not translate into higher earnings: net income and diluted earnings per share fell from the same period a year earlier. Shares declined in after-hours trading after the results were released.
A breakdown of transaction-based revenue showed growth extending beyond event contracts. Options revenue was $399 million, up 31% year over year, while equities revenue reached $121 million, up 41%. Event-contract revenue increased more than sixfold year over year, according to the company’s results. Trading volume in the contracts rose more than sevenfold to a record 16.4 billion. Robinhood said the increase reflected higher trading activity, particularly in sports-related contracts, compared with the third quarter of 2025, when the product was still in its early stages.
Meanwhile, cryptocurrency revenue fell 55% year over year to $120 million, as nominal trading volume declined 38% to $50 billion. The contrast between that contraction and growth in event contracts points to a shift in the revenue mix during the quarter, without indicating that the company announced a strategic move away from cryptocurrency. The Block reported that event-contract revenue rose 11% from the previous quarter, as well as more than sixfold year over year. It added that $28 million of the business’s revenue came from Rothera, the exchange jointly operated with Susquehanna. Event-contract revenue therefore exceeded cryptocurrency revenue for the quarter, while cryptocurrency remained an important source of income despite its annual decline.
Net income was $476 million, down 14% from the third quarter of 2025, and diluted earnings per share fell 16% to $0.51. The company said net income included unrealized losses of $67 million, equivalent to $0.07 in diluted earnings per share, primarily related to the mark-to-market valuation of Robinhood Ventures Fund I. Operating expenses rose 16% to $739 million, a gain the company attributed mainly to higher credit-loss provisions. Net interest revenue fell 9% to $415 million, driven by lower securities-lending activity and short-term interest rates. The company said it does not provide a forecast for total operating expenses for 2026.
On activity and balance-sheet metrics, net deposits totaled $15.7 billion during the quarter, bringing the total to $71 billion over the past twelve months. Total assets on the platform rose 19% year over year to $396 billion. Robinhood attributed asset growth mainly to continued net deposits and higher equity valuations, partly offset by lower cryptocurrency valuations. These figures offer a parallel picture to the revenue results: customer flows and platform assets continued to rise, while revenue sources and earnings diverged. Growth in options, equities and event contracts came alongside declines in cryptocurrency income and net interest revenue.
For comparison with the previous quarter, the company reported record net revenue of $1.31 billion in the second quarter of 2026, up 32% year over year, and event-contract revenue of $156 million, an increase of more than tenfold. In the third quarter, revenue set another record, but annual growth slowed to 12%, while event-contract revenue rose to $173 million. Investing.com reported adjusted earnings per share of $0.60, down 3% year over year but above analysts’ estimate of $0.55. Revenue, by contrast, came in at $1.42 billion, below the analyst consensus of $1.43 billion. Robinhood shares fell 5.5% in after-hours trading to $89.22, according to The Block.
Looking ahead to the next quarter, Chief Financial Officer Shiv Verma said October started with strong momentum, and net deposits since the start of the month had exceeded $13 billion as of the announcement date. That included $6 billion contributed by the Dell family to Trump Accounts, according to the company. The figures follow net deposits of $15.7 billion in the third quarter, while total deposits over the past twelve months reached $71 billion. Robinhood did not provide a forecast for total operating expenses for 2026. October’s figures put deposits at the forefront of the company’s reported indicators for the next period, alongside third-quarter results and a mixed revenue composition.