● Covered by 1 source · 1 reportLow impact1 negative
Robinhood shares fall 4% as crypto slump impacts Q3 earnings, offsetting new business growth
Key points
- Robinhood's Q3 net income was $468 million, down from $556 million year-over-year.
- Cryptocurrency revenue fell 55% to $120 million.
- Options revenue grew 31% to $399 million; event contracts revenue increased over 500%.
- Transaction-based revenue of $867 million missed Wall Street estimates.
Q3 Earnings Miss Expectations
Robinhood's shares declined 4% in after-hours trading following its third-quarter earnings report. The company reported net income of $468 million, or 51 cents per share, which is a decrease from $556 million, or 61 cents per share, in the same period last year. This performance was below analyst expectations of 56 cents per share.
Revenue Breakdown and Crypto Impact
Total revenue increased 12% year-over-year to $1.42 billion, meeting analyst estimates. However, transaction-based revenue, which reached $867 million, fell short of the $879 million estimated by StreetAccount. A significant factor in this shortfall was a 55% decrease in cryptocurrency revenue, which dropped to $120 million.
Growth in Other Business Segments
Despite the crypto downturn, Robinhood saw substantial growth in other areas. Options revenue increased 31% to $399 million, and equities revenue rose 41% to $121 million. Event contracts revenue experienced a more than 500% increase, contributing to the 19% overall growth in transaction-based revenue compared to the previous year.
Diversification Efforts and Future Outlook
Robinhood is actively diversifying its offerings beyond traditional stock and crypto trading, investing in wealth management and subscriptions. CFO Shiv Verma noted that event contracts on crypto movements performed well, providing an alternative for investors to engage with crypto despite price slumps. The company recorded net deposits of $15.7 billion for the quarter, reflecting a 17% annualized growth rate based on total platform assets at the end of Q2 2026.
✨ This summary was generated by AI from the outlets' reporting listed below. It is not independently verified and may contain errors — check the original sources. How BrevFeed works →
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Reporting from
Robinhood's shares dropped 4% after its third-quarter earnings showed net income fell to $468 million, or 51 cents per share, from $556 million a year ago. A 55% decline in cryptocurrency revenue offset growth in options trading and event contracts, raising concerns about the company's reliance on volatile market activity.