Robinhood’s third-quarter revenue rose to $1.424 billion, but fell slightly below the roughly $1.43 billion analysts had expected, sending its shares down about 7% in after-hours trading. The brokerage’s weaker cryptocurrency revenue was largely offset by a surge in event contracts, a business that generated $173 million during the quarter and grew into one of Robinhood’s largest trading-revenue contributors.
Net income reached $476 million, down 14% from a year earlier, while GAAP earnings per share fell 16% to $0.51. Results included a $67 million unrealized loss, primarily linked to valuation changes in Robinhood Ventures Fund I, which reduced reported earnings per share by about $0.07.
Robinhood also introduced a non-GAAP adjusted EPS measure of $0.60, down 3% year over year but up 20% from $0.50 in the second quarter. Removing the venture-fund valuation loss from GAAP earnings would imply EPS of roughly $0.58, compared with $0.61 a year earlier.
Expenses rise faster than revenue
Operating expenses climbed 16% from a year earlier to $739 million, exceeding the company’s 11.8% revenue growth rate. The increase included a sharp rise in credit-loss provisions, which expanded from $26 million to $71 million as Robinhood continued building its credit-card lending business.
Income-tax expense nearly doubled to $149 million from $78 million in the previous year’s quarter, even as pretax profit declined by about 1%. Those costs helped explain why profit fell despite higher revenue.
Adjusted EBITDA rose 9% to $808 million, producing a 57% margin, slightly below the 58% margin reported a year earlier. Net interest income, once a major driver of Robinhood’s growth, declined 9% to $415 million. Margin balances nevertheless increased 59% year over year to $22.1 billion, showing that customers continued to borrow against their accounts even as the company’s interest-income mix softened.
Robinhood narrowed its full-year outlook for adjusted operating expenses and stock-based compensation to a range of $2.675 billion to $2.75 billion, lowering the upper end by $25 million. Its fourth-quarter expense forecast calls for $765 million to $840 million, compared with $664 million in the third quarter.
Event contracts offset a crypto slowdown
Crypto revenue totaled $120 million, down 55% from a year earlier, as notional crypto trading volume fell 38% to $49.8 billion. App-based crypto volume dropped 48% year over year, while Bitstamp volume declined 28%.
The yearly decline was severe enough to nearly match the expansion in event-contract revenue. Event contracts added roughly $146 million of revenue from the previous year, while crypto revenue fell by approximately $148 million. That shift gave Robinhood’s trading business a different composition: activity tied to economic, political, sports and other outcomes became a larger source of revenue as retail crypto turnover cooled.
Event-contract revenue rose more than sixfold from a year earlier and increased 11% from the second quarter. Contract volume reached 16.4 billion, more than seven times the year-earlier level and about 21% above the prior quarter. Rothera contributed $28 million of event-contract revenue, according to Robinhood.
Non-sports contracts accounted for 30% of event-contract activity, up from about 15% in the previous quarter. The change suggests Robinhood’s market is extending beyond sports-linked trading toward contracts tied to news, economic releases and other real-world outcomes.
Trading-related revenue overall increased 19% to $867 million. Options remained the largest component, generating $399 million, up 31% year over year and representing about 46% of trading-related revenue. Equity trading revenue rose 41% to $121 million. Options contract volume grew 48%, faster than options revenue, indicating lower revenue per contract than a year earlier.
On-chain revenue changes the crypto mix
Quarterly crypto volumes improved from the summer period despite the year-over-year retreat. Total crypto volume rose 23% from the second quarter, with app volume increasing 13% to $20.6 billion and Bitstamp volume climbing 32% to $29.2 billion.
Monthly crypto trading volume accelerated through the quarter, rising from $10.9 billion in July to $17.5 billion in August and $21.4 billion in September. Yet crypto transaction revenue excluding Robinhood Chain was $94 million, down from $100 million in the prior quarter. App transaction revenue declined from $94 million to $88 million, while Bitstamp revenue was unchanged at $6 million.
Robinhood Chain added $26 million of net revenue during its first full quarter following its mainnet launch, equal to about 22% of the company’s reported crypto revenue. Robinhood said the network processed more than $80 billion in decentralized-exchange trading volume and generated more than $50 million in on-chain fees during the period.
That result places on-chain activity at the center of Robinhood’s crypto business even as revenue from its core app declined. The company’s figures suggest that trading activity is increasingly being routed through its own blockchain infrastructure and connected decentralized venues rather than producing the same revenue profile as conventional in-app spot trades.
Customer assets grow while active users fall
Platform assets increased 19% year over year to $396 billion, while funded customers rose 7% to 28.7 million. Robinhood Gold subscribers grew 34% to roughly 5.2 million, lifting Gold penetration to 18%. Retirement assets rose 51% to $36.6 billion.
Net deposits reached $15.7 billion during the quarter, down from $21.7 billion in the second quarter. Monthly active users fell to 13 million, down 800,000 from a year earlier and 1.1 million from the previous quarter, creating a contrast between rising assets and lower regular engagement.
Robinhood said net deposits exceeded $13 billion between the start of October and the earnings release, including approximately $6 billion connected to Dell family funding for “Trump accounts.” Early October daily trading across stocks, options and crypto was broadly in line with third-quarter levels, the company said, while daily event-contract volume was about 10% higher.
The company also reported that roughly 200,000 customers opened Agentic Trading accounts, generating more than $1.6 billion in notional trading volume during the product’s early rollout. The figures point to a business increasingly dependent on options, event contracts, subscription products and new automated or on-chain services, rather than the simpler retail crypto trading that previously supplied a larger share of Robinhood’s transaction revenue.
Want to trade beyond stocks like Robinhood users? Explore diversified markets with Toobit’s advanced markets platform today.
Disclaimer: The content on this page is provided for general informational purposes only and does not represent the views or financial advice of Toobit. We make no guarantees regarding the accuracy or completeness of this information and shall not be held liable for any errors, omissions, or outcomes resulting from its use. Investing in digital assets involves risk; users should independently evaluate their financial situation and the risks involved. For further details, please consult our Terms of Service and Risk Disclosure.
