Robinhood’s reported third-quarter crypto revenue rose 20% from the previous quarter to $120 million, but the increase came almost entirely from fees generated by its newly launched Robinhood Chain rather than from trading in the brokerage app. Excluding the chain’s $26 million contribution, crypto trading revenue fell 6% quarter over quarter to $94 million and was down 55% from a year earlier, according to the company’s quarterly results.
The figures place Robinhood Chain at the center of the company’s changing transaction-revenue mix. The Arbitrum-based layer-2 network launched its mainnet on July 1 and processed more than $80 billion in decentralized exchange volume through the end of September, Robinhood said. That activity produced more than $50 million in onchain fees, with roughly half recognized as crypto revenue during the quarter.
The chain’s contribution helped crypto revenue recover sequentially even as the company’s established app-based trading business generated less revenue from a higher level of activity. Crypto trading volume in the brokerage application rose to $50 billion in the third quarter from $40 billion in the second quarter, while crypto trading revenue declined. The gap points to lower revenue earned per dollar of customer trading volume, whether through lower fee yields, changes in product mix, or both.
Memecoin activity drove Robinhood Chain’s fee surge
Robinhood Chain’s early revenue was heavily concentrated in a brief burst of speculative activity. The 12 days between Aug. 30 and Sept. 10 accounted for 74% of the network’s quarterly fees, according to Robinhood. Daily decentralized exchange volume exceeded $1.5 billion at one point during that period, while daily fees surpassed those recorded on Ethereum mainnet and Base.
More than 80% of the chain’s decentralized exchange volume was linked to memecoin trading, Robinhood said. That concentration leaves the network’s initial revenue profile dependent on a category of trading that can expand quickly during periods of heightened speculation and contract just as sharply when sentiment changes.
Robinhood recognized approximately $26 million of the more than $50 million in fees generated on the chain. The difference reflects allocations to the Arbitrum DAO and participants at the application layer, implying that Robinhood retained about 50% of gross onchain fees as revenue.
That model gives Robinhood a new source of transaction income beyond app commissions, but the third-quarter numbers also show how much its early performance relied on a narrow window of high-turnover memecoin activity. Sustaining the contribution would require either recurring bursts of comparable trading or a broader base of activity across decentralized finance applications, stablecoin transfers, tokenized assets, or other uses of the network.
Event contracts generated more revenue than crypto trading
Crypto’s reduced share of Robinhood’s revenue came as event contracts continued to grow. The company reported $173 million in event-contract revenue for the third quarter, up more than sixfold from a year earlier and 11% from the prior quarter. Event contracts generated more revenue than crypto trading for the second consecutive quarter.
The product allows users to trade contracts tied to the outcomes of specified events. Robinhood’s expanding role in this market is supported by Rothera, its proprietary prediction-market exchange, alongside regulatory licensing and product spending linked to the category.
Robinhood said it now has 14 business lines generating annualized revenue above $100 million. Three were added in 2026: Rothera, the company’s credit card product, and Robinhood Legend, its advanced trading platform. The expanding product roster has reduced crypto trading’s weight in the company’s overall revenue mix, with crypto representing about 8.4% of third-quarter revenue.
Options and event contracts now account for larger portions of transaction-based revenue. The shift does not eliminate Robinhood’s exposure to digital-asset markets, but it makes reported crypto revenue less useful as a standalone measure of the company’s core brokerage trading activity. The headline crypto result now combines traditional trading revenue with income earned from operating blockchain infrastructure.
Record revenue came with higher expansion costs
Robinhood reported total third-quarter revenue of $1.42 billion, a company record and a 12% increase from a year earlier. Net profit was $476 million, down 14% year over year, while diluted earnings per share came in at $0.51, below a $0.55 market consensus figure and 16% lower than the prior-year period.
The company linked higher costs to its effort to build new business lines, including Robinhood Chain, the acquisitions of Bitstamp and WonderFi, the Robinhood Earn lending product, and licensing work for event contracts. Those initiatives expanded Robinhood’s set of products while also raising operating expenses during the quarter.
Shiv Verma, Robinhood’s chief financial officer, said October net deposits exceeded $13 billion, including $6 billion from the Dell family into Trump Accounts. Robinhood Gold subscribers reached a record 5.2 million, he said. The company also reported platform assets of $396 billion and 28.7 million funded accounts.
The results show a company increasingly earning transaction revenue from activity it operates directly, including prediction-market infrastructure and a layer-2 chain, rather than relying principally on commissions from users buying and selling established cryptocurrencies. For Robinhood Chain, the next quarters will test whether fees can remain meaningful once memecoin trading normalizes from the short, intense surge that defined much of its first full quarter.
Explore how CEX and DEX models compare to Robinhood Chain’s Arbitrum-based approach in this detailed breakdown.
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