Robin Hood Shares fell 4% in after-hours trading as investors digested weaker-than-expected third-quarter earnings despite growth in options trading and prediction markets.
Here’s how the brokerage performed in its quarter ended September 30, compared to Wall Street estimates, based on a survey of analysts by LSEG:
- Earnings per share: 51 cents versus 56 cents expected
- Revenue: $1.42 billion versus $1.42 billion expected
Robinhood’s net income fell to $468 million, or 51 cents per share, from $556 million, or 61 cents per share, a year ago. Revenue represented a 12% increase from $1.27 billion in the same quarter last year.
Despite the gain, transaction-based revenue of $867 million fell short of StreetAccount’s Wall Street estimate of $879 million, putting focus on whether Robinhood can maintain momentum in its trading business and reduce its reliance on volatile market activity.
Robinhood has diversified its business as it tries to expand its brokerage app into a broader financial services platform. Options trading and event-driven contracts became increasingly important sources of trading revenue, while the company continued to invest in wealth management, subscriptions and other offerings.
Transaction-based revenue increased 19% from the same period last year to $867 million, driven primarily by a more than 500% increase in event contract revenue. Additionally, options revenue increased 31% to $399 million and stock revenue increased 41% to $121 million.
These gains were partially offset by cryptocurrency revenue, which fell 55% to $120 million.
CFO Shiv Verma told CNBC that crypto movement event contracts performed well during the quarter, providing investors with another way to express their views on crypto despite falling prices and spot trading.
Net deposits on the Robinhood platform totaled $15.7 billion for the quarter, an annualized growth rate of 17% based on the platform’s total assets at the end of the second quarter of 2026. Over the past year, net deposits totaled $71 billion, a growth of 21% over the platform’s total assets at the end of the third quarter of 2025.
—With reporting by CNBC’s Robert Hum and Kate Rooney
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