Robinhood misses Q3 results as crypto revenue rises and forecast market bets increase

Robinhood, the trading app where more than 28 million people keep money to buy stocks and cryptocurrencies and now bet on sports and elections, reported third-quarter revenue of $1.42 billion on Tuesday, missing the roughly $1.43 billion expected by Wall Street.

Earnings came in at $0.51 per share, less than the $0.55 expected by analysts and down from $0.61 a year ago. Earnings per share is earnings divided by the number of shares outstanding, and it’s the number investors use to call a quarter a beat or miss.

Robinhood is the app that brought commission-free trading to a generation of new investors, making its quarterly report one of the clearest reads into what everyday people do with their money. When customers trade more, deposit more, or purchase new products, the change is reflected in these numbers.

Net income was $476 million, down 14% from $556 million a year earlier and down 17% from $573 million in the second quarter. The quarter included a $67 million unrealized loss, meaning a drop in value on paper, on Robinhood Ventures Fund I, which cost $0.07 per share. Adjusted earnings per share, excluding certain items, were $0.60, down 3% from last year.

Event contracts, yes or no bets that pay out $1 if a game, election or economic report goes in a certain direction, brought in $173 million, up from $156 million in the second quarter, when they surpassed crypto revenues for the first time. Customers exchanged a record 16.4 billion, more than seven times a year earlier.

“I think we’re at the very beginning of a prediction market supercycle,” CEO Vlad Tenev said in December last year, when Robinhood added NFL player contracts and parlay-style combos that only pay out if each outcome is met.

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Crypto trading revenue increased to $120 million from $100 million in the second quarter, but remained down 55% from the $268 million earned by Robinhood in the third quarter of 2025. Customers traded $50 billion in crypto during the quarter, down 38% from the previous year, with $21 billion on the Robinhood app and $29 billion through Bitstamp, the crypto exchange it acquired.

Robinhood Chain went live on July 1 as a layer 2 network, that is, a blockchain that runs on Ethereum to make transactions cheaper and faster. Its first few weeks were driven by meme coins, joke-themed tokens, rather than the token stocks they were built for, which are digital versions of company shares traded on a blockchain.

By the end of August, the chain had earned approximately $3.13 million in 30-day fees, more than Ethereum and Base’s $2.47 million and $2.89 million.

Hours before the report was released, Robinhood announced a deal with Ripple that brings RLUSD, a stablecoin (a cryptographic token designed to be worth one dollar), to Robinhood Chain and Bitstamp, with an integrated rollout expected later this year. RLUSD has a market value above $2.5 billion, and Ripple will also provide Robinhood’s treasury software and loans to Bitstamp traders.

Robinhood stock closed Tuesday at around $94.61 and slipped after hours. The stock is down about 18% this year and about 37% below its 52-week high of $150.47.

Robinhood cut its 2026 outlook for adjusted operating expenses and stock-based compensation to $2.675 billion to $2.75 billion, narrowing the high end of the $2.675 billion to $2.775 billion range it set in July.