Robinhood Q3 EPS Misses at $0.51 as Crypto Revenue Drops 55%
Robinhood posted record Q3 revenue of $1.42B but missed estimates, with EPS of $0.51 vs $0.56 expected. Crypto transaction revenue fell 55% to $120M, event contracts reached $173M, and HOOD slid to about $88.2 after hours.
HOOD closed regular trading Tuesday at $94.56, up 1.85%, then slid to about $88.2 after hours, a drop of roughly 6.7%. The trigger: Robinhood missed Q3 estimates on earnings and revenue. Crypto was the weak spot.
Revenue for the quarter ended September 30 hit a record $1.42 billion, up 12% year over year but short of the roughly $1.44 billion consensus. Diluted EPS fell 16% to $0.51 against about $0.56 expected. Net income dropped 14% to $476 million. Adjusted EPS came in at $0.60, down 3%, under a new non-GAAP measure introduced this quarter. Results absorbed $67 million in unrealized losses, mainly from valuation adjustments at Robinhood Ventures Fund I. Robinhood's Q3 results release is posted on sec.gov.
Crypto sinks, prediction markets surge
Crypto transaction revenue fell 55% year over year to $120 million. Total crypto notional volume dropped 38% to $50 billion: $21 billion through the Robinhood App, $29 billion through Bitstamp.
One early report said crypto revenue beat analyst forecasts. Year over year, it still fell 55%.
Prediction markets filled the gap. Event contracts generated $173 million, more than six times a year earlier, and beat crypto transaction revenue for a second straight quarter. Options revenue rose 31% to $399 million. Equities revenue climbed 41% to $121 million. Transaction-based revenue reached $867 million, up 19%.
Deposits and guidance
Account growth held up better. Robinhood ended the quarter with 5.2 million Gold subscribers, up 34%, and platform assets of $396 billion, up 19%. Net deposits were about $15.7 billion.
October is already running hot. CFO Shiv Verma said deposits for the month exceeded $13 billion, including $6 billion tied to the Dell family's contribution to Trump Accounts.
Robinhood also trimmed the top end of its 2026 adjusted operating expense and SBC outlook by $25 million. The range is now $2.675 billion to $2.75 billion.
Chain and tokenized stocks
Robinhood Chain, the Ethereum layer 2 that went live on mainnet July 1, processed over $80 billion in DEX volume and generated over $50 million in chain fees in its first quarter. Robinhood did not say how much came from tokenized stocks.
On Tuesday, Ondo launched HOODon on the chain alongside 14 other tokenized stocks and ETFs, including Nvidia, Apple and Tesla. Eleven of the 15 have matching Robinhood Stock Tokens with Uniswap v4 StablePair pools. HOODon, BitMine, iShares China Large-Cap ETF and US Copper Index Fund products launched without one.
What it means
Robinhood's mix has moved away from crypto. Options, equities and event contracts now carry growth. Crypto weakness also hit the Q1 miss, when crypto revenue collapsed 47%.
The tokenized equity push is the open question. Our earlier coverage showed tokenized equities reaching $3.8 billion in 2026 volume as Robinhood gained share. Issuer consent remains contested, as AMC's refusal showed. And $50 million in chain fees is small next to $1.42 billion in quarterly revenue.
