Robinhood (NASDAQ: HOOD) revenue climbs 12% but EPS slips and crypto sinks

What happened

Robinhood Markets, Inc. (NASDAQ: HOOD) grew third-quarter revenue 12% to $1.42 billion, but net income fell 14% to $476 million.

Diluted earnings per share fell 16% to $0.51. Revenue rose $150 million from $1.27 billion in the third quarter of 2025, by OptimistFi's calculation from the income statement. Robinhood reported the results Oct. 27 for the quarter that ended Sept. 30.

The company also trimmed its 2026 expense outlook. It now expects adjusted operating expenses and share-based compensation (SBC) of $2.67 billion to $2.75 billion, down from a prior range of $2.67 billion to $2.77 billion. Robinhood credited ongoing efficiency gains.

Key numbers

Metric	Latest	Change	Source
Total net revenues	$1.42 billion	from $1.27 billion, +12%	SEC 8-K, Exhibit 99.1
Net income	$476 million	from $556 million, -14%	SEC 8-K, Exhibit 99.1
Diluted EPS	$0.51	from $0.61, -16%	SEC 8-K, Exhibit 99.1
Adjusted EPS (non-GAAP)	$0.60	from $0.62, -3%	SEC 8-K, Exhibit 99.1
Cryptocurrencies revenue	$120 million	-55%	SEC 8-K, Exhibit 99.1
2026 Adjusted Operating Expenses and SBC outlook, top end	$2.75 billion	-$25 million	SEC 8-K, Exhibit 99.1

Read more: Robinhood Markets (HOOD) company research

Where the revenue came from

Newer products carried the quarter while crypto fell back. Transaction-based revenue rose 19% to $867 million. Event contracts brought in $173 million, up over 6x, options $399 million, up 31%, and equities $121 million, up 41%.

Cryptocurrencies revenue fell 55% to $120 million, and crypto notional trading volumes fell 38% to $50 billion.

The other two revenue lines moved in opposite directions. Net interest revenue fell 9% to $415 million on lower securities lending and short-term interest rates, partly offset by growth in interest-earning assets. Other revenue rose 61% to $142 million, led by Trump Account service revenues and higher Gold subscription revenues.

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Why it matters

OptimistFi has argued that Robinhood works if its app grows into a broader platform whose results do not hang on one trading cycle. The quarter supports that view on revenue, because total revenue grew while crypto slumped.

Rothera, the joint venture with Susquehanna International Group, passed $100 million in annualized revenues in its first full quarter. The company says 14 business lines have now reached that mark. Gold subscribers rose 34% to a record 5.2 million, and Funded Customers rose 7% to 28.7 million. Total Platform Assets rose 19% to $396 billion. Robinhood Chain became a top-five chain by revenue and volume in its first quarter on Mainnet.

Profit tells a weaker story. Total operating expenses rose 16% to $739 million. Drivers were higher provisions for credit losses as the credit card loan book grows, costs for Trump Accounts and Rothera, and marketing and growth investments. The credit loss provision alone was $71 million, up from $26 million a year earlier.

Income before taxes slipped 1% to $625 million, while the tax provision rose 91% to $149 million. Net income also included $67 million, or $0.07 per diluted share, of unrealized losses mainly tied to the mark-to-market of Robinhood Ventures Fund I. Adjusted EPS, a non-GAAP measure introduced this quarter, fell 3% to $0.60.

Where costs and the outlook stand

Adjusted operating expenses and SBC rose 8% in the quarter, slower than revenue. Adjusted EBITDA, another non-GAAP measure, rose 9% to $808 million.

The outlook leaves out provision for credit losses, costs of pending acquisitions, equity costs tied to the CFO transition and potential significant regulatory matters, among other items. So the credit loss provision, a growing cost, sits outside the range.

Spending on the outlook's measure was $1.91 billion through nine months. By OptimistFi's calculation, the range leaves $763 million to $838 million for the fourth quarter, against $664 million in the third. Even the lowered ceiling allows a step up in spending.

What's next

Robinhood said October Net Deposits had already topped $13 billion month-to-date, including $6 billion from the Dell family's contribution to Trump Accounts. The company plans to begin rolling out its product suite in Dubai in 2027, after authorization from the Dubai Financial Services Authority.

The next quarterly report will show whether deposit momentum and the lower expense ceiling turn into steadier profit. A fourth-quarter figure above $838 million for adjusted operating expenses and SBC would put the full-year outlook out of reach.

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