MENLO PARK, Calif. — Robinhood collected record revenue in the third quarter, but its profit shrank as cryptocurrency trading cooled and costs rose.
The company reported $1.42 billion in revenue, up 12% from last year. Net income was $476 million, down from $556 million. Earnings per share fell from 61 cents to 51 cents.
That was four cents short of the Wall Street estimate reported by Reuters. Robinhood’s stock lost 7% after regular trading ended.
Crypto trading weighed heavily on the results. The business produced $120 million in transaction revenue, barely half what it brought in during the same period last year.
Activity was stronger elsewhere. Options generated $399 million, a 31% increase, while equities brought in $121 million, up 41%.
Event contracts produced another $173 million. That was more than six times the year-earlier figure.
Taken together, trading revenue reached $867 million, 19% above last year. Robinhood’s net interest revenue slipped 9% to $415 million.
Costs climbed as well. The company spent $739 million during the quarter, 16% more than a year earlier. It cited credit-loss provisions, work on Trump Accounts and Rothera, and higher marketing and growth spending.
Robinhood had 28.7 million funded customers at the end of September, an increase of 1.9 million. They held $396 billion on the platform and added $15.7 billion during the quarter.
Gold subscriptions reached a record 5.2 million. Retirement assets climbed to $36.6 billion, 51% more than a year earlier.
Prediction markets have become one of Robinhood’s fastest-growing products. Customers traded 16.4 billion event contracts during the quarter, more than seven times the previous year’s volume.
Chief Financial Officer Shiv Verma told Reuters that the prediction-market business was nearing $500 million in annual revenue. One analyst interviewed by Reuters questioned whether much of the growth came from current customers shifting activity between products.
Robinhood reduced the high end of its 2026 forecast for adjusted operating expenses and stock compensation by $25 million. The new range is $2.675 billion to $2.75 billion.
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