Green crypto revenue, red Robinhood stock: the earnings mismatch in full color

Robinhood (HOOD) shares fell nearly 4% in after-hours trading on Tuesday after the company earned 51 cents a share in the third quarter, short of the 56 cents analysts expected. Robinhood Markets released its financial results for the third quarter of 2026 on October 27, 2026. Crypto revenue beat forecasts but did not prevent the slide, which erased a 1.85% regular-session gain. The stock closed at $94.56 before changing hands at $90.90 by 4:11 p.m. ET, a $3.66 loss per share heading into Wednesday’s open.

Revenue rose 12% from a year earlier to a record $1.42 billion, against the $1.44 billion Wall Street expected, while net income fell 14% to $476 million. About 7 cents per share was erased by a $67 million paper loss on Robinhood Ventures Fund I, a fund holding private-company stakes that is revalued each quarter. Operating expenses also climbed 16% to $739 million.

Crypto revenue reached $120 million, above the roughly $114 million analysts forecast and up from $100 million in the second quarter, although it remained 55% lower than a year earlier as crypto trading volume on the platform fell 38% to $50 billion. Event contracts brought in $173 million, over six times their year-earlier level. Chief executive Vlad Tenev has said crypto contracts could overtake sports as the category’s biggest driver. Rothera, the exchange Robinhood runs with trading firm Susquehanna International Group and regulated by the Commodity Futures Trading Commission (CFTC), passed $100 million in annualized revenue in its first full quarter. Bernstein had forecast roughly $1.5 billion in Robinhood’s quarterly revenue while keeping a $160 price target.

Subscribers to Robinhood Gold rose 34% to a record 5.2 million, and customers added $15.7 billion in net deposits during the quarter. Shiv Verma, Robinhood CFO, said in the company’s release: “And we’re entering Q4 with strong momentum, as October Net Deposits have already topped $13 billion month-to-date.” The October figure includes a $6 billion contribution from the Dell family to Trump Accounts, which Robinhood services.

Robinhood’s revenue now leans more on options, up 31% to $399 million, and event contracts. The city of Baltimore has sued prediction market operators over sports contracts. The company entered Wednesday with more revenue coming from those businesses after a quarter of falling profit.