MENLO PARK, California / CryptoWire.AI / – Robinhood missed Wall Street profit estimates for the third quarter as a slump in crypto trading cut into earnings. The online brokerage reported earnings of 51 cents a share, below the 56 cents expected by analysts in an LSEG survey. Its shares dropped around 8% before the opening bell on Wednesday. Revenue of $1.42 billion matched expectations and rose 12% from a year earlier.
Robinhood Markets said net income attributable to the company fell to $468 million, compared with $556 million a year ago. Diluted earnings per share fell 16% from 61 cents. Including non-controlling interests, net income was $476 million. Analysts had forecast revenue of about $1.42 billion. Third-quarter revenue rose from $1.27 billion in 2025, giving the company its highest quarterly revenue so far. The results were released on October 27.
Crypto was the main drag. Revenue from cryptocurrency trading fell 55% to $120 million, while crypto notional volumes declined 38% to $50 billion. Transaction-based revenue still rose 19% to $867 million. That figure, however, came in below the $879 million StreetAccount estimate. Shares of crypto stocks tend to move with trading activity in digital assets, and Robinhood is closely watched as a gauge of retail demand.
Prediction markets offset crypto weakness
Prediction markets helped cushion the blow. Event contracts revenue jumped more than sixfold to $173 million, and a record 16.4 billion contracts changed hands. CFO Shiv Verma told CNBC that contracts tied to crypto price movements did well. They allowed customers to express a view on digital assets even as spot trading slowed. Options revenue climbed 31% to $399 million, and equities revenue rose 41% to $121 million. Event contracts are now one of Robinhood’s fastest-growing businesses.
Robinhood has spent recent years broadening its offer beyond share and crypto trading. The company has added wealth management services and subscriptions as it builds a wider financial platform. The diversification aims to reduce its dependence on volatile market activity. Net interest revenue declined 9% to $415 million in the quarter. Other revenue grew 61% to $142 million. Robinhood’s crypto unit avoided charges after the SEC ended a probe in 2025.
Net deposits reach $15.7 billion
Customers added $15.7 billion in net deposits during the quarter. That equals 17% annualised growth relative to total platform assets at the end of the second quarter. Net deposits over the past year reached $71 billion, or 21% growth. Total platform assets climbed 19% to $396 billion. Robinhood had 28.7 million funded customers, up 7%, and 5.2 million Gold subscribers, up 34%. The deposit figures point to steady customer inflows despite weaker crypto markets.
Verma said the quarter showed customers were placing more assets with Robinhood. He also said October net deposits had already topped $13 billion month-to-date. The company now faces the task of keeping event contracts and options growth strong while crypto activity remains subdued. Its next quarterly results will show whether the newer businesses can fully offset the decline in crypto revenue. Analysts will also watch customer growth.