Robinhood Crypto Revenue Falls 55% to $120M but Beats Forecasts

According to the Robinhood Q3 earnings release published on October 27, 2026, crypto revenue reached $120 million for the third quarter. Although this figure missed the year-earlier result by 55%, it surpassed the $114.1 million predicted by analysts and grew 20% compared to the second quarter’s $100 million.

Cryptocurrency accounted for a mere 8.4% of total quarterly revenue, dropping from approximately 21% during the same period last year. Because this crypto beat coincided with a broader company-wide earnings miss, Robinhood (HOOD) stock dropped roughly 5% in after-hours trading.

July’s Chain Launch Followed a Weak Second Quarter

Event contracts generated $156 million in the second quarter, surpassing crypto revenue for the first time. Robinhood entered the third quarter with a new business line outperforming its crypto trading operations, alongside a newly launched blockchain intended to expand its digital asset footprint.

Read More: What Is Robinhood Chain? How Its $51M Debut Beat Ethereum

Robinhood Chain officially launched on July 1. Based on company figures, the network facilitated over $80 billion in decentralized exchange trading volume and generated more than $50 million in chain fees throughout its initial quarter on the mainnet.

Robinhood Crypto Revenue Rebounds in Q3 as Annual Trading Slows

Trading activity declined across both the primary Robinhood app and Bitstamp, the exchange acquired by Robinhood. Combined crypto trading volume dropped 38% year over year to reach $50 billion, with the Robinhood app experiencing a 48% contraction and Bitstamp dropping 28%.

Prediction Markets Helped Lift Robinhood Sales to a Record

Overall company revenue increased by 12% year over year to reach a record $1.424 billion, falling just short of the roughly $1.43 billion forecast by analysts. Options revenue expanded 31% to $399 million, while equities revenue surged 41% to $121 million.

Prediction markets further extended their lead over crypto operations. Fueled by a surge past their second-quarter milestone, customers traded a record 16.4 billion event contracts—exceeding seven times the total from the previous year.

Robinhood reported earnings of $0.51 per share, missing the anticipated $0.55 consensus. Net income declined 14% year over year to $476 million.

The quarter was impacted by a $67 million unrealized loss on Robinhood Ventures Fund I, which accounted for $0.07 per share. Adjusted earnings, excluding certain specific items, came to $0.60 per share, marking a 3% decrease from the previous year.

Robinhood Signed a Ripple Deal Hours Before Earnings

Just hours prior to the earnings release, Robinhood announced a partnership with Ripple to integrate RLUSD onto Robinhood Chain and Bitstamp. Additionally, Ripple agreed to provide treasury software to Robinhood alongside lending facilities for Bitstamp traders. Robinhood tightened its full-year expense outlook while scheduling the in-app RLUSD rollout for later in 2026.

Introducing the stablecoin directly into the application serves as the next critical product milestone. For the broader trading business, the subsequent test is straightforward: determining whether the recent quarterly recovery in crypto revenue can be sustained following a year of significantly diminished activity.

FAQ

How was the quarter’s $50 billion in crypto trading volume split between the Robinhood app and Bitstamp?

The Robinhood app handled $21 billion, Bitstamp $29 billion. The acquired exchange carried the larger share of the combined total.

Why did Robinhood shares fall despite the crypto revenue beat?

The crypto beat sat inside a company-wide miss. Revenue of $1.424 billion landed just under the approximately $1.43 billion analysts expected, and earnings of $0.51 per share fell short of the $0.55 consensus. Net income dropped 14% year over year to $476 million, and shares fell about 5% after hours.

How much revenue did Robinhood’s prediction markets generate in the third quarter?

Prediction markets generated $173 million, up from $156 million in the second quarter — more than six times the year-earlier figure.

When is RLUSD scheduled to reach the Robinhood app?

The in-app rollout is planned for later in 2026, part of the Ripple agreement announced hours before Robinhood’s October 27 earnings release.

What is Robinhood’s revised 2026 expense guidance?

Robinhood expects adjusted operating expenses and stock-based compensation of $2.675 billion to $2.75 billion. The lower end is unchanged from July’s outlook; the previous upper end was $2.775 billion.

What are the key takeaways from Robinhood’s Q3 report?

Robinhood posted record company-wide revenue of $1.424 billion driven by prediction markets, options, and equities, though it missed consensus earnings estimates. Meanwhile, crypto revenue fell 55% year-over-year to $120 million despite beating expectations.

This article is for information only and is not financial advice.