Robinhood shares dropped about 5% in after-hours trading after the online brokerage reported a third-quarter profit of $468 million as rising operating expenses and a cryptocurrency slump weighed on the company despite record trading volumes across stocks, options, and prediction markets.
Robinhood Markets reported net income of $468 million for the period ended September 30, 2026, translating to diluted earnings of 51 cents per share. That figure missed the average analyst estimate of 56 cents per share. Revenue rose 12% to $1.42 billion, matching LSEG survey expectations, though net income fell from $556 million during the same period a year earlier. The stock dropped roughly 5% in after-hours trading following the announcement, extending a 2026 downward slide that leaves the brokerage on pace for its worst annual performance since 2022.
Transaction Growth and the Cryptocurrency Slump
Trading activity across the platform reached record levels during the quarter, driven by user engagement in equities, options, and prediction markets. Total transaction revenue climbed 19% from a year earlier to $867 million. Options trading revenue jumped 31% to $399 million, and equities trading revenue rose 41% to $121 million. Event contracts emerged as a primary growth driver, with customers trading a record 16.4 billion contracts during the quarter—a more than 500% increase over the previous year.
Those gains collided with a severe downturn in digital assets. Cryptocurrency transaction revenue plunged 55% to $120 million as spot trading and asset prices remained mired in a yearlong slump. Shiv Verma noted that event contracts tied to crypto movements provided users with an alternative method to trade the asset class despite the spot market slowdown.
Verma added during a call with reporters that the core business is on fire
, even as net interest revenue dropped 9% to $415 million due to reduced securities lending activity stemming from fewer initial public offerings and less disagreement among investors over the prospects of individual companies.
Rising Costs and Credit Card Expansion Pressures
Operating expenses grew 16% to $739 million during the quarter, driven by higher marketing costs, the launch of the Trump Accounts platform, and provisions for credit-card losses. Provisions for credit losses nearly tripled to $71 million as Robinhood scaled up its credit card operations. The company also reported $67 million in unrealized investment losses, primarily from its venture fund. In addition, the brokerage disclosed book-value declines stemming from its holdings in Robinhood Ventures I and II, two closed-end funds.
| Financial Metric | Q3 2026 Reported Value | Comparison / Change |
|---|---|---|
| Total Revenue | $1.42 billion | Up 12% year-over-year |
| Net Income | $468 million | Down from $556 million a year earlier |
| Total Transaction Revenue | $867 million | Up 19% year-over-year |
| Cryptocurrency Revenue | $120 million | Down 55% year-over-year |
| Operating Expenses | $739 million | Up 16% year-over-year |
Net Deposits and Platform Asset Growth
Despite the profit miss, customer asset gathering remained active. Net deposits totaled $15.7 billion for the quarter, compared with $21.7 billion in the previous quarter. During the preceding twelve months, net inflows reached $71 billion, marking a 21% expansion relative to the total assets held on the platform at the close of Q3 2025. According to Verma, the firm revealed that inbound funds had already cleared $13 billion, bolstered in part by financial backing from the Dell family toward Trump Accounts.
