Robinhood shares drop 5% after missing Q3 profit estimates
- Robinhood reported Q3 revenue of $1.42 billion, missing the $1.43 billion target.
- Earnings per share reached $0.51, falling short of the $0.55 analyst projection.
- Crypto revenue dropped 55% year-over-year to $120 million.
- Event contract trading hit a record 16.4 billion contracts, generating $173 million.
- Shares declined 5% on October 27 following the earnings miss.
Robinhood reported third-quarter revenue of $1.42 billion on October 27, 2026, missing analyst expectations of approximately $1.43 billion. The company earned $0.51 per share, falling short of the $0.55 per share projected by analysts. This figure also represents a decline from the $0.61 per share reported one year earlier.
Shares of the company declined by 5% on October 27, 2026, as a downturn in cryptocurrency activity impacted profits. The stock price fell following this earnings miss, despite the platform recording record-high trading volumes.
Net income falls 14% to $476 million
Net income for the quarter reached $476 million, a 14% decrease from $556 million recorded one year ago. This profit figure is also 17% lower than the $573 million reported in the second quarter.
The results included a $67 million unrealized loss on the Robinhood Ventures Fund I. This loss impacted earnings by $0.07 per share. Excluding specific items, adjusted earnings per share stood at $0.60, marking a 3% decline compared to the prior year.
Event contracts and prediction markets drive growth
In the second quarter, event contract revenue climbed to $173 million, up from $156 million. A record 16.4 billion of these contracts were traded by customers, representing a volume more than seven times greater than that of the previous year.
Financial performance in the third quarter of 2026 was bolstered by the introduction of Trump accounts and prediction markets. These new segments helped offset weakness in the company’s crypto business.
Analysts at Bernstein forecast that these prediction markets could reach $1.7 billion in revenue by 2028. They expect this figure to surpass the revenue generated by the company's crypto operations.
Crypto revenue faces 55% year-over-year decline
Cryptocurrency revenue reached $120 million for the third quarter. This is an increase from $100 million reported in the second quarter. This figure represents a 55% decline compared to the same period a year ago.
The segment previously experienced a 38% decrease in revenue during the quarter preceding the Q3 2026 report. MarketWatch reported on October 27, 2026, that the company's performance was hindered by the crypto market.
Robinhood partners with Ripple and updates guidance
The CFO of Robinhood said the company is successfully expanding beyond its reliance on cryptocurrency and that momentum is currently building. Prior to its earnings release, the company entered into a partnership with Ripple to further its expansion into the cryptocurrency market.
Aiming to introduce the RLUSD stablecoin to Bitstamp and the Robinhood Chain, the collaboration with Ripple has an in-app release planned for later in 2026. Since its July 1 launch as a layer-2 network on Ethereum, Robinhood Chain produced roughly $3.13 million in fees during a 30-day window concluding at the end of August.
The company's prior range of $2.675 billion to $2.775 billion has had its upper limit reduced by this change.
Stock performance reflects earnings miss
Robinhood shares closed Tuesday at approximately $94.61 and declined in after-hours trading. The stock is down roughly 18% for the year.
Trading at approximately 37% beneath its 52-week peak of $150.47, the share price is currently at this level.
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- Robinhood Misses Q3 Earnings as Crypto Revenue Rises and Prediction Market Bets Grow (decrypt.co)
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