Robinhood’s Third-Quarter Earnings Show Mixed Performance

In the wake of its recent earnings report for the quarter ending September 30, Robinhood experienced a 4% drop in after-hours trading. The decline came as investors reacted to results that fell short of expectations, despite notable growth in certain trading sectors.

Earnings Overview

For the third quarter, Robinhood reported:

• Earnings per Share (EPS): $0.51 compared to an expected $0.56
• Revenue: $1.42 billion, aligning with Wall Street predictions

Net income for the period was $468 million, or 51 cents per share, a decrease from $556 million, or 61 cents per share, in the same quarter of the previous year. However, the revenue reflected a 12% increase from $1.27 billion year-over-year.

Revenue Insights

Transaction-based revenue reached $867 million, though it fell short of the $879 million anticipated by analysts. This discrepancy raises questions about Robinhood’s ability to maintain trading momentum and reduce its dependency on unpredictable market conditions.

During the quarter, Robinhood concentrated on diversifying its offerings, evolving its brokerage app into a more comprehensive financial services platform.

Key Revenue Highlights

Specific segments of Robinhood’s revenue showed promising growth:

• Event Contracts Revenue: Increased over 500%
• Options Trading Revenue: Grew by 31% to $399 million
• Equities Revenue: Increased by 41% to $121 million

This positive performance in certain areas, however, was tempered by a notable decline in cryptocurrency revenue, which plummeted 55% to $120 million.

Management Insights

Shiv Verma, Chief Financial Officer of Robinhood, indicated that event contracts tied to cryptocurrency movements performed well, offering an alternative trading avenue for investors during a period of declining crypto prices and spot trading.

Deposits and Growth Trends

Net deposits on the Robinhood platform totaled $15.7 billion for the quarter, representing a 17% annualized growth rate based on total platform assets from the end of the second quarter of 2026. Over the past year, total net deposits reached $71 billion, marking a 21% increase compared to total platform assets at the close of the third quarter of 2025.

As Robinhood continues to navigate a changing market landscape, its performance metrics in key trading areas will be critical in evaluating future growth and sustainability.

—Reporting contributed by CNBC’s Robert Hum and Kate Rooney.