Robinhood's record quarter: prediction markets up, crypto down

What happened

Robinhood Markets reported on Tuesday 27 October that its revenue for the quarter ended Wednesday 30 September was $1.42 billion, 12 percent higher than a year earlier and, the company said, a record. ^{[1, 2]}

Net income was $476 million, down 14 percent from $556 million a year earlier. It included $67 million of unrealized losses, mainly on a venture fund the company runs. Operating expenses grew 16 percent to $739 million. ^[2]

Why it matters

Event contracts, the yes or no trades of prediction markets, brought in $173 million, more than six times a year earlier. Crypto revenue was $120 million, down 55 percent, so the newer line now earns more than the older one. Net interest revenue was $415 million, 9 percent lower, which the company tied to less securities lending and lower short-term rates. ^{[2, 3]}

Revenue line by line

Transaction-based revenue was $867 million, 19 percent higher, according to the release. Options brought $399 million, up 31 percent, and equities $121 million, up 41 percent. Other revenues were $142 million, up 61 percent, led by service revenue from Trump Accounts and Robinhood Gold subscriptions. ^[2]

The quarterly report puts the crypto decline down to 37 percent fewer users placing crypto trades and lower rebate rates from crypto market makers. Revenue from Robinhood Chain, the company's own blockchain, offset part of it. ^[3]

Funded customers reached 28.7 million, 7 percent more than a year earlier, and total platform assets $396 billion, up 19 percent. Customers added $15.7 billion in net deposits, against $21.7 billion in the second quarter, Yahoo Finance reported. Provisions for credit losses were $71 million, from $26 million, as the credit card book grew. ^{[2, 4]}

What the company says comes next

The company lowered the top of its 2026 outlook for adjusted operating expenses and share-based pay to a range of $2.675 billion to $2.75 billion, from $2.775 billion. It said the outlook leaves out credit losses, costs of pending acquisitions and large regulatory matters. ^[2]

Chief Financial Officer Shiv Verma said October net deposits had 'already topped $13 billion month-to-date, including $6 billion from the Dell family's contribution to Trump Accounts.' ^[2]

On Wednesday 28 October the company filed a revised release that changes only how taxes are applied in its adjusted measures, and said no GAAP result is affected. The revision puts adjusted net income at $542 million, where the first release and Yahoo Finance's report said $550 million. ^{[5, 2, 4]}

What settles it next

Robinhood's derivatives unit agreed on Monday 26 October to stop offering new sports-related event contracts in Ohio by Monday 2 November, the 10-Q says, while appeals run in the Sixth Circuit and the Supreme Court. The company said it plans to begin rolling out its products in Dubai in 2027. ^{[3, 2]}

Who it reaches

Robinhood Markets (HOOD) is direct: the results are its own. Coinbase Global (COIN) is adjacent: Wisconsin's April lawsuit claiming sports-related event contracts are illegal betting names Coinbase units beside Robinhood's, according to the 10-Q. ^[3]