Robinhood reported total net revenue of $1.42 billion for the third quarter, marking a 12% year-over-year increase. Despite this growth, the company's shares fell approximately 3% in after-hours trading as transaction revenue missed Wall Street expectations.
The surge in performance was driven by options and event contracts. Options trading generated $399 million, a 31% increase, while volumes for these contracts rose 48%. Revenue from event contracts grew more than sixfold, reaching $173 million.
In contrast, the crypto segment saw a significant decline. Crypto revenue dropped 55% to $120 million, with notional trading volumes falling 38% to $50 billion. Currently, event contracts and options generate significantly more revenue than the company's crypto business.
Overall net income for the quarter decreased by 14% to $476 million, or $0.51 per diluted share. Total platform assets reached $396 billion, and the company noted that 14 of its business lines now each generate over $100 million in annualized revenue.
