Robinhood shares dropped nearly 4% in after-hours trading following the release of its third-quarter 2026 financial results. The company reported earnings of 51 cents per share, missing the 56 cents expected by analysts. Revenue reached a record $1.42 billion, falling short of the projected $1.44 billion, while net income declined 14% to $476 million.
Operating expenses rose 16% to $739 million. The quarterly results were impacted by a $67 million paper loss from the Robinhood Ventures Fund I. Despite these challenges, crypto revenue reached $120 million, exceeding the forecasted $114 million. However, this figure remains 55% lower than the previous year, with crypto trading volume falling 38% to $50 billion.
The company saw growth in other areas, as revenue from event contracts reached $173 million, a sixfold increase year-over-year. Additionally, the number of Robinhood Gold subscribers grew 34% to a record 5.2 million. Customers added $15.7 billion in net deposits during the quarter, with October deposits already exceeding $13 billion month-to-date, including a $6 billion contribution to specific accounts.
Robinhood's revenue structure is shifting toward options, which rose 31% to $399 million, and event contracts. The Rothera exchange, operated with Susquehanna International Group, surpassed $100 million in annualized revenue during its first full quarter. Investors are now weighing this changing revenue mix against the overall decline in quarterly profit.
