Robinhood Q3: Record $1.42B Revenue, but Net Income Falls 16% as Crypto Revenue Halves
HOOD sits 37% above its 52-week low of $63.515.
Summary
Robinhood posted record Q3 revenue of $1.42B, up 12%, but net income fell 16% to $468M as expenses and taxes rose and crypto revenue halved. Event contracts now generate $173M a quarter, though states keep restricting sports event contracts.
Key Events · Earnings and Guidance · HOOD
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Record Revenue, Lower Profit
Total net revenues rose 12% to $1,424 million from $1,274 million, but net income attributable to Robinhood fell 16% to $468 million from $556 million and diluted EPS dropped to $0.51 from $0.61.
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Event Contracts Offset Crypto Slump
Event contracts revenue jumped 541% to $173 million (12% of total net revenues) while cryptocurrency transaction revenue fell 55% to $120 million; options rose 31% to $399 million.
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Expenses and Tax Rate Climb
Total operating expenses increased 16% to $739 million, and the effective tax rate rose to 23.8% from 12.3%, driven by state income taxes and fewer excess share-based compensation tax benefits.
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Crypto.com Equity Deal Disclosed
In September 2026 Robinhood agreed to route a selection of event contracts to Crypto.com's CFTC-regulated exchange in exchange for up to a 10% equity interest in Crypto.com and affiliates over a three-year term.
Analysis · HOOD · Crypto Assets
The story in Robinhood's Q3 is a business rotating away from crypto and toward event contracts and options. Total net revenues rose 12% to $1.42B, yet net income attributable to Robinhood fell 16% to $468M and diluted EPS dropped to $0.51 from $0.61, as operating expenses grew 16% to $739M and the tax rate jumped to 23.8% from 12.3%. Event contracts brought in $173M, up 541% year-over-year, while cryptocurrency transaction revenue fell 55% to $120M — a mix shift that matters because crypto was the higher-margin growth story a year ago. Also disclosed in the 10-Q: a Crypto.com agreement giving Robinhood up to a 10% equity stake over three years in exchange for routing event contracts, the deconsolidation of RVI and RVII, and $2.2B of 0.00% convertible notes. The bigger risk flag is regulatory. Robinhood agreed on October 26, 2026 to stop offering new sports-related event contracts in Ohio by November 2, 2026 — the latest state to restrict the prediction-market business that is now 12% of revenue.
How filings like this one have moved
In the 30 days to Oct 28, 2026, 38.5% of the 1020 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.49%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, HOOD was trading at $87.31 on NASDAQ in the Crypto Assets sector, with a market capitalization of approximately $85B. The 52-week trading range was $63.52 to $150.47. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.