Robinhood Reports Record Q3 Revenue of $1.42 Billion Despite 55% Drop in Crypto Revenue
Robinhood Markets reported its highest revenue quarter to date, achieving $1.42 billion in total net revenue for Q3 2026, marking a 12% increase year-over-year. However, the company faced a diluted earnings per share (EPS) of $0.51, falling short of analyst expectations of approximately $0.54 to $0.57.
The substantial revenue growth was largely driven by transaction-based revenue, which reached $867 million, up 19% from the previous year. Notably, event contracts, which allow users to place bets on outcomes like elections or sports, generated $173 million, more than six times its level from a year earlier. Options revenue also saw a significant increase of 31%, totaling $399 million, while equities revenue rose 41% to $121 million.
In stark contrast, Robinhood's cryptocurrency revenue plummeted by 55% to $120 million, with notional crypto trading volume dropping 38% year-over-year to $50 billion. This decline in crypto revenue is particularly notable given Robinhood's historical association with retail crypto trading.
Despite the overall revenue increase, the EPS decline can be attributed to two main factors: the significant drop in crypto revenue, which typically yields high margins for brokerages, and $67 million in unrealized investment losses related to Robinhood Ventures Fund I. These losses, although not realized through sales, still negatively impacted reported earnings.
On a positive note, Robinhood's customer metrics showed growth, with funded customers reaching 28.7 million and total platform assets increasing by 19% to $396 billion. The subscription service, Robinhood Gold, also grew by 34%, reaching a record 5.2 million subscribers. Additionally, net deposits for the quarter totaled $16 billion, indicating strong user engagement.
While the revenue diversification strategy appears to be effective, the significant drop in crypto revenue raises concerns about retail participation in digital asset trading. The mixed results suggest that while Robinhood is successfully expanding its revenue streams, it has not yet fully insulated its earnings from the volatility in the crypto market.
Updated 21:02 UTC
Latest Updates on Robinhood
- Robinhood now operates 14 separate business lines, each generating over $100 million in annualized revenue, up from 11 at the end of 2025.
- The newest addition to this group is Rothera, a prediction markets and exchange joint venture with Susquehanna, which launched earlier this year and surpassed the $100 million threshold in its first full quarter.
- Rothera has facilitated over 6.4 billion contracts traded since its debut.
- Robinhood's total net revenue for Q3 2026 reached a record $1.42 billion, a 12% increase year-over-year.
- Transaction-based revenue was reported at $867 million, growing 19% year-over-year, with options trading contributing $399 million (up 31%) and equities trading generating $121 million (up 41%).
- Crypto revenue fell 55% to $120 million, with equities revenue narrowly surpassing it by $1 million this quarter.
- Robinhood Gold, the company's paid membership tier, achieved a record 5.2 million subscribers.
Updated 21:03 UTC
New Facts from Robinhood's Q3 Report
- Robinhood reported a total net revenue of $1.42 billion for Q3, marking a 12% increase year over year.
- Transaction-based revenue rose 19% year over year to $867 million, primarily driven by options trading.
- Options trading generated $399 million in revenue, up 31% from the previous year, with volumes increasing by 48%.
- Event contracts revenue reached $173 million, representing over six times growth year over year, with trading volume hitting 16.4 billion.
- Crypto revenue fell 55% to $120 million, with notional trading volumes dropping 38% to $50 billion.
- Net income declined 14% to $476 million, equating to $0.51 per diluted share, while adjusted earnings per share were $0.60.
- Robinhood Gold subscriptions reached 5.2 million, the highest reported figure to date.
- Total platform assets increased to $396 billion, with 14 business lines generating over $100 million in annualized revenue each.
Updated 21:03 UTC
New Developments in Robinhood's AI Trading Accounts
As of September 30, 2026, approximately 200,000 Robinhood customers have opened AI-powered trading accounts known as Agentic Trading Accounts. These accounts have generated over $1.6 billion in notional trading volume.
Robinhood launched the beta for these accounts on May 27, 2026, and adoption has grown significantly, reaching 50,000 customers shortly after launch, nearly 100,000 by late July, and surpassing 150,000 by late September.
At the HOOD Summit in Houston in late September, Robinhood introduced Robinhood Agents within its app, featuring AI models from OpenAI and Anthropic for trading automation. These agents are currently performing around 30 million tool queries on the platform each day.
Users can connect AI models for market analysis, trading strategy, and executing automated strategies, referred to as "Loops." The product currently supports stocks and options, with plans to expand into crypto trading.
Despite the growth in AI trading accounts, they represent a small fraction of Robinhood's overall user base, which remains near 29 million funded customers.
FAQ
What was Robinhood's total net revenue for Q3 2026?
Robinhood reported a total net revenue of $1.42 billion for Q3 2026, marking a 12% increase year-over-year.
How did Robinhood's earnings per share (EPS) perform in Q3 2026?
Robinhood had a diluted EPS of $0.51 in Q3 2026, which fell short of analyst expectations of approximately $0.54 to $0.57.
What contributed to the revenue growth in Q3 2026 for Robinhood?
The substantial revenue growth was largely driven by transaction-based revenue, which reached $867 million, up 19% from the previous year, along with significant increases in options and equities revenue.
What was the impact of cryptocurrency trading on Robinhood's revenue?
Robinhood's cryptocurrency revenue plummeted by 55% to $120 million, with notional crypto trading volume dropping 38% year-over-year to $50 billion, which negatively impacted overall earnings.
How did Robinhood's customer metrics change in Q3 2026?
Robinhood saw growth in customer metrics, with funded customers reaching 28.7 million, total platform assets increasing by 19% to $396 billion, and Robinhood Gold subscribers growing by 34% to 5.2 million.
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