Key Highlights

  • Record net revenues were $1.42 billion, up 12% from $1.274 billion and up 9% from the second quarter.
  • Diluted EPS was $0.51 versus $0.61 a year earlier; new adjusted EPS was $0.60, down 3%.
  • Event contracts generated $173 million of revenue, up more than six times, while cryptocurrency revenue fell 55% to $120 million.
  • Net deposits were $15.7 billion, and total platform assets reached $396 billion, up 19%.
  • The top end of the 2026 adjusted operating expenses and stock-based compensation outlook was cut $25 million to $2.75 billion.

Robinhood Earnings: Did Record Revenue Outweigh Weaker Profit?

Robinhood Markets (NASDAQ:HOOD) reported third-quarter results on Tuesday, October 27, with record net revenues of $1.42 billion, up 12% year over year and 9% from $1.31 billion in the second quarter. Net income was $476 million, down 14%, and diluted EPS was $0.51 compared with $0.61. As screened, EPS was 8.07% below a $0.55 estimate.

The company introduced two non-GAAP measures this quarter: adjusted net income of $550 million, down 3%, and adjusted EPS of $0.60, down 3%. Reported EPS includes about $0.07 of unrealized losses, mainly from marking its Robinhood Ventures Fund I to market. Adjusted EBITDA was $808 million, up 9%, at a 57% margin.

Revenue Mix: How Large Is the Shift From Crypto to Event Contracts?

Transaction revenue rose 19% to $867 million. Event contracts contributed $173 million on 16.4 billion contracts traded, options $399 million (up 31%) and equities $121 million (up 41%). Cryptocurrency revenue fell 55% to $120 million, with notional volume down 38% to $50 billion.

Net interest revenue fell 9% to $415 million on lower securities lending and short-term rates, partly offset by larger interest-earning assets. Other revenue rose 61% to $142 million, driven by Trump Account service revenue and Gold subscriptions.

Rothera, the joint venture with Susquehanna, exceeded $100 million of annualized revenue in its first full quarter.

Customers, Deposits and Expenses: What Is Driving Costs Up 16%?

Funded customers rose 7% to 28.7 million, and Gold subscribers rose 34% to a record 5.2 million. Net deposits were $15.7 billion, a 17% annualized growth rate, and trailing 12-month net deposits were $71.0 billion. Margin book hit a record $22.1 billion, up 59%.

Total operating expenses rose 16% to $739 million, driven by credit loss provisions, Trump Accounts and Rothera costs, and marketing. The provision for credit losses was $71 million, up 173%, as the credit card book grew. Net margin was 33%, against 44% in the second quarter.

Adjusted operating expenses and stock-based compensation were $664 million, up 8%. Management cut the top end of its 2026 outlook for that measure by $25 million to a range of $2.675 billion to $2.75 billion, citing efficiency gains. The outlook excludes credit provisions, pending acquisition costs and CFO transition equity costs.

Balance Sheet and Buybacks: How Much Capital Is Available?

Cash and equivalents were $5.8 billion, up from $4.3 billion a year earlier, and long-term borrowings were $2.66 billion.

The company repurchased about 0.2 million Class A shares for $25 million in the quarter at roughly $105 a share. Cumulative buybacks since the third quarter of 2024 total $1.3 billion, or about 27 million shares at a $48 average.

What to Watch Next: Will October's $13 Billion of Deposits Carry Into the Fourth Quarter?

Management said it entered the fourth quarter with strong momentum, with October net deposits already above $13 billion, including $6 billion tied to Trump Accounts. Investors will watch event contract growth, crypto revenue stabilisation, credit provisions and the pending acquisitions.