Key Highlights

  • Robinhood Markets (NASDAQ:HOOD) traded at USD 86.80, down 8.21%, in pre-market trading on Wednesday, October 28, 2026, a day after its Tuesday, October 27, 2026 release covering the quarter ended September 30, 2026.
  • Net revenues set a record of USD 1,424 million, up 12%, yet net income slid 14% to USD 476 million, and diluted earnings per share were USD 0.51 against USD 0.61 a year earlier.
  • Platform assets rose 19% to USD 396 billion, funded customers grew 7% to 28.7 million and cash reached USD 5,829 million, while the top of the 2026 adjusted operating expense outlook was trimmed.
  • This is a thin pre-market quote that can move before the 9:30 a.m. ET open, and the Federal Reserve decision also lands later on Wednesday, October 28, 2026.

The Reaction to a Mixed Quarter

Robinhood Markets (NASDAQ:HOOD) is a retail brokerage and financial services platform offering equities, options, crypto and retirement products. Its shares fell to USD 86.80, an 8.21% decline in the Wednesday, October 28, 2026 pre-market, after the company released quarterly results on Tuesday, October 27, 2026 with an earnings call at 5:00 p.m. ET. The record revenue headline was offset by lower profit and a dip in diluted earnings per share to USD 0.51 from USD 0.61.

Inside the Third-Quarter Numbers

Total operating expenses reached USD 739 million, up 16%. That outpaced the 12% revenue gain and pulled net income down to USD 476 million. Adjusted EBITDA, a non-GAAP measure of earnings before interest, tax, depreciation and amortisation after certain adjustments, grew 9% to USD 808 million, a 57% margin, while adjusted earnings per share came in at USD 0.60 against USD 0.62. Funded customers reached 28.7 million, platform assets were USD 396 billion and net deposits came to between USD 15.7 billion and USD 16 billion, as the release states both figures. Cash and equivalents of USD 5,829 million compare with USD 4,261 million at Wednesday, December 31, 2025. Costs rising faster than revenue is the factor most directly linked to the drop.

Bull Case, Bear Case and Watch List

Bulls point to record revenue, 5.2 million Robinhood Gold subscribers, up 34%, average revenue per user of USD 200, up 5%, and October net deposits above USD 13 billion, including USD 6 billion from the Dell family contribution to Trump Accounts. Bears point to lower net income and adjusted earnings per share, and to 16% expense growth. Named risks include regulatory matters excluded from the cost outlook, credit loss provisions and costs tied to a pending acquisition. The 2026 adjusted operating expense and share-based compensation outlook was narrowed to USD 2.675 billion to USD 2.75 billion, from USD 2.675 billion to USD 2.775 billion. Investors should watch the Federal Reserve decision due later on Wednesday, October 28, 2026 and the regular open at 9:30 a.m. ET.

Where Things Stand

Robinhood Markets (NASDAQ:HOOD) fell 8.21% before the open because quarterly profit declined even as revenue reached a record, and the reaction looks consistent with expenses growing 16%. The key comparison is net income of USD 476 million, down 14%, against revenue of USD 1,424 million, up 12%. Upcoming catalysts are the Federal Reserve decision later on Wednesday, October 28, 2026 and the regular open that day. Pre-market prices are snapshots and can change, and this is not investment advice.