Robinhood Sees Crypto Revenue Drop, Event Contracts Surge
On October 27, Robinhood Markets (NASDAQ: HOOD) released its third-quarter 2026 financial results, revealing a significant surge in event contracts revenue, which increased by more than six times, while cryptocurrency revenue declined by over half. The company’s total net revenues saw a 12% year-over-year increase, reaching $1.42 billion. Meanwhile, transaction-based revenues grew 19% to $867 million. However, net income decreased 14% to $476 million, and diluted earnings per share fell 16% to $0.51.
Record-Breaking Event Contracts
The number of contracts traded skyrocketed, exceeding 7 times the previous amount, to a record-breaking 16.4 billion. This resulted in $173 million in revenue, representing an increase of over 6 times. According to Chief Financial Officer Shiv Verma, the company has “added a new business cylinder” with over $100 million in annualized revenues, driven by the rapid scaling of Rothera. Since its launch, Rothera has facilitated the trading of over 6.4 billion contracts.
During the quarter, Robinhood achieved record volumes in equities, options, and prediction markets. In September, the company unveiled 17 new products and features at its HOOD Summit, including earnings contracts, perpetual futures for eligible U.S. customers, and 24/7 trading of select U.S. equities. This growth builds upon the company’s prediction markets hub, launched in March 2025, which enables users to trade on various outcomes, including political, economic, and sports events. Previously, Finance Magnates reported that the platform handled 8.5 billion event contracts in the final quarter of 2025, up from 2.3 billion in the prior period, and 8.8 billion contracts in the first quarter of 2026.
Cryptocurrency Revenue Declines
Rocketing downward, cryptocurrency revenue plummeted 55% year over year to $120 million. Notional trading volumes for cryptocurrencies also decreased, falling 38% to $50 billion. The Robinhood app saw a 48% decline in volumes to $21 billion, while Bitstamp volumes dropped 28% to $29 billion. In comparison, the prior-year quarter had stronger results, with Finance Magnates reporting $80 billion in notional crypto volume, split evenly between the Robinhood app and Bitstamp.
Despite the decline in cryptocurrency revenue, the company’s total platform assets rose 19% to $396 billion, driven by net deposits and higher equity valuations, partially offset by lower cryptocurrency valuations. Robinhood has continued to expand its cryptocurrency offerings outside the U.S., launching crypto trading in the UK and receiving authorization from the Dubai Financial Services Authority to trade and custody various asset classes, including cryptocurrencies, with plans for a regional rollout in 2027.
Robinhood Chain achieved a notable milestone in its first quarter on Mainnet, becoming a top-five chain by revenue and volume, according to the company. It generated over $80 billion in DEX volume and over $50 million in chain fees. Other key metrics from the quarter include a 34% increase in Gold subscribers to a record 5.2 million and 28.7 million funded customers. Additionally, approximately 200,000 customers have opened Agentic Trading Accounts, driving over $1.6 billion in notional trading volume.
