Robinhood crypto revenue falls 55% as record $1.42B revenue masks trading slump

What happened

Robinhood Markets reported $120 million in cryptocurrency transaction revenue for the third quarter of 2026, a 55% decline from the same period a year earlier, according to the company's Oct. 27 earnings release. The drop came even as the brokerage posted record total revenue of $1.42 billion, up 12% year over year, with growth in options, equities and prediction markets offsetting the weakness in digital assets.

Crypto notional volume across the platform totaled about $50 billion, down 38% year over year. The Robinhood app accounted for roughly $21 billion of that, a 48% decline, while Bitstamp, the exchange Robinhood acquired in June 2025, contributed about $29 billion, down 28%. On a sequential basis, crypto revenue improved 20% from the $100 million booked in the second quarter.

Other trading lines expanded. Options generated $399 million in revenue, up 31%, and equities brought in $121 million, up 41%. Event contracts produced $173 million, more than six times the prior-year figure, as customers traded a record 16.4 billion of them. Net income fell 14% to $476 million and diluted earnings per share slipped 16% to $0.51, a result that included $67 million in unrealized losses tied primarily to Robinhood Ventures Fund I. HOOD shares dropped more than 5% in after-hours trading to near $89.50, after closing at $94.56, as reported by Bitcoin.com News and CryptoSlate.

Why it matters

The quarter highlights how far crypto trading has fallen as a driver of Robinhood's results relative to newer products. Prediction-market revenue exceeded crypto revenue for the second consecutive quarter, a reversal from the period when digital-asset trading was one of the company's fastest-growing lines. That shift carries its own risk: Robinhood disclosed in its quarterly risk factors that it had previously halted certain new event contracts after actual or threatened state enforcement, and warned that litigation or changes in law could limit its ability to offer the products.

The regulatory backdrop intensified the same day the results were released. The Commodity Futures Trading Commission sued Utah in an effort to block state enforcement against CFTC-registered contract markets, and said it had opened proceedings against nine other states, per CryptoSlate. For a business now contributing more revenue than crypto trading, access to those markets is central to the growth outlook.

What the data shows

Robinhood ended the quarter with 28.7 million funded customers, up 7% year over year, and total platform assets of $396 billion, up 19%. Gold subscriptions reached a record 5.2 million. Transaction-based revenue rose 19% to $867 million. The Rothera derivatives exchange, a joint investment with Susquehanna International Group, surpassed $100 million in annualized revenue in its first full quarter and has processed more than 6.4 billion contracts since launch. Robinhood also took minority stakes in Crypto.com and its prediction-markets spinoff OG.com.

Background

Crypto weakness has now persisted across two quarters. Robinhood reported $100 million in crypto revenue for the second quarter, down 38% year over year, as Bitcoin.com News previously reported. While trading revenue contracted, the company kept expanding its blockchain and digital-asset footprint. Robinhood Chain, its Ethereum Layer 2 built with Arbitrum technology, generated more than $80 billion in decentralized exchange volume and over $50 million in network fees in its first quarter on mainnet after launching July 1; Bitcoin.com News reported earlier that cumulative volume topped $100 billion within roughly three and a half months. The company noted that chain volume and fees do not translate directly into recognized revenue.

Internationally, Robinhood launched crypto trading in the United Kingdom and obtained authorization from the Dubai Financial Services Authority covering trading and custody, with product rollouts in Dubai expected to begin in 2027. It also announced a partnership with Ripple to bring the RLUSD stablecoin to its retail app later this year, alongside institutional settlement on the XRP Ledger, treasury management technology and expanded services through Bitstamp. Earlier in the month, crypto chief Johann Kerbrat confirmed a $25 million bitcoin allocation to corporate holdings, described as a diversification step.

What is still unclear

It is not clear from the reported figures whether retail customers shifted activity from crypto into event contracts, or whether the two trends are unrelated. CryptoSlate noted that companywide revenue lines show how Robinhood earns money across products but do not establish customer-level substitution. How much of the crypto decline reflects market conditions versus platform-specific factors also remains unaddressed in the disclosures.

What to watch

The state-by-state litigation over prediction markets is the most immediate variable, given event contracts now outearn crypto. Investors will also watch whether crypto revenue continues to recover sequentially from its second-quarter trough, the timing of the RLUSD integration, and the 2027 Dubai rollout. Robinhood Chain activity, which the company described as ranking among the top five chains by revenue and volume, will be tracked separately from brokerage trading revenue.

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