Robinhood Q3 revenue misses forecasts as profit and subscriptions rise
Robinhood reported third-quarter results: adjusted earnings beat estimates and revenue came in slightly short, and shares fell after the bell.
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what happened
Shares of Robinhood Markets (HOOD) fell after hours on Tuesday, according to Stocktwits, after the brokerage came in below revenue expectations even though trading income reached a record. Adjusted earnings were $0.60 a share, ahead of the $0.56 FactSet consensus. Third-quarter revenue reached $1.42 billion against an expected $1.44 billion. Operating expenses rose 8% year over year to $664 million, well below the $776 million analysts had projected.
The company keeps reducing its reliance on crypto trading, where transaction volume dropped 38% in the quarter ending in September. Growth came from options and event-based prediction contracts on sports and global events. Chief Financial Officer Shiv Verma said Rothera, a Commodity Futures Trading Commission-licensed exchange built in a joint venture with Susquehanna International Group, has generated upwards of $100 million in annualized revenue.
Robinhood Gold added 1.3 million users in the quarter to reach 5.18 million subscribers, roughly 18% of funded accounts. October net deposits topped $13 billion, including $6 billion from the Dell family's contribution to Trump Accounts. The stock has lost about 19% so far this year.
why it matters
What matters for markets is the gap between strong customer growth and revenue below forecasts. Crypto's share of income is shrinking, so the broker's results depend less on the crypto cycle, while prediction markets and AI tools draw more investor attention.
market impact
HOOD shares: revenue below expectations weighs on the stock, strong deposits support interest
- Robinhood shares (HOOD) pressure down — revenue below consensus triggered a drop after hours
tags
instruments
sources
- HOOD Stock Drops 5% After-Hours: Robinhood’s Q3 Revenue Climbs On Prediction Markets, But Misses Wall Street Targets — Stocktwits, 27 October 2026 at 22:42 UTC
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