robin hood The stock fell 4% in after-hours trading as investors digested lower-than-expected third-quarter profits despite growth in options and prediction markets.
Here’s how the brokerage firm performed for the quarter ended September 30 compared to Wall Street expectations, based on a survey of analysts by LSEG.
Earnings per share: 51 cents vs. 56 cents expected Earnings: $1.42 billion vs. $1.42 billion expected
Robinhood’s net income fell to $468 million, or 51 cents per share, from $556 million, or 61 cents per share, a year ago. Revenue increased 12% from $1.27 billion in the year-ago period.
Despite this gain, trade-based revenue of $867 million was lower than the $879 million that Wall Street expected from StreetAccount, and the focus is on whether Robinhood can maintain momentum across its trading business and reduce its reliance on volatile market activity.
Robinhood is diversifying its business by expanding its brokerage app into a broader range of financial services platforms. While options trading and event contracts remain important sources of trading revenue, the company continues to invest in wealth management, subscriptions, and other services.
Transaction-based revenue increased 19% year-over-year to $867 million, primarily driven by more than 500% growth in event contract revenue. Additionally, option income increased 31% to $399 million, and equity income increased 41% to $121 million.
These gains were partially offset by crypto revenue, which fell 55% to $120 million.
Chief Financial Officer Shiv Verma told CNBC that event contracts on crypto movements were strong during the quarter, providing investors with a new way to express their views on cryptocurrencies despite weakness in prices and spot trading.
Net deposits on the Robinhood platform during the quarter totaled $15.7 billion, representing 17% annualized growth based on total platform assets at the end of the second quarter of 2026. Net deposits over the past year totaled $71 billion, representing a 21% increase compared to total platform assets at the end of Q3 2025.
—Report from CNBC’s Robert Hamm and Kate Rooney
