Robinhood Markets stock faces profit pressure after record Q3 revenue

Robinhood Markets reported record third-quarter revenue on October 27, 2026, but weaker profitability underscored the cost of expanding beyond its traditional brokerage business. In its official results release, the company said the quarter ended September 30 with total net revenue of 1.42 billion US dollars, up 12 percent from a year earlier.

Net income fell 14 percent to 476 million US dollars, while diluted earnings per share declined 16 percent to 0.51 US dollars. Adjusted net income, a non-GAAP measure that excludes certain items, decreased 3 percent to 550 million US dollars and adjusted earnings per share fell 3 percent to 0.60 US dollars. Robinhood said net income included 67 million US dollars of unrealized losses, primarily tied to the mark-to-market value of its Robinhood Ventures Fund I investment.

New products reshape revenue growth

Transaction-based revenue rose 19 percent to 867 million US dollars. Options revenue increased 31 percent to 399 million US dollars, equities revenue gained 41 percent to 121 million US dollars and event-contract revenue reached 173 million US dollars, more than six times the year-earlier level. Cryptocurrency revenue moved in the opposite direction, falling 55 percent to 120 million US dollars.

Net interest revenue also declined 9 percent to 415 million US dollars as lower securities-lending activity and short-term interest rates offset growth in interest-earning assets. Other revenue advanced 61 percent to 142 million US dollars, helped by Trump Account service revenue and higher Robinhood Gold subscription revenue. The mix shows why the platform's expansion can lift sales while also increasing exposure to trading cycles, interest rates and regulatory scrutiny.

Total operating expenses increased 16 percent to 739 million US dollars. Robinhood attributed the increase mainly to higher credit-loss provisions as its credit-card loan book grows, together with spending on Trump Accounts, Rothera, marketing and other growth initiatives. Adjusted EBITDA nevertheless rose 9 percent to a record 808 million US dollars.

Management points to fourth-quarter momentum

Robinhood said funded customers increased 7 percent year over year to 28.7 million, while total platform assets rose 19 percent to 396 billion US dollars. Net deposits reached 15.7 billion US dollars in the quarter. Chief Financial Officer Shiv Verma said October net deposits had already exceeded 13 billion US dollars month to date when the results were released, including 6 billion US dollars attributed to a Dell family contribution to Trump Accounts.

Management lowered the upper end of its 2026 outlook for adjusted operating expenses and share-based compensation by 25 million US dollars. The new range is 2.675 billion to 2.75 billion US dollars, compared with a previous ceiling of 2.775 billion US dollars. The outlook excludes several potentially volatile items, including credit-loss provisions and certain regulatory or acquisition-related costs.

The real-time quote of Robinhood Markets stock traded at 76.58 euros on Lang & Schwarz at 14:38 CET on Tuesday, November 3, 2026.

For investors, the key issue is whether newer products can keep offsetting weaker cryptocurrency activity and softer interest-related revenue without pushing operating costs higher. The next results will show whether deposit growth and broader product adoption are translating into more durable earnings power.

The broader US market context can be followed in current market reports.

More news and analyses are available on the Robinhood Markets stock topic page.

Robinhood Markets stock at a glance

• Company: Robinhood Markets, Inc.
• ISIN: US7707001027
• Ticker: HOOD
• Home exchange: Nasdaq
• Lang & Schwarz price: 76.58 euros at 14:38 CET on November 3, 2026