Robinhood Markets stock faces profit pressure after record Q3 revenue
Published on 11/04/2026 at 15:08 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSRecord Revenue Meets Profit Pressure
- Robinhood reported record third-quarter revenue while net income and diluted earnings per share declined year over year.
- Options, equities and event-contract activity offset a sharp drop in cryptocurrency revenue.
- Management lowered the upper end of its 2026 adjusted expense outlook by 25 million US dollars.
Robinhood Markets reported record revenue for the quarter ended September 30, 2026, but lower profitability as cryptocurrency activity weakened. In its October 27 earnings release, the company said total net revenue rose 12 percent year over year to 1.42 billion US dollars.
Transaction-based revenue increased 19 percent to 867 million US dollars. Options revenue climbed 31 percent to 399 million US dollars, equities revenue rose 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 fell 55 percent to 120 million US dollars, while net interest revenue declined 9 percent to 415 million US dollars.
Growth Broadens Beyond Crypto
Robinhood said other revenue increased 61 percent to 142 million US dollars, helped by Trump Account service revenue and higher Robinhood Gold subscription revenue. Funded customers rose 7 percent to 28.7 million, Gold subscribers grew 34 percent to 5.2 million and total platform assets increased 19 percent to 396 billion US dollars.
Net income fell 14 percent to 476 million US dollars, while diluted earnings per share declined 16 percent to 0.51 US dollars. The result included 67 million US dollars of unrealized losses, primarily linked to the mark-to-market valuation of Robinhood Ventures Fund I. Adjusted net income decreased 3 percent to 550 million US dollars, and adjusted earnings per share fell 3 percent to 0.60 US dollars. Adjusted EBITDA rose 9 percent to 808 million US dollars.
Operating expenses increased 16 percent to 739 million US dollars. Robinhood cited higher credit-loss provisions as its credit-card loan book expands, along with spending on Trump Accounts, Rothera and marketing. Adjusted operating expenses and share-based compensation rose 8 percent to 664 million US dollars.
Lower Expense Ceiling Ahead
Management lowered the upper end of its 2026 adjusted operating expense and share-based compensation outlook by 25 million US dollars. The new range is 2.675 billion to 2.75 billion US dollars, compared with the previous ceiling of 2.775 billion US dollars. The measure excludes items including credit-loss provisions, pending-acquisition costs and potentially significant regulatory expenses.
Robinhood Markets stock traded at 74.51 euros on Lang & Schwarz at 15:03 CET on Wednesday, November 4, 2026. Investors will weigh the broader revenue base against weaker GAAP profitability, the crypto slowdown and continued investment in new businesses. The real-time quote of Robinhood Markets stock is available separately.
Robinhood Markets at a Glance
- Company: Robinhood Markets, Inc.
- ISIN: US7707001027
- Ticker: HOOD
- Home exchange: Nasdaq
- Lang & Schwarz quote: 74.51 euros, November 4, 2026, 15:03 CET
US financial stocks remain sensitive to interest-rate expectations, trading activity and regulation; current S&P 500 market reports provide the wider market context.
Further developments will center on customer growth, the expansion of prediction markets and other new products, credit losses and the delivery of the revised expense plan. More news and analyses on Robinhood Markets stock remain available.
