Robinhood Markets stock shifts growth toward prediction markets

Published on 11/07/2026 at 11:31 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Robinhood Markets stock is in focus as prediction markets become a major revenue driver. Crypto revenue fell sharply in the latest quarter.

Growth broadens, profitability softens

Robinhood reported record third-quarter revenue as net income and diluted earnings per share declined year over year.
Prediction-market revenue rose above 100 million US dollars in the quarter, while crypto revenue fell sharply.
Management lowered the top end of its 2026 adjusted operating-expense and share-based compensation outlook.

Robinhood Markets, US7707001027, Illustration mit AI erstellt.

Robinhood Markets is expanding its revenue mix as prediction markets gain weight, but the latest quarter also showed pressure on profitability. The company released its third-quarter results on October 27, covering the period ended September 30.

According to the Robinhood investor release, total net revenue reached a record 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. The company said net income included 67 million US dollars of unrealized losses, primarily linked to Robinhood Ventures Fund I.

Revenue growth meets a changing mix

Transaction-based revenue increased 19 percent to 867 million US dollars. Event-contract revenue rose more than sixfold to 173 million US dollars, while options revenue increased 31 percent to 399 million US dollars and equities revenue gained 41 percent to 121 million US dollars.

The mix also carried a clear counterweight. Cryptocurrency revenue dropped 55 percent to 120 million US dollars, and crypto notional trading volume declined 38 percent to 50 billion US dollars. Net interest revenue fell 9 percent to 415 million US dollars as securities-lending activity and short-term interest rates weighed on the line.

Prediction markets add opportunity and risk

A The Motley Fool analysis published by Yahoo Finance on November 6 highlighted the strategic importance of event contracts after the quarterly release. It noted that prediction-market revenue exceeded crypto revenue in the quarter, while also pointing to regulatory uncertainty around the rapidly expanding business.

Management also said adjusted operating expenses and share-based compensation for 2026 should range from 2.675 billion to 2.75 billion US dollars. The upper end was reduced by 25 million US dollars from the previous outlook, which the company attributed to efficiency gains.