Robinhood's crypto revenue fell 55%. Prediction markets now earn it more
Robinhood posted record revenue of $1.42 billion in Q3 2026, but crypto revenue sank to $120 million. Bets on events brought in $173 million, and its new blockchain says it collected more than $50 million in fees in its first quarter.
Key points
- Robinhood had record Q3 2026 revenue of $1.42 billion, up 12%, but net income fell 14% to $476 million.
- Crypto revenue dropped 55% to $120 million, while event contracts (prediction markets) earned $173 million, more than six times a year earlier.
- Robinhood Chain, live since July 1, made more than $50 million in fees and handled more than $80 billion in DEX volume, the company says.
Record revenue, falling profit
Robinhood made $1.42 billion in revenue in the third quarter of 2026, up 12% from a year earlier and the most in its history, while its crypto revenue fell by more than half. The results came out on October 27, 2026, according to its earnings release filed with the SEC. Chief financial officer Shiv Verma described the result as "our highest quarter ever for revenues."
Profit did not follow. Net income fell 14% to $476 million and diluted earnings per share fell 16% to $0.51. Adjusted earnings per share were $0.60, down 3%.
Crypto was the weak spot. Crypto revenue dropped 55% to $120 million as trading cooled across the market. For the quarter, Robinhood's prediction market business earned more than its crypto business.
Where the money came from
Options trading was the largest transaction line at $399 million, up 31%. Equities revenue rose 41% to $121 million. Net interest revenue, earned on customer cash and margin loans, fell 9% to $415 million, which Robinhood linked mainly to lower securities lending and lower short-term rates.
The fastest growth came from event contracts, Robinhood's name for trades on the outcome of events such as sports games. That line brought in $173 million, more than six times the figure a year earlier. Customers traded a record 16.4 billion contracts, more than seven times as many as a year before. Robinhood said Rothera, its joint-venture exchange with Susquehanna, passed $100 million in annualized revenue in its first full quarter.
Robinhood now has 28.7 million funded customers, up 7%, and $396 billion in total platform assets, up 19%. Paid Gold subscribers reached a record 5.2 million, up 34%.
Robinhood Q3 2026 revenue by line
US$ million
Source: Robinhood Q3 2026 earnings release (SEC Form 8-K, Exhibit 99.1)
Crypto: less trading, a new chain
Total crypto notional volume, the dollar value of all trades, fell 38% from a year earlier to $50 billion. Volume in the Robinhood app fell 48% to $21 billion. Bitstamp, the exchange Robinhood bought in 2025, handled $29 billion, down 28%.
The new element is Robinhood Chain. It is a dedicated blockchain built with Arbitrum technology, and its mainnet went live on July 1, 2026, according to Arbitrum's announcement. Arbitrum said the chain offers block confirmations in about 100 milliseconds.
In its first quarter on mainnet, Robinhood says the chain became a top-five chain by revenue and volume, with more than $50 million in chain fees and more than $80 billion in volume on decentralized exchanges. That ranking is Robinhood's own claim. The release does not say how much of the chain's fees counted as crypto revenue for Robinhood.
The chain lets Robinhood earn from crypto even when its own app customers trade less, because anyone using the network pays fees.
Costs and buybacks
Robinhood narrowed its 2026 outlook for adjusted operating expenses and share-based compensation to $2.675 billion to $2.75 billion, trimming $25 million from the top of the range. It bought back $25 million of stock in the quarter, about 0.2 million shares at roughly $105 each. Since Q3 2024 it has repurchased $1.3 billion of shares, about 27 million shares at an average of roughly $48, the release says.
Verma also said net deposits in October had already passed $13 billion by the time of the release.
Coinbase saw the same slump
Robinhood's crypto slump matches what happened at its largest US rival. Coinbase said in its quarterly 10-Q filing that consumer crypto spot trading volume fell 59% from a year earlier in Q3 and institutional spot volume fell 53%. Robinhood's own app volume fell 48% over the same period.
Both companies are leaning on the same new product to fill the gap. Coinbase said the drop in consumer transaction revenue was offset in part by the launch of prediction markets and growth in derivatives trading. Its consumer transaction revenue still fell 47%. At Robinhood, event contracts are now larger than crypto: $173 million against $120 million in Q3.
Robinhood also keeps growing its customer base while trading cools. Funded customers and platform assets both rose, and so did Gold subscriptions. Those numbers feed net interest and subscription revenue, which depend less on how often customers trade.
Timeline
Robinhood Chain mainnet goes live
Q3 ends
Robinhood releases Q3 results
LC Insight analysis
This section is our reading of the facts above, not a statement of fact.
- We think the chain is the most interesting number here. Robinhood now earns from crypto even when its own customers trade less, by charging everyone who uses its network.
- Robinhood looks less like a crypto broker and more like a mix of brokerage, prediction market and infrastructure. Crypto now earns less than options, interest and event contracts.
- Prediction markets are the new growth engine at both Robinhood and Coinbase, but they come with legal risk. States and federal regulators are still fighting over how to treat them.
What's next
- Whether Robinhood Chain fees keep growing in Q4
- How much of the chain's fees Robinhood reports as revenue
- Bitstamp volumes as crypto trading stays weak
- State and federal treatment of event contracts
Disclaimer. This article is based on public information and the sources listed below as of the update time shown. It is for information only and is not investment, legal or tax advice. Figures may change as companies and authorities publish new data.
