Robinhood's Revenue Growth Cools After a Record Quarter

The Tip Desk · October 30, 2026 · 4 min read

Third-quarter net revenue reached a record $1.42 billion, up 12% from a year earlier, as diluted earnings fell to $0.51 a share.

Robinhood Markets (HOOD) posted a record $1.42 billion in third-quarter net revenue, a 12% year-over-year increase that marked a sharp slowdown from the 32% year-over-year rise to $1.31 billion in the second quarter.

The Menlo Park financial-services company said the sequential lift was 9% from the prior quarter. Diluted earnings were $0.51 a share, down 16% from a year earlier, after a 48% year-over-year increase to $0.62 in the second quarter. Net income was $476 million, down 14% year-over-year.

Net income included $67 million, or $0.07 of diluted EPS, of unrealized losses primarily related to the mark-to-market of Robinhood Ventures Fund I. The company introduced Adjusted Net Income and Adjusted EPS this quarter; Adjusted Net Income was $550 million and Adjusted EPS was $0.60, each down 3% year-over-year.

Transaction-based revenues rose 19% year-over-year to $867 million, after a 44% year-over-year increase to $776 million in the second quarter. Event contracts revenue was $173 million, up over 6x year-over-year, after $156 million, up over 10x, in the prior quarter. Options revenue was $399 million, up 31%. Equities revenue was $121 million, up 41%. Cryptocurrencies revenue was $120 million, down 55%.

Net interest revenues decreased 9% year-over-year to $415 million, reversing a 9% year-over-year increase to $389 million in the second quarter. The company said the decline was primarily driven by lower securities lending activity and short-term interest rates, partially offset by growth in interest-earning assets. Other revenues increased 61% year-over-year to $142 million, primarily driven by Trump Account service revenues and increased Robinhood Gold subscription revenues.

Total operating expenses increased 16% year-over-year to $739 million, after a 33% year-over-year increase to $734 million in the second quarter. The company said the year-over-year increase was primarily driven by higher provisions for credit losses as it grows the credit card loan book, expenses related to Trump Accounts and Rothera, and marketing and growth investments. Adjusted Operating Expenses and SBC increased 8% year-over-year to $664 million. Adjusted EBITDA increased 9% year-over-year to $808 million.

Funded Customers increased 7% year-over-year to 28.7 million. Total Platform Assets increased 19% year-over-year to $396 billion, after a 32% year-over-year increase to $369 billion in the second quarter. Net Deposits were $15.7 billion, an annualized growth rate of 17% relative to Total Platform Assets at the end of the second quarter, after $21.7 billion and a 28% annualized growth rate in the prior quarter. Robinhood Gold Subscribers increased 34% year-over-year to a record 5.2 million. Average Revenue Per User increased 5% year-over-year to $200.

Robinhood now has 14 business lines that have reached $100 million or more in annualized revenues, after 13 in the second quarter. Rothera reached over $100 million in annualized revenues in its first full quarter of operation, with over 6.4 billion contracts traded since launch. The company said market share gains drove active trader engagement to new highs, with record volumes for equities, options, and prediction markets, and record margin balances. Equity notional trading volumes increased 53% year-over-year to a record $992 billion. Options contracts traded increased 48% year-over-year to a record 905 million. Event contracts traded increased over 7x year-over-year to a record 16.4 billion. Crypto notional trading volumes decreased 38% year-over-year to $50 billion.

Cash and cash equivalents totaled $5.8 billion. Share repurchases were $25 million, representing 0.2 million Class A shares at an average price of approximately $105. Through the third quarter of 2026, cumulative repurchases under the program since the third quarter of 2024 totaled $1.3 billion.

The company lowered the top end of its 2026 Adjusted Operating Expenses and SBC outlook by $25 million to a range of $2.675 billion to $2.75 billion from $2.675 billion to $2.775 billion, citing ongoing efficiency gains. It is not providing a 2026 outlook for total operating expenses. Chief Financial Officer Shiv Verma said October Net Deposits had already topped $13 billion month-to-date, including $6 billion from the Dell family’s contribution to Trump Accounts.