MENLO PARK, California / CryptoWire.AI / – Shares of Robinhood fell about 8% in pre-market trading on Wednesday after the company reported weaker-than-expected third-quarter profit. A sharp drop in cryptocurrency revenue offset strong growth in options trading and prediction markets. The brokerage posted earnings of 51 cents per share for the quarter ended September 30. Analysts surveyed by LSEG had expected 56 cents. The miss came despite revenue meeting expectations.
Revenue rose 12% to $1.42 billion from $1.27 billion a year earlier, in line with Wall Street forecasts. Robinhood said it was its highest-revenue quarter on record. Net income attributable to the company fell to $468 million from $556 million in the same period of 2025. Total net income, including non-controlling interests, came to $476 million, down 14%. Diluted earnings per share fell 16% from 61 cents. The company published its results on October 27.
Cryptocurrency revenue dropped 55% to $120 million as trading activity cooled. Crypto notional trading volume fell 38% to $50 billion. The decline came as digital asset markets slid, with crypto prices remaining volatile into October. Transaction-based revenue rose 19% to $867 million but missed the StreetAccount estimate of $879 million. The weakness put the focus on how far Robinhood can sustain momentum across its trading businesses.
Event contracts and options drive growth
Event contracts were the standout. Revenue from the business, which lets customers trade on the outcome of events, rose more than sixfold to $173 million. The number of contracts traded jumped more than sevenfold to a record 16.4 billion. Chief Financial Officer Shiv Verma told CNBC that event contracts linked to crypto price moves performed well. They gave investors another way to take a view on crypto despite weaker spot trading.
Options revenue grew 31% to $399 million, while equities revenue climbed 41% to $121 million. Net interest revenue fell 9% to $415 million. Other revenue rose 61% to $142 million. Robinhood has been expanding beyond its trading app into a broader financial services platform. It continues to invest in wealth management, subscriptions and other products to reduce its reliance on volatile market activity. The company also offers retirement accounts and a credit card.
Customer assets climb to $396 billion
Net deposits reached $15.7 billion in the quarter, an annualised growth rate of 17% based on platform assets at the end of the second quarter. Over the past 12 months, net deposits totalled $71 billion, representing 21% growth. Total platform assets rose 19% to $396 billion. Funded customers increased 7% to 28.7 million. Subscribers to the Robinhood Gold service grew 34% to 5.2 million. The deposit figures point to continued customer inflows despite weaker crypto markets.
Verma said customers are trusting Robinhood with a growing share of their assets. He added that net deposits in October had already exceeded $13 billion month-to-date. The figure suggests customer inflows remained strong after the quarter ended. The U.S. Securities and Exchange Commission closed an earlier investigation into its crypto unit in 2025. Investors will now watch whether growth in event contracts and options can make up for weaker crypto trading in the coming quarters.