Robinhood Misses Q3 Earnings Despite Crypto and Prediction Market — SkimNews
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- Robinhood reported $1.42 billion in Q3 revenue, slightly below the $1.43 billion expected, with earnings of $0.51 per share versus $0.55 projected.
- Robinhood generated $173 million in event contracts revenue, up from $156 million in Q2, as customers traded a record 16.4 billion prediction market contracts.
- Robinhood saw crypto revenue rise to $120 million from $100 million in Q2, though it remained 55% below the year-ago level of $268 million.
- Robinhood launched Robinhood Chain on July 1 as a layer-2 Ethereum network, which earned $3.13 million in fees over its first 30 days, outpacing Ethereum and Base.
- Robinhood announced a partnership with Ripple to bring RLUSD, a $2.5 billion-valued stablecoin, to Robinhood Chain and Bitstamp, with in-app rollout planned later this year.
- Robinhood trimmed its 2026 adjusted operating expense and stock-based pay guidance to $2.675 billion–$2.75 billion, down from a prior top-end of $2.775 billion.
Why it matters: Despite growth in prediction markets and crypto revenue, Robinhood’s miss on earnings and 14% year-over-year drop in net income signal that rising transaction volumes aren’t yet translating into bottom-line gains, raising investor concerns about profitability amid expanding product lines and infrastructure investments.
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