HOOD stock: Robinhood misses Q3 profit forecast as crypto revenue drops
Robinhood made a record $1.42 billion in revenue, but earnings of $0.51 a share missed forecasts and crypto revenue fell 55% from a year ago.
Event: October 27, 2026
Primary source: October 27, 2026
Published here: October 27, 2026 at 08:57 PM UTC
Read: 2 min
What happened
On 27 October Robinhood reported Q3 2026 results. Revenue rose 12% to a record $1.42 billion. Net income fell 14% to $476 million, or $0.51 a share. Decrypt says analysts expected $0.55 and about $1.43 billion in revenue. The stock slipped after the close.
Why it matters to you
Robinhood depends less on crypto now. Crypto revenue fell 55% to $120 million. Prediction markets (event contracts) brought in $173 million, more than 6 times a year ago. Gold subscribers reached 5.2 million and platform assets $396 billion.
What to check and watch
Whether prediction markets keep growing, whether crypto volumes come back, and costs: the 2026 expense plan was narrowed to $2.675-2.75 billion. This is not advice to buy or sell.
What happened. Robinhood published Q3 2026 results on 27 October after the market closed. Revenue was $1.42 billion, a record and up 12% from a year ago. Transaction revenue rose 19% to $867 million. Net income was $476 million, down 14%. Diluted earnings per share were $0.51 (down 16%), adjusted $0.60 (down 3%).
Expectations. Decrypt says analysts expected $0.55 a share and about $1.43 billion in revenue. It notes the profit included a $67 million unrealized loss on Robinhood Ventures Fund I. The stock closed at about $94.61 and slipped after hours. It is down about 18% this year.
Crypto and prediction markets. Crypto revenue was $120 million, down 55% from a year earlier. Decrypt puts crypto trading volume at $50 billion, down 38%, with $29 billion of it on Bitstamp. Event contracts, bets on the outcome of sports, politics and the economy, made $173 million. That is more than 6 times a year ago. Customers traded a record 16.4 billion contracts.
Customers. Funded customers reached 28.7 million, up 7%. Paying Gold subscribers hit 5.2 million, up 34%. Platform assets were $396 billion, up 19%. Net deposits for the quarter were $15.7 billion.
Costs. The company narrowed its 2026 plan for adjusted operating expenses plus stock-based pay to $2.675-2.75 billion, cutting the top end by $25 million. It bought back $25 million of its own stock in the quarter.
Keep in mind. Quarterly results show the past, not the future. After-hours moves can change in the main session. This is not advice to buy or sell.
Confirmed facts
- Q3 2026 revenue was $1.42 billion, a record, up 12% year over year.[1][2]
- Net income was $476 million (down 14%), diluted EPS $0.51, adjusted EPS $0.60.[1][2]
- Analysts expected $0.55 a share and about $1.43 billion in revenue.[2]
- Crypto revenue was $120 million, down 55% year over year.[1][2]
- Event contracts made $173 million, more than 6 times a year ago; customers traded 16.4 billion contracts.[1][2]
- Gold subscribers 5.2 million (up 34%), platform assets $396 billion (up 19%), net deposits $15.7 billion.[1]
- The 2026 expense plan was narrowed to $2.675-2.75 billion.[1][2]
- Shares closed at about $94.61 and slipped after hours.[2]
Implications
- ConfirmedPrediction markets already earn Robinhood more than crypto.
- Our readingWeak crypto remains the main drag on the company's profit.
- Our readingFast growth in prediction markets may draw more attention from regulators.
Still unknown
- How the stock trades in the main session on 28 October.
- What management expects for Q4: the release gives no revenue forecast.
Who it affects
United States, Worldwide. People who follow HOOD stock, crypto exchanges and prediction markets
Sources
- Robinhood Markets (SEC filing): Robinhood Reports Third Quarter 2026 Results October 27, 2026 · official
- Decrypt: Robinhood Misses Q3 Earnings as Crypto Revenue Rises and Prediction Market Bets Grow October 27, 2026 · media
Cover: Freekonomist graphic, a symbolic image, not a photo of the event. This is a news explainer, not financial advice.
More stories
UPS stock jumps 5.8% as UPS raises its 2026 outlook
UPS reported Q3 revenue up 6.7% to $22.9 billion, raised its full-year outlook, and the stock rose 5.8%.
China AI stocks fall: the STAR50 index is down about 40%
China AI stocks have fallen sharply: Reuters says the STAR50 index is down about 40% from its summer high, wiping out about $480 billion of market value.
Boeing stock falls about 9% after Q3 results and slower 737 Max ramp
Boeing stock fell about 9% on 27 October as the company cut its third-quarter loss but said it will not significantly raise 737 Max output until the second half of 2027.
Morning brief by email
The night's key moves and what matters today, in 2 minutes. One-click unsubscribe.