Robinhood Markets, Inc.
HOOD · NASDAQ-GS
Next quarter
Expected to report Feb 9, 2027 — estimated from last year’s reporting date.
Consensus is $0.60 EPS for Dec 2026 across 8 estimates, ranging $0.51 to $0.72.
HOOD Sep 2026
- 7.14%
- -3.31%
- $0.56
- $0.60
- —
- $1.42B
Reported results
- $1.42B
- $468.00M
- $0.51
Highlights
- Record revenue, mixed earnings: Q3 net revenue rose 12% year over year and 9% sequentially to $1.424 billion. Diluted GAAP EPS was $0.51, down 16% year over year; adjusted EPS was $0.60, 7.1% above the supplied $0.56 consensus.
- Trading drove growth: Transaction revenue increased 19% year over year to $867 million, led by event contracts at $173 million (more than 6x), options at $399 million (+31%) and equities at $121 million (+41%). Cryptocurrency revenue fell 55% to $120 million.
- Deposits and assets scaled: Net deposits were $15.7 billion, a 17% annualized growth rate; trailing 12-month deposits reached $71.0 billion, or 21% growth. Total Platform Assets rose 19% year over year to $396 billion.
- Profitability was below last year: Consolidated net income fell 14% year over year to $476 million, while adjusted net income was $550 million, down 3%. Adjusted EBITDA increased 9% to $808 million, with a 57% margin.
- Customer engagement broadened: Funded Customers increased 7% year over year to 28.7 million, Investment Accounts grew 9% to 30.4 million, and Gold subscribers rose 34% to a record 5.2 million. ARPU increased 5% to $200.
- New lines gained scale: Rothera passed $100 million in annualized revenue in its first full quarter. Robinhood now has 14 business lines at that annualized revenue threshold; Robinhood Chain reported more than $80 billion of first-quarter DEX volume.
- Expense outlook edged lower: GAAP operating expenses rose 16% year over year to $739 million; adjusted operating expenses and SBC increased 8% to $664 million. Robinhood lowered the top of its 2026 adjusted expense range by $25 million, to $2.75 billion.
Analysis
Robinhood posted a record $1.424 billion of Q3 revenue, up 12% year over year and 9% from Q2, as higher trading activity and newer businesses more than offset weaker crypto and interest revenue. The supplied consensus was $0.56 EPS; adjusted EPS of $0.60 beat it by 7.1%. GAAP diluted EPS was $0.51, however, down from $0.61 a year ago and $0.62 last quarter. Consolidated net income declined 14% year over year to $476 million and 17% sequentially; adjusted net income was $550 million, down 3% year over year but above Q2’s $454 million.
The print was defined by record trading in equities, options and event contracts, strong asset inflows, and broadening revenue sources. Transaction revenue climbed 19% to $867 million, while net interest revenue fell 9% to $415 million, including weaker securities lending. Net deposits of $15.7 billion helped lift platform assets to $396 billion, up 19% year over year. Rothera crossed $100 million in annualized revenue in its first full operating quarter, contributing to 14 business lines at that scale. Adjusted EBITDA rose 9% to $808 million, but operating expenses grew faster than revenue; management cited credit-loss provisions and investment in Trump Accounts and Rothera, while trimming the top end of its 2026 adjusted expense outlook.
Trading mix
- Transaction revenue: Revenue grew 19% year over year to $867 million and 12% sequentially. Event-contract revenue reached $173 million, more than 6x the prior-year level; options revenue rose 31% to $399 million and equities revenue rose 41% to $121 million.
- Volume records: Equity notional volume increased 53% year over year to a record $992 billion, options contracts traded rose 48% to a record 905 million, and event contracts traded grew more than 7x to a record 16.4 billion.
- Crypto and interest headwinds: Crypto notional volume declined 38% to $50 billion, with Robinhood app volume down 48% to $21 billion and Bitstamp down 28% to $29 billion. Crypto revenue fell 55% to $120 million. Net interest revenue decreased 9% to $415 million, as lower securities-lending activity and short-term rates outweighed growth in interest-earning assets.
Deposits and customers
- Asset gathering: Q3 net deposits were $15.7 billion, equivalent to 17% annualized growth relative to Q2-end platform assets. Trailing 12-month net deposits totaled $71.0 billion, a 21% growth rate. Total Platform Assets increased 19% year over year to $396 billion, supported by deposits and higher equity valuations, partly offset by lower crypto valuations.
- Customer growth: Funded Customers rose 7% year over year to 28.7 million and Investment Accounts increased 9% to 30.4 million. Gold subscribers reached a record 5.2 million, up 34%, with 18% overall customer adoption and roughly 40% adoption among new customers. ARPU was $200, up 5%.
- October momentum: Management said October net deposits had topped $13 billion month to date, including $6 billion from the Dell family’s contribution to Trump Accounts. This lifted year-to-date deposits above $68 billion and past the company’s 20% annual growth goal, though the October figure includes that large contribution.
New revenue engines
- Rothera and prediction markets: Rothera exceeded $100 million in annualized revenue in its first full quarter, with more than 6.4 billion contracts traded since launch. Robinhood cited record event-contract activity and said non-sports contracts represented about 30% of prediction-market activity, up from 15% in Q2.
- Robinhood Chain: In its first quarter on mainnet, the chain ranked among the top five by revenue and volume, with more than $80 billion of DEX volume and more than $50 million of chain fees in the release. On the call, management described about $50 million of gross quarterly revenue and roughly $25 million after sharing fees with Arbitrum, while emphasizing investment in developers and adoption over near-term monetization.
- Broader financial ecosystem: Trump Accounts reached automatic enrollment for nearly 70 million children; the Dell pledge funded $250 for 25 million children. The Gold Card had 1.3 million customers and more than $19 billion in Q3 annualized payment volume. Banking reported nearly $5 billion in deposits from over 350,000 funded customers, and Robinhood Strategies had 350,000 funded customers and over $2 billion in assets under management.
Earnings and expenses
- GAAP and adjusted results: Consolidated net income was $476 million, down 14% year over year and 17% sequentially; $468 million was attributable to Robinhood. Diluted GAAP EPS of $0.51 included $67 million, or $0.07 per share, of unrealized losses primarily tied to Robinhood Ventures Fund I. The newly introduced adjusted EPS was $0.60, down 3% year over year and up from $0.50 in Q2.
- Operating leverage: Adjusted EBITDA rose 9% year over year to $808 million, with a 57% margin. GAAP operating expenses increased 16% to $739 million, faster than revenue; adjusted operating expenses and SBC rose 8% to $664 million. Credit-loss provision increased to $71 million from $26 million a year ago as the credit-card loan book expanded, alongside costs for Trump Accounts, Rothera and growth investments.
- Balance sheet and capital return: Cash and cash equivalents were $5.8 billion, versus $4.3 billion at Q3 2025-end. Q3 repurchases totaled $25 million, or 0.2 million shares at an average price of about $105; cumulative repurchases since Q3 2024 were $1.3 billion for 27 million shares.
Expense outlook
Robinhood 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; the midpoint is $13 million below the prior range. Management attributed the change to continuing efficiency gains, while still expecting growth investment in Q4, particularly for Trump Accounts and credit cards. The company estimated its full-year Trump Accounts investment at about $100 million. The outlook excludes, among other items, credit-loss provisions, pending-acquisition costs and potentially significant regulatory expenses, so it is not a forecast of total GAAP operating expenses.
