$HOOD · Robinhood Markets, Inc.
Robinhood reported Q3 2026 results with record total net revenues of $1.424B (+12% YoY), driven by a 19% surge in transaction-based revenues to $867M. Net income fell 14% YoY to $476M, with diluted EPS of $0.51 down 16%. Adjusted EBITDA rose 9% to $808M, and the company lowered the top end of its 2026 Adjusted Operating Expenses and SBC outlook by $25M to $2.675–$2.75B.
- Total net revenues hit a record $1.424B, up 12% YoY.
- Transaction-based revenues surged 19% YoY to $867M, led by event contracts at $173M (up 6x).
- Net income fell 14% YoY to $476M; diluted EPS dropped 16% to $0.51.
- Adjusted EBITDA rose 9% YoY to $808M; Adjusted EPS of $0.60 was down 3% YoY.
- October Net Deposits already topped $13B month-to-date, including $6B from the Dell family's Trump Accounts contribution.
Extended-hours trading shows HOOD down 3.33% to $91.41 vs. the $94.56 regular close, despite record revenue. The $74.76B market cap stock is reacting to the 14% net income decline, a 173% surge in provision for credit losses to $71M, and a $67M unrealized loss from the Robinhood Ventures Fund I mark-to-market.
Record revenue paired with declining net income and a 3.3% after-hours selloff highlights the tension between Robinhood's aggressive expansion into credit, prediction markets, and crypto derivatives versus the rising costs and credit risk that come with it.
Robinhood's event contracts revenue of $173M (up 6x YoY) and Rothera's $100M+ annualized run-rate signal a broadening beyond traditional brokerage into prediction markets and derivatives — a path no other U.S. retail broker is pursuing at this scale.
Provision for credit losses jumped 173% YoY to $71M as the credit card loan book expands. Crypto revenue fell 55% YoY to $120M, exposing sensitivity to crypto market cycles. The $67M unrealized loss from RVI mark-to-market introduces volatility to GAAP earnings.