$HOOD · Robinhood Markets, Inc.
Robinhood reported Q3 2026 results via an 8-K/A (amended to revise non-GAAP tax-effect presentation). Total net revenues reached a record $1.424B (+12% YoY), but net income fell 14% YoY to $476M and GAAP diluted EPS dropped 16% to $0.51. Adjusted EPS was $0.60, down 3% YoY. Operating expenses rose 16% to $739M, with provision for credit losses surging 173% to $71M. 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, driven by event contracts revenue of $173M (up over 6x).
- Net income fell 14% YoY to $476M; diluted EPS dropped 16% to $0.51, including $67M in unrealized RVI losses.
- Adjusted EPS (non-GAAP) was $0.60, down 3% YoY — a new metric introduced this quarter.
- Provision for credit losses surged 173% YoY to $71M as the credit card loan book expands.
- 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 7.55% to $87.42 vs. the $94.56 regular close, signaling a sharp negative reaction to the earnings miss on the bottom line and the 173% spike in credit loss provisions. The $74.76B market cap reflects high expectations that Q3 results did not meet.
Record revenue paired with declining profitability and a 173% spike in credit provisions signals margin compression risk at a $75B market-cap company trading on growth momentum.
Robinhood's record $1.42B revenue and 28.7M funded customers reinforce its dominance among retail brokerages, but the 173% credit-loss provision surge mirrors growing pains seen at fintech lenders scaling credit products. The 55% crypto revenue decline contrasts with peers like Coinbase benefiting from the same macro environment.
Provision for credit losses jumped 173% YoY to $71M as Robinhood grows its credit card loan book — a rapidly scaling but untested-through-a-cycle risk. Crypto revenue fell 55% YoY to $120M, exposing sensitivity to crypto market downturns. The new "Adjusted Net Income" and "Adjusted EPS" non-GAAP metrics, introduced this quarter, add complexity to earnings comparability.