$HOOD · Robinhood Markets, Inc.
Robinhood filed its 10-Q for Q3 FY2026, reporting total net revenues of $1.424B (+12% YoY) but net income attributable to Robinhood of $468M, down 16% from $556M a year ago. Diluted EPS fell to $0.51 from $0.61. The revenue mix shifted dramatically: options revenue rose 31% to $399M and event contracts exploded 541% to $173M, while cryptocurrency transaction revenue plunged 55% to $120M. Operating expenses grew 16% to $739M, with provision for credit losses nearly tripling to $71M. Adjusted EBITDA rose 9% to $808M. Funded Customers reached 28.7M and Gold Subscribers hit 5.18M.
- Total net revenues rose 12% YoY to $1.424B, driven by options (+31%) and event contracts (+541%).
- Net income attributable to Robinhood fell 16% YoY to $468M; diluted EPS dropped to $0.51 from $0.61.
- Cryptocurrency transaction revenue collapsed 55% YoY to $120M from $268M.
- Total operating expenses surged 16% YoY to $739M, with provision for credit losses nearly tripling to $71M.
- Robinhood Gold Subscribers grew 34% YoY to 5.18M; Funded Customers reached 28.7M (+7% YoY).
Extended-hours trading shows HOOD down 7.58% to $87.39 vs the $94.56 regular close, signaling a sharp negative reaction to the earnings miss on the bottom line and crypto revenue collapse.
The 16% net income drop alongside a 55% crypto revenue collapse challenges the bull case that Robinhood has diversified beyond cyclical trading — even as event contracts and Gold subscriptions surge.
Robinhood's crypto revenue decline mirrors broader retail crypto trading fatigue, while its event-contracts business (+541% YoY) shows successful diversification into prediction markets. The TradePMR and WonderFi integrations are expanding the platform beyond self-directed retail.
Crypto revenue is highly volatile — down 55% YoY — and dependent on trading cycles outside Robinhood's control. Provision for credit losses nearly tripled to $71M, signaling deteriorating credit quality in the loan book. The Crypto.com agreement and Convertible Notes introduce new counterparty and dilution risks.