Robinhood Crypto Revenue Plunges 55% in Q3 Despite Record $1.42B Overall Revenue
Key Takeaways
- Robinhood’s crypto revenue plunged 55% year-over-year to $120 million in Q3 2026, while crypto trading volume fell 38% to $50 billion, despite record overall revenue of $1.42 billion.
- Robinhood expanded its crypto ambitions, reporting significant trading activity on Robinhood Chain, launching international crypto services, partnering with Ripple on RLUSD, and adding $25 million in bitcoin to its corporate holdings.
- Prediction markets emerged as a major growth driver, generating $173 million in quarterly revenue, more than six times the year-earlier figure, helping offset weakness in cryptocurrency trading.
Record Overall Revenue, But Not for Crypto
Robinhood Markets (Nasdaq: HOOD) reported a 55% year-over-year decline in cryptocurrency transaction revenue to $120 million during the third quarter of 2026, highlighting continued weakness in its crypto trading business despite broader growth across the financial services platform.
According to its Oct. 27 earnings report, cryptocurrency trading volumes fell 38% year-over-year to $50 billion, including $21 billion through the Robinhood app and $29 billion through Bitstamp, the cryptocurrency exchange acquired by Robinhood in June 2025. Those figures represented respective declines of 48% and 28%.
The downturn contrasted with the company’s overall financial performance. Total revenue climbed 12% year-over-year to a record $1.42 billion, while transaction-based revenue increased 19% to $867 million. Net income declined 14% to $476 million, with diluted earnings per share falling 16% to $0.51.
Options trading generated $399 million in revenue, up 31%, while equities revenue increased 41% to $121 million. Prediction markets continued their rapid expansion, generating $173 million in event contracts revenue, more than six times the year-earlier figure.
The crypto decline followed similar weakness in the second quarter, when Robinhood reported $100 million in cryptocurrency revenue, down 38% year-over-year, as previously reported by Bitcoin.com News. Despite the annual decline, third-quarter crypto revenue represented a 20% sequential improvement.
Robinhood’s Crypto Moves Add Up
Meanwhile, Robinhood’s blockchain ambitions continued to advance. The company reported that Robinhood Chain, its Ethereum Layer 2 network built using Arbitrum technology, generated more than $80 billion in decentralized exchange trading volume and over $50 million in network fees during its first quarter operating on mainnet.
Bitcoin.com News reported earlier this month that Robinhood Chain had surpassed $100 billion in cumulative trading volume within roughly three and a half months of its July 1 launch, briefly outpacing the Coinbase-backed Base network in 30-day decentralized exchange activity.
The network, designed to support tokenized stocks and other financial assets, has become a central component of Robinhood’s broader push into blockchain-based financial services. However, network trading volume and fees do not directly translate into an equivalent amount of revenue recognized by Robinhood.
The company also expanded its international cryptocurrency operations during the quarter, launching crypto trading in the United Kingdom and securing authorization from the Dubai Financial Services Authority to offer trading and custody services. Robinhood expects to begin rolling out products in Dubai in 2027.
Separately, Robinhood announced a partnership with Ripple on Tuesday that will bring the RLUSD stablecoin to its retail trading app later this year. The agreement also covers institutional settlement using the XRP Ledger, integration of Ripple’s treasury management technology, and expanded trading services through Bitstamp.
Robinhood has also increased its direct exposure to digital assets. Earlier this month, the company’s crypto chief, Johann Kerbrat, confirmed a $25 million bitcoin allocation to its corporate holdings, describing the investment as a diversification measure.
Beyond crypto, prediction markets have emerged as an increasingly important growth driver. Robinhood said that the Rothera derivatives exchange—which Robinhood jointly invested in alongside Susquehanna International Group—exceeded $100 million in annualized revenue during its first full quarter, processing more than 6.4 billion contracts since launch. The company also recently expanded its prediction markets partnerships, taking minority stakes in Crypto.com and its prediction markets spinoff, OG.com.
Robinhood ended the third quarter with 28.7 million funded customers, up 7% year-over-year, while total platform assets climbed 19% to $396 billion. Robinhood Gold subscriptions reached a record 5.2 million.
The results underscore a growing divergence within Robinhood’s business: while cryptocurrency trading remains substantially below last year’s levels, the company’s investments in blockchain infrastructure, tokenization, institutional crypto services, and prediction markets are expanding its presence across digital finance.
HOOD shares fell more than 5% in after-hours trading soon after the earnings report announcement, trading near $89.50 after finishing the closing day at $94.56.
