Robinhood just had its biggest revenue quarter ever. Shareholders still got a smaller slice of profit per share.
The brokerage reported Q3 2026 total net revenue of $1.42 billion, up 12% year-over-year. Diluted earnings per share, however, came in at $0.51, below analyst estimates of roughly $0.54 to $0.57. Record sales and an earnings miss in the same release is an unusual combination. Most of the explanation traces back to crypto.
What carried the quarter, and what didn’t
Robinhood (NASDAQ: HOOD) released the results on October 27. Transaction-based revenue reached $867 million, a 19% increase from the prior year.
The standout was event contracts, essentially bets on outcomes like elections or sporting results. That line brought in $173 million, more than six times its level a year earlier.
Options revenue climbed 31% to $399 million, which keeps it the largest single transaction line. Equities revenue rose 41% to $121 million.
Crypto told another story. Cryptocurrency revenue fell 55% to $120 million. Notional crypto trading volume across the platform, including Bitstamp, dropped 38% year-over-year to $50 billion.
For context, equities revenue now slightly exceeds crypto revenue. For a company whose brand became closely linked with retail crypto trading, that is a notable reversal.
Why profit per share went backwards
The EPS figure of $0.51 is down 16% from $0.61 in Q3 2025. Revenue went up, but earnings per share went down. Two factors stand out in the results.
The first is the crypto slump. Crypto trading has historically been a high-margin business for brokerages, so losing more than half of that revenue stings more than the headline number suggests. The second is $67 million in unrealized investment losses tied to Robinhood Ventures Fund I.
Unrealized means the losses exist on paper. They reflect a markdown in value rather than a completed sale. They still count against reported earnings, though.
Net income landed between $468 million and $476 million.
The growth metrics look solid
Outside the income statement, the customer and asset numbers moved in the right direction. Funded customers reached 28.7 million. Total platform assets rose 19% to $396 billion.
Robinhood Gold, the paid subscription tier, grew 34% to a record 5.2 million subscribers. Net deposits for the quarter totaled $16 billion.
The company also leaned into its diversification pitch. Robinhood said it now runs 14 separate business lines, each generating more than $100 million in annual revenue.
What this means for investors and the crypto market
For HOOD shareholders, the takeaway is mixed. Revenue diversification is clearly working at the top line, with event contracts, options and equities all posting double-digit or better growth. The EPS miss shows that diversification has not yet fully insulated earnings from crypto weakness or investment markdowns.
The crypto figures carry weight beyond Robinhood. A 55% revenue drop and a 38% decline in notional volume point to softer retail participation in digital asset trading on one of the largest consumer platforms.
Event contracts deserve close attention. Growth of more than six times in a year is the kind of curve that attracts both competitors and regulators.
The venture losses are another item to monitor. Robinhood Ventures Fund I produced $67 million in unrealized losses this quarter.
Finally, the customer metrics give Robinhood room to work with. A record 5.2 million Gold subscribers, $396 billion in platform assets and $16 billion in quarterly net deposits suggest users are bringing more money and paying for premium features.
Disclosure: This article was edited by Vivian Nguyen. For more information on how we create and review content, see our Editorial Policy.