Robinhood customers traded a record 16.4 billion event contracts in the third quarter, more than seven times the year-earlier count and up from 13.6 billion in the second quarter, the brokerage reported after the market closed on Tuesday, Oct. 27.
Rothera, the prediction-market exchange that Robinhood’s joint venture with Susquehanna International Group launched in June, reached more than $100 million in annualized revenue in the third quarter, its first full quarter of operation. That made it the company’s 14th business line at that level. More than 6.4 billion contracts have traded on Rothera since launch.
Crypto revenue rose 20% to $120 million from $100 million in the second quarter but was down 55% from a year earlier.
Total net revenue climbed 12% year over year to a record $1.42 billion, up from $1.31 billion in the second quarter and matching the $1.42 billion Zacks had projected. Diluted earnings per share fell 16% to $0.51, below the Zacks estimate of $0.55 and down from $0.62 in the prior quarter. The figure included $67 million, or 7 cents a share, of unrealized losses, mostly from marking Robinhood Ventures Fund I to market. Under a new non-GAAP measure, adjusted EPS came to $0.60.
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Event Contracts Again Outpace Crypto
Event contract revenue grew more than sixfold from a year ago to $173 million, again ahead of crypto, and rose 11% from $156 million in the second quarter, when it also beat both crypto and equities.
The day before the report, Bernstein analysts projected that prediction markets could generate $1.7 billion for Robinhood in 2028, ahead of $1.6 billion from crypto, up from roughly $650 million this year.
Crypto Volumes and Deposits
Crypto notional trading volume dropped 38% year over year to $50 billion, with Bitstamp handling $29 billion of it. Robinhood said lower crypto prices partly offset growth in total platform assets, which rose 19% from a year earlier to $396 billion.
In its first quarter on mainnet, Robinhood Chain handled more than $80 billion in DEX volume and generated over $50 million in fees, after memecoin activity pushed its fees past Solana and BNB Chain by early September. At its September HOOD Summit, the company also announced perpetual futures for eligible U.S. customers.
Net deposits slowed to $15.7 billion from $21.7 billion in the second quarter. Chief Financial Officer Shiv Verma said in the release that October net deposits “have already topped $13 billion month-to-date, including $6 billion from the Dell family’s contribution to Trump Accounts.”
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