Robinhood (HOOD) Crypto Revenue Slides 55% to $120M in Q3 2026

Crypto Slips to 8.4% of Revenue

Crypto transaction revenue at Robinhood (HOOD) fell 55% from a year earlier to $120 million in the third quarter, according to the company's earnings release filed after Tuesday's close. The line item still beat the roughly $114 million analysts projected and rose 20% from $100 million in the second quarter, but it now represents just 8.4% of Robinhood's total revenue, down from about 21% a year ago. Total revenue set a record at $1.42 billion, up 12% year over year, yet diluted earnings per share came to $0.51 against a $0.55 consensus, and the stock dropped roughly 5% in after-hours trading.

Bitstamp Carries the Larger Share

Total crypto trading volume came in at $50 billion for the quarter, down 38% year over year as customers traded less across the platform. The Robinhood app accounted for $21 billion, a 48% decline, while Bitstamp, the exchange the company acquired in June 2025, handled $29 billion, down 28%. Retail activity through the app fell faster than activity on the institutional venue, leaving the acquired exchange responsible for well over half of reported crypto volume. Management attributed part of the drop to lower crypto prices, which offset growth in total platform assets even as the volume line shrank.

Event Contracts Hit a Record 16.4 Billion

Revenue from event contracts, the yes-or-no bets on elections, sports and economic data popularized by platforms such as Polymarket, reached $173 million, more than six times its year-earlier level and up from $156 million in the second quarter. Customers traded a record 16.4 billion contracts, over seven times the count from a year earlier. Rothera, the prediction-market exchange Robinhood runs with Susquehanna International Group under Commodity Futures Trading Commission (CFTC) oversight, crossed $100 million in annualized revenue in its first full quarter, making it the company's 14th business line at that level; more than 6.4 billion contracts have traded on Rothera since its June launch.

The $67 Million Paper Loss

The earnings miss traces to a $67 million unrealized loss on Robinhood Ventures Fund I, a vehicle holding stakes in private companies that is revalued each quarter, which erased about $0.07 per share. Adjusted earnings per share, which exclude such items, came to $0.60, down 3% from a year earlier. Operating expenses climbed 16% to $739 million, and net income fell 14% to $476 million from $556 million. The revenue mix shifted toward options, up 31% to $399 million, and equities, up 41% to $121 million, while Bernstein had projected quarterly revenue near $1.5 billion against the $1.42 billion delivered.

Robinhood Chain and the RLUSD Deal

The blockchain business expanded on several fronts during the quarter. Robinhood Chain, a layer-2 network built on Arbitrum technology that went live on July 1, processed more than $80 billion in decentralized exchange volume and generated over $50 million in chain fees in its first mainnet quarter; those fees reflect network activity and are distinct from recognized blockchain revenue and profit. The network is designed to carry tokenized stocks and other assets built with smart contracts. Hours before the release, Robinhood announced a partnership with Ripple to bring the RLUSD stablecoin, which carries a market cap above $2.5 billion, to Robinhood Chain and Bitstamp later this year. The company also launched crypto trading in the UK, secured Dubai financial-services authorization for a 2027 product rollout, and added $25 million in Bitcoin to its corporate treasury, a diversification move crypto head Johann Kerbrat confirmed earlier in October.

October Deposits Top $13 Billion

Customer activity stayed strong outside trading. Net deposits reached $15.7 billion in the quarter, down from $21.7 billion in the second, and October net deposits have already topped $13 billion month-to-date, including $6 billion from the Dell family's contribution to Trump Accounts. “We're entering Q4 with strong momentum,” CFO Shiv Verma said in the release. Paying Robinhood Gold subscribers rose 34% to a record 5.2 million, funded customers grew 7% to 28.7 million, and total platform assets climbed 19% to $396 billion. Robinhood trimmed the top of its 2026 expense guidance to a range of $2.675 billion to $2.75 billion, from the $2.775 billion ceiling set in July.

HOOD Below the Strongest Support

HOOD last changed hands at $88.22, down 5.43% over 24 hours, with the after-hours decline from the earnings print carrying into the next session. COINOTAG's composite scoring rates the $89.68 support at 94 out of 100, but spot already sits below that level, so it now acts as the first hurdle overhead; the $100.94 resistance carries the strongest score in the pack at 96/100. Daily RSI reads 30.0, near oversold, and the trend indicator is bearish. Perpetual funding runs at 0.0055% while open interest stands near $15.8 million, so positioning remains light. A daily close back above $89.68 would soften the downtrend reading; continued weakness points toward the $81.94 support.