Traders work at posts on the New York Stock Exchange floor, with electronic market displays in the background; illustrative file photo, not Robinhood employees or the Oct. 27 earnings event.
Midas

Summary

  • Robinhood reported record Q3 net revenue of $1.42 billion, up 12% year over year, but net income fell 14% to $476 million and GAAP diluted EPS fell 16% to $0.51.
  • Reuters reported the 51-cent GAAP EPS missed its 55-cent LSEG analyst estimate; Robinhood separately introduced a new non-GAAP adjusted EPS measure of $0.60, down 3% year over year.
  • Transaction revenue grew 19% on stronger options and event contracts, while cryptocurrency revenue fell 55% to $120 million; shares were down 4.2% in after-hours trading, according to Reuters.
  • Robinhood lowered the top of its 2026 adjusted operating expenses and share-based compensation outlook by $25 million, to a $2.675 billion–$2.75 billion range.

Record sales, lower reported profit

Robinhood Markets reported third-quarter net revenue of $1.42 billion, a record and 12% above the same quarter a year earlier. But profit declined: net income fell 14% to $476 million, and diluted earnings per share under U.S. generally accepted accounting principles (GAAP) dropped 16% to 51 cents. The results, for the quarter ended Sept. 30, were released after the market close on Tuesday, Oct. 27. [1] [3]

Reuters said the 51-cent profit per share was below the 55-cent analyst estimate it cited from LSEG. That comparison refers to the reported GAAP figure. Robinhood also introduced adjusted net income and adjusted EPS as new non-GAAP measures this quarter: adjusted EPS was 60 cents, down 3% year over year. The company says these measures exclude certain items, including unrealized and realized investment gains or losses. They are not interchangeable with the 51-cent GAAP result, and their introduction makes comparisons with prior quarters less direct. [1] [2]

Trading growth offset a sharp crypto decline

Transaction-based revenue rose 19% to $867 million, supported by options revenue of $399 million, up 31%, and event-contract revenue of $173 million, more than six times the year-earlier level. Equities revenue increased 41% to $121 million. Cryptocurrency revenue moved the other way, falling 55% to $120 million; Robinhood’s crypto notional trading volume dropped 38% to $50 billion. Net interest revenue also declined 9% to $415 million, which the company attributed mainly to lower securities-lending activity and short-term rates. [1] [2]

The customer and asset measures were stronger: funded customers rose 7% to 28.7 million, platform assets increased 19% to $396 billion, and Gold subscribers climbed 34% to 5.2 million. The company said $67 million in unrealized losses, primarily tied to the mark-to-market value of Robinhood Ventures Fund I, reduced net income by about 7 cents per diluted share. These figures show growth in activity and assets alongside weaker crypto-related revenue and lower GAAP profit. [1]

Expense outlook and stock reaction

Robinhood lowered the upper end of its 2026 outlook for adjusted operating expenses and share-based compensation by $25 million, to a range of $2.675 billion to $2.75 billion. The company said the change reflects efficiency gains. This is a non-GAAP expense measure, and Robinhood cautioned that the outlook excludes items such as credit-loss provisions and significant regulatory expenses; it is not a forecast for total GAAP operating expenses. [1]

Reuters reported that HOOD shares fell 4.2% in after-hours trading following the release. That is an initial, off-session market move, not the next regular-session close. Reuters attributed investor focus to the profit miss, softer crypto activity and higher expenses; the price move itself does not establish how the stock will trade afterward. The company’s filed earnings materials and Reuters report together show why the headline is mixed: record revenue and strong non-crypto trading growth, but lower GAAP earnings and a pronounced crypto slowdown. [2]

Reporting sources

  1. Robinhood Investor Relations · Robinhood Reports Third Quarter 2026 Results ↗October 27, 2026
  2. Reuters · Robinhood misses quarterly profit estimates as softer crypto activity outweighs robust trading ↗October 27, 2026
  3. U.S. Securities and Exchange Commission · Robinhood Markets, Inc. Form 8-K, filed October 27, 2026 ↗October 27, 2026

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