Robinhood Shares Drop 8% After Earnings Miss Due to Crypto Slump

Robinhood shares slipped roughly 8% in pre-market action on Wednesday following a third-quarter earnings report that missed Wall Street expectations, weighted down by a sharp drop in cryptocurrency trading.

For the quarter ended Sept. 30, net income fell to $468 million, or 51 cents per share, down from $556 million, or 61 cents per share, in the same period last year. Total revenue rose 12% compared to $1.27 billion recorded a year ago.

Despite that overall top-line expansion, transaction-based revenue came in at $867 million. That figure missed the $879 million forecast by analysts surveyed by StreetAccount, raising fresh questions on Wall Street about whether the online brokerage can maintain growth while navigating volatile retail trading volumes.

Surging Options and Event Contracts Offset Crypto Decline

Overall transaction-based revenue managed a 19% year-over-year increase to hit $867 million, underpinned by rapid expansion in newer trading products. Revenue generated from event contracts skyrocketed by more than 500%, while options trading revenue climbed 31% to $399 million. Equities trading revenue also posted strong gains, rising 41% to $121 million.

However, those advances were clipped by a steep contraction in digital asset activity. Cryptocurrency revenue plummeted 55% year-over-year to $120 million as spot trading volumes dragged.

Addressing the digital asset slowdown, Chief Financial Officer Shiv Verma told CNBC that specialized event contracts tied to cryptocurrency movements performed well during the quarter. Verma noted that these contracts gave traders an alternative vehicle to take market positions despite falling token prices and subdued spot market trading.

Diversification Efforts and Platform Asset Growth

The earnings report comes as Robinhood continues pushing to transform its flagship trading app into a full wealth management and financial services hub. Alongside prediction markets and derivatives, the broker has increased investments in subscription tiers, wealth management tools, and ancillary financial products.

Capital inflows onto the platform remained sturdy throughout the period. Net deposits hit $15.7 billion for the quarter, reflecting a 17% annualized growth rate relative to total platform assets recorded at the end of Q2 2026.

Looking at the broader trajectory, net deposits over the trailing 12 months reached $71 billion. That influx marks a 21% growth rate when measured against the total platform assets reported at the close of Q3 2025.