Robinhood Misses Q3 Earnings Estimates Despite Crypto Revenue Growth

Robinhood Q3 earnings — Robinhood Markets reported third-quarter earnings that fell short of analyst expectations, even as revenue from its crypto operations increased and its prediction markets business saw significant growth.

The trading platform posted record quarterly revenue of $1.42 billion, driven by a 15% year-over-year increase in total net revenue. However, its earnings per share of $0.51 missed the consensus estimate of $0.55. The company’s transaction-based revenues, which include crypto trading, rose 7% to $671 million.

Revenue specifically from cryptocurrency transactions grew to $146 million, up from $143 million in the previous quarter. The company’s newer prediction markets segment, where users can bet on sports and political events, generated $173 million in revenue for the period.

Robinhood CEO Vlad Tenev noted the company’s focus on expanding its product offerings, including crypto services, as a driver for user engagement. The earnings report highlights the growing diversification of the platform’s revenue streams beyond its core equities trading business.