Robinhood Stock Drops 7% After Hours: Record Revenue, a Crypto Slump and a Prediction-Market Boom

Robinhood Markets reported record third-quarter revenue on Tuesday, October 27, 2026 — and its stock still fell about 7% after hours. Net revenue rose 12% year over year to a record $1.42 billion, just below the $1.44 billion analysts expected, as a 55% plunge in crypto revenue collided with a more than sixfold surge in prediction-market revenue to $173 million.

What happened, in short

Robinhood (HOOD) closed the regular session at $94.56, then slid in extended trading — down 7.2% to $87.74 in one after-hours tally, with other reports putting the early drop at about 5%. The split verdict from investors was simple: the headline business is bigger than ever, but the mix underneath it changed fast, and profit missed the mark on a reported basis.

On an adjusted basis, Robinhood earned $0.60 a share, comfortably ahead of the $0.56 FactSet consensus. On a reported GAAP basis, earnings were $0.51 a share, below the $0.56 estimate cited by LSEG. Net income attributable to Robinhood fell 16% to $468 million, a figure that included $67 million in unrealized losses on Robinhood Ventures Fund I. Operating expenses were held to $664 million, up 8% year over year and well below the $776 million analysts had projected.

Why it's blowing up

The number everyone is sharing is the crypto drop. Crypto revenue fell 55% year over year to $120 million, a reminder of how quickly that business cools when spot trading fades from last year's bull-market highs. TradingView's summary of the release added useful context: crypto trading volume actually rose 23% from the previous quarter to $49.8 billion, and Robinhood Chain — its layer-2 blockchain launched on July 1 — brought in $26 million in its first quarter on mainnet. The year-over-year comparison is brutal; the sequential picture is less so.

What replaced crypto, at least this quarter, was everything else. Transaction-based revenue grew 19% to $867 million, just under the $879 million StreetAccount estimate. Options revenue rose 31% to $399 million and equities revenue rose 41% to $121 million. Event contracts — prediction markets — generated $173 million, up more than six times from a year earlier, including revenue from Rothera, the derivatives exchange Robinhood built jointly with Susquehanna International Group.

Key facts

• Revenue: $1.42 billion, up 12% year over year and a company record, versus about $1.44 billion expected.
• Earnings: $0.60 a share adjusted, beating the $0.56 FactSet consensus; $0.51 a share on a GAAP basis, missing the $0.56 LSEG estimate.
• Crypto: Revenue down 55% to $120 million year over year.
• Prediction markets: Event-contract revenue up more than sixfold to $173 million.
• Customers: 28.7 million funded customers, up 7%, with total platform assets up 19% to $396 billion.
• Gold: Subscriptions hit a record 5.18 million, up 1.3 million.
• Deposits: CFO Shiv Verma said October net deposits had already topped $13 billion month to date, including $6 billion from the Dell family's contribution to Trump Accounts.

Elsewhere in the release, net interest revenue fell 9% to $415 million while other revenue rose 61% to $142 million. Robinhood also trimmed the top end of its 2026 expense outlook by $25 million, now expecting adjusted operating expenses of $2.675 billion to $2.75 billion.

What's next

The after-hours drop says investors are pricing the miss, not the record. The question heading into the fourth quarter is whether prediction markets and options can keep growing fast enough to cover a crypto business that is no longer carrying the quarter — and whether deposit momentum like October's $13 billion holds once one-off contributions are stripped out. Robinhood enters that test with record customers, record Gold membership and a broader set of revenue lines than it had a year ago, but also with a stock that was already down roughly 22% for the year before Tuesday's slide deepened it.

Sources: Morningstar / Dow Jones Newswires, Stocktwits, Crypto Briefing (reporting CNBC figures), TipRanks

FAQ

Why did Robinhood stock fall after earnings?

Shares fell about 5% to 7% after hours because reported earnings of $0.51 a share missed the $0.56 estimate and revenue of $1.42 billion came in just below the $1.44 billion expected, despite both being records in absolute terms.

How much did Robinhood's crypto revenue fall?

Crypto revenue fell 55% year over year to $120 million in the third quarter, even though crypto trading volume rose 23% from the previous quarter to $49.8 billion.

What is driving Robinhood's growth now?

Options, equities and prediction markets. Options revenue rose 31% to $399 million, equities rose 41% to $121 million, and event contracts surged more than sixfold to $173 million.

How many customers does Robinhood have?

Robinhood ended the quarter with 28.7 million funded customers, up 7% year over year, $396 billion in platform assets, and a record 5.18 million Gold subscribers.