Robinhood's share price fell in after-hours trading following a mixed third-quarter earnings report in which transaction-based revenue disappointed Wall Street expectations, even as the company diversified its income sources away from traditional stock trading.
For the quarter ended September 30, Robinhood reported net income of $468 million, or 51 cents per share, compared with $556 million, or 61 cents per share, a year earlier. Overall revenue rose 12% to $1.27 billion. However, transaction-based revenue came in at $867 million, falling short of Wall Street estimates of $879 million according to StreetAccount.
The weakness in transaction revenue masks significant strength in specific business lines. Options revenue grew 31% year-on-year to $399 million, while equities revenue increased 41% to $121 million. Event contracts revenue, which allows investors to bet on cryptocurrency price movements, surged more than 500%. Chief Financial Officer Shiv Verma told CNBC that event contracts on crypto movements performed well during the quarter, providing customers with alternative ways to express views on digital assets despite declining prices in spot trading markets.
Cryptocurrency revenue, however, fell 55% to $120 million, reflecting the broader downturn in digital asset prices. This decline offset gains from other business segments. The company has been working to transform its brokerage app into a broader financial services platform, investing in wealth management, subscriptions and other offerings beyond transaction-based trading.
Net deposits on the Robinhood platform totaled $15.7 billion during the quarter, representing a 17% annualized growth rate based on total platform assets at the end of the previous quarter. Over the past year, net deposits reached $71 billion, reflecting 21% growth compared with total platform assets at the end of the third quarter of 2025.
For retail investors using Robinhood, the company's ability to sustain momentum across its trading businesses while reducing reliance on volatile market activity will determine whether trading costs and service quality remain competitive.