Robinhood shares fall 4.7% after hours despite Q3 profit beat

Robinhood Markets, Inc. (HOOD) said in a filing on Oct. 27 that third-quarter 2026 adjusted earnings were 60 cents per share, beating the 57-cent consensus estimate compiled by Finnhub. Revenue was $1.42 billion, below the $1.45 billion estimate, according to the earnings release furnished with the filing.

Shares fell 4.7% in after-hours trading as of 5:09 p.m. ET, from a regular-session close of $94.61.

Revenue rose 12% from a year earlier. Net income fell 14% to $476 million, and diluted earnings per share fell 16% to 51 cents. Net income included $67 million of unrealized losses tied mainly to Robinhood Ventures Fund I, or RVI.

Here's how the company did:

• Adjusted EPS: 60 cents vs. 62 cents a year earlier, against 57 cents expected, according to Finnhub
• Revenue: $1,424 million vs. $1,274 million a year earlier, against $1.45 billion expected, according to Finnhub
• Diluted EPS: 51 cents vs. 61 cents a year earlier
• Net income: $476 million vs. $556 million a year earlier

Robinhood offers retail brokerage, crypto, advisory, digital banking and private markets access, according to the company.

Revenue mix

Transaction-based revenue rose 19% to $867 million. Event contracts revenue of $173 million was up more than sixfold, options revenue of $399 million rose 31%, and equities revenue of $121 million rose 41%.

Cryptocurrencies revenue fell 55% to $120 million. Net interest revenue fell 9% to $415 million, mainly on lower securities lending activity and short-term interest rates, partly offset by growth in interest-earning assets.

Other revenue rose 61% to $142 million, primarily on Trump Account service revenues and higher Robinhood Gold subscription revenue.

Costs and charges

Total operating expenses rose 16% to $739 million. The company said the increase was driven mainly by higher provisions for credit losses as it grows its credit card loan book, expenses related to Trump Accounts and Rothera, and marketing and growth investments.

Adjusted Operating Expenses and SBC, a non-GAAP measure that excludes certain items, rose 8% to $664 million. Adjusted EBITDA, or earnings before interest, taxes, depreciation and amortization, excluding certain items, rose 9% to $808 million.

2026 expense outlook

The company lowered the top end of its 2026 Adjusted Operating Expenses and SBC outlook by $25 million, to a range of $2.675 billion to $2.775 billion from the earlier range, now $2.675 billion to $2.75 billion. It gave that prior range on July 29. The company said the change reflects ongoing efficiency gains across its business.

The outlook excludes provision for credit losses, costs related to pending acquisitions, and potential significant regulatory matters. The company did not give a 2026 outlook for total operating expenses.

Users and assets

Funded Customers rose 7% to 28.7 million, and Investment Accounts rose 9% to 30.4 million. Robinhood Gold Subscribers rose 34% to 5.2 million. Total Platform Assets rose 19% to $396 billion, and Net Deposits were $15.7 billion in the quarter.

“Customers are trusting us with more of their assets as we deliver on our product roadmap, leading to our highest quarter ever for revenues,” said Shiv Verma, Chief Financial Officer of Robinhood. The company also said it added a new business with over $100 million in annualized revenues this quarter as Rothera scaled rapidly.

The company repurchased $25 million of Class A common stock, or 0.2 million shares, at an average price of about $105 per share. Cumulative repurchases under its program since the third quarter of 2024 total $1.3 billion, the company said in the filing.