Robinhood's third-quarter crypto revenue falls 55% to $120 million

Robinhood's crypto revenue for July through September was $120 million, down 55% from a year earlier. The U.S. online brokerage reported its third-quarter results on Oct. 27 (local time) and filed them with the U.S. Securities and Exchange Commission in a current report on Form 8-K. Total net revenue reached a quarterly record of $1.42 billion, and the company said transaction-based revenues rose 19% on gains in event contracts, options and equities, partially offset by a decline in cryptocurrency revenue.

Up $20 million from the previous quarter

The quarter-on-quarter picture was different. In its second-quarter release on July 29, Robinhood reported crypto revenue of $100 million. Third-quarter crypto revenue was 20% higher at $120 million.

All of the increase came from a new revenue source. According to an analysis of the earnings materials by crypto news outlet The Block, $26 million of third-quarter crypto revenue came from Robinhood Chain, while crypto transaction revenue excluding the chain fell 6% from the prior quarter to $94 million.

Trading activity followed a similar pattern. Crypto notional trading volume was $50 billion, down 38% from a year earlier. Of that, Robinhood App notional volume fell 48% to $21 billion, and volume on Bitstamp, the European exchange Robinhood acquired in 2025, fell 28% to $29 billion. In the second quarter, the app handled $18 billion and Bitstamp $22 billion, for a total of $40 billion. Since June, app volume has included trades by customers of WonderFi, Robinhood's Canadian subsidiary.

Lower crypto prices also showed up in customer assets. Total Platform Assets rose 19% year over year to $396 billion, which the company said was driven by net deposits and higher equity valuations, partially offset by lower cryptocurrency valuations.

The customer base grew. Funded Customers rose by 1.9 million year over year to 28.7 million, and subscribers to Robinhood Gold, its monthly subscription service, rose 34% to 5.2 million. The company added that net deposits had already topped $13 billion month-to-date in October.

Prediction markets and options filled the gap

Other businesses picked up the slack. Revenue from event contracts, which let users trade on the outcomes of events such as sports games and economic data (prediction markets), rose more than sixfold from a year earlier to $173 million, exceeding crypto revenue ($120 million) for a second straight quarter. Options revenue rose 31% to $399 million, and equities revenue rose 41% to $121 million. Transaction-based revenues as a whole rose 19% to $867 million.

Net income fell 14% to $476 million, and diluted earnings per share were $0.51. The company said net income included $67 million of unrealized losses, primarily related to its venture fund. According to The Block, Robinhood shares fell 5.5% to $89.22 in after-hours trading following the release.

$80 billion through its own chain in three months

The third quarter was the first quarter on mainnet for Robinhood Chain, the blockchain Robinhood built. The company said the chain generated over $80 billion in decentralized exchange (DEX) volume and over $50 million of chain fees during the period, making it a top-five chain by revenue and volume.

Robinhood also expanded abroad. It launched crypto trading in the UK during the quarter and received authorization from the Dubai Financial Services Authority (DFSA) covering trading and custody across ten asset classes, including equities, crypto, ETFs and investment tokens. It plans to begin rolling out its product suite in Dubai in 2027. At a September event, it announced 17 new products and features, including perpetual futures for eligible U.S. customers.

Robinhood currently offers about 200 stock tokens on Robinhood Chain. According to Cointelegraph, the tokens are backed by underlying shares but are structured as tokenized debt securities without shareholder rights such as voting, making them ineligible for the SEC's innovation exemption, which requires rights equivalent to those of shareholders. On the same day, Ripple announced that its U.S. dollar stablecoin RLUSD had gone live on Robinhood Chain and Bitstamp and is expected to come to the Robinhood app later this year.

Speaking on the earnings call about the SEC's innovation exemption for tokenized stock venues, CEO Vlad Tenev called it "a really positive step," but said the uncertainty of what happens in five years "is likely to be an impediment" to putting serious assets onto the technology, Cointelegraph reported. The exemption expires five years after it is published.