Robinhood Misses Q3 Earnings as Crypto Revenue Rises and Prediction Market Bets Grow

Key Points:

• Robinhood reported third-quarter revenue of $1.42 billion, slightly missing Wall Street expectations of $1.43 billion, with earnings per share at $0.51, below the projected $0.55 and down from $0.61 a year ago.
• Net income fell 14% year-over-year to $476 million, impacted by a $67 million unrealized loss on Robinhood Ventures Fund I, while adjusted earnings per share decreased 3% to $0.60.
• Event contracts revenue rose to $173 million, surpassing crypto revenue for the second consecutive quarter, with customers trading a record 16.4 billion contracts, indicating strong growth in Robinhood’s prediction market offerings.
• Crypto trading revenue increased to $120 million from $100 million in the previous quarter but remained 55% lower than the same period last year, with total crypto trading volume declining 38% year-over-year to $50 billion.
• Robinhood launched its layer-2 blockchain network, Robinhood Chain, which outperformed Ethereum and Base in fees during its first two months, and announced a partnership with Ripple to integrate the RLUSD stablecoin and treasury software into its ecosystem.