The short version
- Robinhood crypto revenue fell 55% to $120 million in Q3, leaving crypto fourth among its trading lines, $1 million behind equities, while prediction markets made $173 million.
- It matters because Bitcoin rose 43% in the quarter yet Robinhood app crypto volume fell 48% from a year ago to $21 billion, and HOOD stock dropped about 7% after hours on an EPS miss.
- The crew is watching Coinbase results after the US close on Thursday, October 29, after Galaxy swung to a $323 million profit mostly on gains in its own holdings.
Robinhood crypto revenue fell to $120 million in the third quarter, down 55% from $268 million a year ago. Prediction markets brought in $173 million. Crypto is now Robinhood’s fourth-biggest trading line, $1 million behind plain old stocks.
The market didn’t like the rest of the report either. Earnings per share came in at $0.51 against $0.55 expected, and HOOD stock slid about 7% after hours to near $87.70. Galaxy Digital earnings, out the same morning, told a very different story.
Robinhood posted the results here:
Robinhood Markets has just released financial results for the third quarter of 2026.
What Did Robinhood Report for Q3?
Record revenue and a lower profit. Total revenue rose 12% to $1.42 billion, but net income fell 14% to $476 million, and $67 million of losses on its venture fund took $0.07 off EPS.
Options did the heavy lifting with $399 million. This is how the trading lines stack up now:
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Why Did Robinhood Crypto Revenue Drop?
Fewer people traded crypto in the app. Robinhood app crypto volume was $21 billion, down 48% from a year ago, and Bitstamp did $29 billion, down 28%.
Against Q2 it looks better. Robinhood crypto revenue rose 20% from $100 million, and app volume climbed from $18 billion. Still, Bitcoin gained 43% in the quarter and app volume rose only about a sixth. Crypto revenue worked out to about 0.57% of app volume, close to the 0.56% of the first half.
That lands close to our Robinhood earnings preview from last week, which worked out about $115 million against a $135.6 million Zacks consensus.
Prediction Markets Pull Ahead
Event contracts are now Robinhood’s second-biggest trading line, behind only options. Customers traded a record 16.4 billion contracts, more than seven times last year.
Revenue grew slower than volume, though. Robinhood earned about 1.05 cents per contract, down from 1.15 cents in Q2. Rothera, the exchange it runs with Susquehanna, passed $100 million in annualized revenue in its first full quarter.
More is coming. Robinhood is already pushing House and Senate markets ahead of the November 3 midterms. Robinhood Chain, its own network, did over $80 billion in DEX volume and over $50 million in fees in its first quarter on mainnet.
SIDE TRAIL: Robinhood Chain Passed $100B in DEX Volume. Now Perps Out-Trade Spot as Memecoins Fade
Galaxy Earns $323 Million, Mostly From Its Own Bets
Galaxy swung to a $323 million profit from an $85 million loss in Q2. Most of it came from the treasury and corporate unit, where gains on its own crypto and investment holdings made $419 million of adjusted gross profit.
The client business was flat. Digital assets made $71 million of adjusted gross profit but lost $9 million in adjusted EBITDA. Data centers did better, with $69 million of EBITDA from the Helios campus leased to CoreWeave.
GLXY closed up 9.6% at $17.18, and the board added another $200 million share buyback.
What It Means for Coinbase on Thursday
Coinbase reports after the US close on October 29, and Robinhood just showed how weak retail crypto trading still is. Bitcoin trades near $80,900 at the time of writing, with resistance at $81,479.
TRAIL MAP: Coinbase Earnings Preview: A $600M Bitcoin Paper Gain Could Hide Weak Trading
Robinhood customers still trade, just not much crypto. Coinbase earns far more of its money from crypto trading than Robinhood does, so Thursday is the cleaner test of whether retail traders are coming back.
In crypto since 2016. Covers altcoins and the daily market. When not trading, out climbing and traveling.
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