Robinhood Markets reported third-quarter revenue of $1.42 billion, up 12% year over year and a quarterly record, yet still below Wall Street's expectation of roughly $1.43–$1.44 billion. Shares closed regular trading at $94.56, up 1.85%, before retreating sharply in after-hours trading.

Coinpaper reported the drop at approximately 7%, and Crypto Briefing cited Yahoo Finance data showing the stock at roughly $88.20 after hours, a decline of about 7%. The company also introduced a new non-GAAP measure, reporting adjusted earnings of $0.60 per share, down 3% year over year.

The surprise lies in the mix. Cryptocurrency transaction revenue plunged 55% year over year to $120 million, with total notional crypto trading volume down 38% to $50 billion — $21 billion through the app and $29 billion through Bitstamp, according to Crypto Briefing.

Meanwhile, prediction markets became the standout: event contracts generated $173 million in revenue, more than six times the year-ago figure, and outperformed crypto transaction revenue for the second consecutive quarter.

Options revenue climbed 31% to $399 million and equities revenue surged 41% to $121 million, lifting total transaction-based revenue to $867 million. Operating expenses rose 16% to $739 million, and net interest revenue fell 9% to $415 million, compounding the pressure.

Beyond trading, the underlying platform showed strength. Robinhood Gold subscriptions hit a record 5.2 million members, up 34% from a year earlier, and total platform assets climbed 19% to $396 billion.

The company also lowered the upper end of its 2026 adjusted operating expense and share-based compensation outlook by $25 million, to a revised range of $2.675–$2.75 billion.

Crypto Briefing adds that Robinhood Chain, its Ethereum layer 2 launched July 1, generated over $80 billion in DEX volume and more than $50 million in chain fees in its first quarter.

Investors must now judge whether prediction markets and diversified trading can offset a weakening crypto business and rising costs.

Coinpaper notes questions about whether the prediction-markets segment can sustain momentum and attract new customers rather than simply redirecting existing trading activity. The after-hours decline suggested traders weighted the earnings miss more heavily than the record revenue.

Attention will also turn to Robinhood's expanding tokenization push: Crypto Briefing reports Ondo launched HOODon on Robinhood Chain the same day alongside 14 other tokenized stocks and ETFs, including Nvidia, Apple and Tesla, with 11 assets paired against Robinhood Stock Tokens via Uniswap v4 StablePair pools.

Upcoming quarters will likely be judged on profitability, expenses and crypto's trajectory.