Robinhood Doubles Down on Event Contracts as Crypto Revenue Drops 55%

Robinhood Markets (NASDAQ: HOOD) reported third quarter 2026 results on October 27, with event contracts revenue rising more than sixfold while cryptocurrency revenue fell by more than half.

Total net revenues rose 12% year over year to $1.42 billion. Transaction-based revenues increased 19% to $867 million. Net income fell 14% to $476 million, and diluted earnings per share dropped 16% to $0.51.

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Prediction Markets Set Records

Event contracts generated $173 million in revenue, up over 6x. Contracts traded rose over 7x to a record 16.4 billion. Robinhood said it recorded record volumes for equities, options and prediction markets during the quarter.

Chief Financial Officer Shiv Verma said the company “added a new business cylinder” with over $100 million in annualized revenues as Rothera scaled rapidly. Robinhood said Rothera has seen over 6.4 billion contracts traded since launch. The company also said October net deposits had topped $13 billion month to date, and that it was “entering Q4 with strong momentum.”

At its HOOD Summit in September, Robinhood announced 17 new products and features, including earnings contracts in the prediction markets hub, perpetual futures for eligible U.S. customers and 24/7 trading of select U.S. equities.

The growth follows a steep climb. Robinhood launched its prediction markets hub in March 2025, allowing users to trade on political, economic and sports outcomes. Finance Magnates reported earlier that the platform handled 8.5 billion event contracts in the final quarter of 2025, against 2.3 billion in the prior period. The first quarter of 2026 brought 8.8 billion contracts.

Robinhood first built its offering through Kalshi, the CFTC-regulated event contract exchange, and later took minority stakes in Crypto.com and its prediction markets business, OG. The product has drawn regulatory attention. State regulators in Connecticut issued cease-and-desist orders to several prediction market platforms, Robinhood among them, arguing that sports-linked contracts resembled unlicensed sports betting.

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Crypto Volumes Decline

Cryptocurrency revenue fell 55% year over year to $120 million. Crypto notional trading volumes dropped 38% to $50 billion. Volumes on the Robinhood app fell 48% to $21 billion, and Bitstamp volumes fell 28% to $29 billion.

The comparison quarter was stronger. Finance Magnates reported that Robinhood recorded $80 billion in notional crypto volume in the prior-year quarter, split evenly between the Robinhood app and Bitstamp.

The release noted that total platform assets rose 19% to $396 billion, driven by net deposits and higher equity valuations, partly offset by lower cryptocurrency valuations.

Robinhood continued its crypto expansion outside the U.S. It launched crypto trading in the UK and received authorization from the Dubai Financial Services Authority covering trading and custody across all ten DFSA-approved asset classes, including crypto. A rollout in the region is planned for 2027.

Robinhood Chain, in its first quarter on Mainnet, became a top-five chain by revenue and volume, according to the company. It generated over $80 billion in DEX volume and over $50 million in chain fees.

Other figures from the quarter: Gold subscribers rose 34% to a record 5.2 million, and funded customers reached 28.7 million. About 200,000 customers have opened Agentic Trading Accounts, driving over $1.6 billion in notional trading volume.