Robinhood Crypto Revenue Rises 20% as Chain Adds $26 Million

Robinhood Chain Drives the Sequential Crypto Rebound

Robinhood Chain accounted for $26 million of third-quarter crypto revenue after going live on July 1. Excluding the layer-2 network, crypto transaction revenue fell 6% from the second quarter to $94 million. Crypto revenue had totaled $100 million in the previous quarter and $268 million in the third quarter of 2025.

Crypto trading activity nevertheless increased sequentially. Quarterly volume rose 23% to $49.8 billion, including $20.6 billion through the Robinhood app and $29.2 billion through Bitstamp. Other figures in Robinhood’s earnings coverage rounded those amounts to $50 billion, $21 billion and $29 billion, respectively. On a year-over-year basis, total crypto volume was down 38%, with Robinhood app volume and Bitstamp volume down 48% and 28%, respectively.

Robinhood Chain, a layer-2 blockchain built on Arbitrum, processed more than $80 billion in decentralized exchange volume and generated more than $50 million in fees during the quarter. Its recognized contribution to Robinhood’s crypto revenue was smaller than those network fees. By the end of August, the network had generated about $3.13 million in fees over a 30-day period, compared with $2.47 million for Ethereum and $2.89 million for Base over the same period.

The network’s early activity was driven by meme coins rather than the tokenized stocks it was designed to support. Robinhood Chain later surpassed $100 billion in cumulative trading volume roughly three and a half months after its mainnet launch.

Prediction Markets Generate More Revenue Than Crypto

Prediction markets remained a larger revenue source than crypto during the quarter. Event contracts generated $173 million, up from $156 million in the second quarter, when the business first moved ahead of crypto revenue.

Customers traded a record 16.4 billion event contracts during the quarter, more than seven times the year-earlier total. The products cover outcomes including sports, elections and economic data, paying $1 when a contract’s specified outcome occurs.

Rothera, Robinhood’s derivatives exchange investment alongside Susquehanna International Group, contributed $28 million to event-contract revenue. Robinhood said Rothera exceeded $100 million in annualized revenue during its first full quarter and had processed more than 6.4 billion contracts since launch.

Robinhood has also taken minority stakes in Crypto.com and prediction-market spinoff OG.com. CEO Vlad Tenev had said in December, “I believe we’re at the very beginning of a prediction market supercycle,” as the company expanded its offering with NFL player contracts and parlay-style products.

Earnings Miss Expectations Despite Record Revenue

Robinhood’s record revenue did not translate into an earnings beat. Diluted earnings came to $0.51 per share, down from $0.61 a year earlier. Attached earnings coverage cited analyst expectations of $0.55 per share, while another estimate put the consensus at about $0.56. Revenue of $1.42 billion was also slightly below an expectation of roughly $1.43 billion.

Net income of $476 million compared with $556 million a year earlier and $573 million in the second quarter, declines of 14% and 17%, respectively. Results included a $67 million unrealized loss on Robinhood Ventures Fund I, which reduced earnings by $0.07 per share. Adjusted earnings per share were $0.60, down 3% from a year earlier.

Other transaction businesses posted stronger growth. Options generated $399 million in revenue, up 31%, while equities revenue increased 41% to $121 million.

Robinhood ended the quarter with 28.7 million funded customers, a 7% year-over-year increase. Total platform assets rose 19% to $396 billion, while Robinhood Gold subscriptions reached a record 5.2 million.

The company narrowed its 2026 outlook for adjusted operating expenses and stock-based compensation to between $2.675 billion and $2.75 billion. The previous range set in July was $2.675 billion to $2.775 billion.