Robinhood delivered another strong quarter, posting sharp gains in revenue and profit as crypto activity surged. Markets pulled back slightly after hours, but the company’s year-to-date rally remains among the strongest in publicly traded fintech and crypto-adjacent firms.
Key Highlights
- •Robinhood nearly doubles revenue to $1.2B, driven by sharp crypto trading gains and expanding prediction market activity.
- •Earnings jump 217% year-over-year as profits hit $556M, boosted by strong user engagement across new product offerings.
- •Prediction markets generate $100M+, with event-based sports contracts fueling higher platform participation.
- •Stock up 260% YTD despite after-hours dip, outpacing major fintech and crypto peers as analysts stay bullish.
Robinhood Earnings Jump 217% in Breakout Quarter
Robinhood Markets reported $1.2 billion in Q3 revenue, nearly double its revenue from a year earlier and ahead of Wall Street forecasts. Earnings rose to $0.61 per share—up about 217% year-over-year—as profits hit $556 million.
CEO Vlad Tenev credited rapid product expansion for the results, citing growth in prediction markets, the rollout of Robinhood Banking, and the firm’s early-stage investment arm, Robinhood Ventures.
Our team’s relentless product velocity drove record business results in Q3 and we’re not slowing down—prediction markets are growing rapidly, Robinhood Banking is starting to roll out, and Robinhood Ventures is coming.
Vlad Tenev
Shares slipped in after-hours trading following Wednesday’s close at $143.40. Even so, the stock has soared about 260% since January, beating competitors such as Coinbase, which is up roughly 25% over the same period.
Robinhood Rides Crypto Revival While Event-Based Trading Gains Traction
Crypto trading again served as a major driver of this impressive market growth. Revenue from crypto transactions reached $268 million, more than triple last year’s figure for the same quarter. That performance follows $160 million in Q2 and $252 million in Q1, signaling steady demand from users despite broader volatility in digital assets.
Transaction-based income totaled $730 million, slightly below analysts’ expectations. Prediction markets stood out, generating more than $100 million. Robinhood’s move into event contracts has proven timely, with sports wagering and economic forecasts drawing consistent interest.
Midway through the release, Robinhood detailed several operational shifts and performance factors:
- •Strong crypto turnover despite uneven market sentiment.
- •Increased revenue from prediction markets.
- •Higher user engagement from sports-related event contracts.
- •Expanded services through Robinhood Banking.
- •A year-to-date stock climb outpacing sector peers.
Menlo Park–based Robinhood also announced an upcoming leadership change. CFO Jason Warnick plans to retire next year, with company veteran Shiv Verma set to take over the role.
Market Pullback Seen as Temporary as Analysts Call for Institutional Bitcoin Rebound
Q2 results had already pointed to strong momentum, with $989 million in revenue and $0.42 earnings per share, both above projections. Analysts at Compass Point recently reaffirmed a “buy” rating, raising their price target to $161—above Robinhood’s prior record of $153 from October.
Compass Point expects about $50 million in Q4 revenue from prediction markets during a full NFL season. Robinhood entered sports wagering in August through a partnership with prediction market operator Kalshi, which lets customers place event-based bets on NFL and college football games.
The platform also offers markets tied to economics, culture, and technology. Trading on these contracts is commission-free, though a one-cent fee applies per trade.
Crypto-centric firms continue to face an uncertain macro backdrop. Bitcoin gained just over 6% in Q3—a modest rise after a sharp 30% jump in the prior quarter. As per market data, the OG crypto sits at $102,957, up 1.1% in the past 24 hours but still down almost 18% from its all-time high reached a month ago.
Despite the market’s decline, crypto commentators see the dip as temporary. Bitwise CIO Matt Hougan says recent selling reflects retail exhaustion rather than a structural downturn, arguing that waning retail interest could create room for institutional buyers to return.
Former BitMEX CEO Arthur Hayes added that U.S. monetary conditions may set the stage for the next bull cycle, pointing to what he describes as subtle liquidity support from the Federal Reserve.