- Robinhood reported adjusted earnings of $0.60 per share, beating the $0.56 FactSet consensus estimate.
- Robinhood Gold memberships expanded by 1.3 million to a record 5.18 million users in Q3.
- Net revenue rose 12% year-over-year to $1.42 billion, slightly missing the projected $1.44 billion forecast.
- Crypto transaction volume fell 38%, but options and prediction contracts boosted transaction-based revenue 19%.
Robinhood Markets (HOOD) saw its share price drop after-hours Tuesday after the stock brokerage missed Q3 revenue expectations despite record transaction income and strong subscriber growth.
The company reported adjusted earnings of $0.60 per share, comfortably beating FactSet consensus estimates of $0.56. However, net revenue rose 12% year-over-year to $1.42 billion, falling just below the projected $1.44 billion mark.
Operating expenditures were contained at $664 million—up 8% year-over-year—coming in significantly lower than the $776 million analysts had projected. Consequently, the firm’s diversified revenue strategy showed resilience even as crypto transaction volume fell 38% in the quarter ending September.
Growth surged across options and event-based prediction contracts, helping drive transaction-based revenue up 19%. Prediction markets, operated under Rothera—a CFTC-licensed exchange launched via a joint venture with Susquehanna International Group—have emerged as a new business pillar generating upwards of $100 million in annualized revenues.
Meanwhile, Robinhood Gold added 1.3 million users during the quarter, reaching a record 5.18 million subscribers, roughly 18% of funded accounts.
“We’re entering Q4 with strong momentum, as October Net Deposits have already topped $13 billion month-to-date, including $6 billion from the Dell family’s contribution to Trump Accounts,” said Robinhood CFO Shiv Verma.
Looking ahead, the firm launched “Robinhood Agents” in September, allowing users to deploy automated trading models directly within the mobile app. Retail sentiment on Stocktwits was ‘bullish’ with ‘high’ message volumes.
A user claimed the after-hours drop was an overreaction and anticipated a pop in the stock, despite HOOD shares having lost about 19% year-to-date.
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