Robinhood Markets’ (HOOD) stock is down 7% after the online brokerage reported disappointing financial results that were negatively impacted by a slowdown in crypto trading,
The company reported third-quarter earnings per share (EPS) of $0.51 U.S., which fell short of the $0.56 U.S. that had been expected on Wall Street.
Revenue of $1.42 billion U.S. matched the consensus forecasts of analysts. Sales were up 12% from same quarter of 2025.
Transaction-based revenue of $867 million U.S. came in below Wall Street estimates of $879 million U.S. and raised questions about whether Robinhood can sustain momentum in its trading business.
Robinhood Markets is diversifying and expanding its brokerage app into a broader financial services platform.
Management blamed the latest results on a decline in trading of cryptocurrencies during the summer months. Bitcoin (BTC) hit a multi-year low of $58,000 U.S. at the end of June this year.
Robinhood said the slowdown in crypto trading was partially offset by an increase in options trading and prediction markets during the quarter.
Revenue from trading event contracts on Robinhood’s prediction market platform rose 500% year-over-year during the quarter. Options contract revenue grew 31% from a year earlier.
However, revenue from trading crypto fell 55% to $120 million U.S. in the third quarter.
Net deposits on Robinhood’s trading platform totaled $15.7 billion U.S. for the quarter, equal to a 17% annualized growth rate.
Prior to today (Oct. 28), HOOD stock had declined 35% over the past 12 months to trade at $94.56 U.S. per share.
