Robinhood's third-quarter cryptocurrency trading business took a sharp hit, with transaction revenue falling 55% from a year earlier to $120 million, though the figure edged past Wall Street estimates of $114.1 million. The results showed crypto revenue now accounts for just 8.4% of total revenue, down from roughly 21% a year ago.
Total quarterly revenue rose 12% year-over-year to $1.424 billion, just shy of the $1.43 billion analysts had forecast. Growth was driven by options trading, which generated $399 million in revenue (up 31%), equities revenue climbing 41% to $121 million, and prediction markets surging to $173 million, more than six times the prior-year figure. Earnings per share came in at $0.51, below consensus expectations of $0.55.
The decline in crypto activity was widespread. Total crypto trading volume fell 38% to $50 billion, comprising $21 billion through the Robinhood app (down 48%) and $29 billion via crypto exchange Bitstamp (down 28%).
Despite the weaker trading environment, Robinhood continued expanding its digital asset infrastructure. The company said its newly launched blockchain network, Robinhood Chain, processed more than $80 billion in decentralized exchange trading volume and generated over $50 million in chain fees during its first quarter on mainnet. Those fees reflect on-chain activity and are separate from the reported crypto transaction revenue; Robinhood did not disclose how much of the chain fees it recognized as revenue.
Shares of Robinhood were down about 5% in post-market trading following the earnings release.