Robinhood Q3 Revenue Soars 100% to $1.2B, Stock Up 260%

Robinhood Markets announced Wednesday that it generated $1.2 billion in revenue for its third quarter, representing a nearly 100% gain from the same period a year ago and exceeding analysts’ expectations. The Menlo Park, California-based company reported earnings per share of $0.61, a roughly 217% year-over-year rise, and $556 million in profits according to MarketScreener, both figures surpassing forecasts. This continues the online brokerage’s strong top-line growth trajectory, building on last quarter’s $989 million in total sales that had already exceeded expectations.

Robinhood Chairman and CEO Vlad Tenev attributed the record results to his team’s “relentless product velocity” in a statement, emphasizing that the company is “not slowing down” as prediction markets grow rapidly, Robinhood Banking begins to roll out, and Robinhood Ventures prepares for launch. Despite the strong earnings announcement, Robinhood shares ticked down slightly in after-hours trading from their Wednesday closing price of $143.40, according to Yahoo Finance data.

Crypto transaction revenues regained significant momentum in Q3, rising to $268 million—a more than 300% increase from the same period a year ago. This represents substantial growth from the $160 million recorded in Q2 and $252 million in Q1, indicating accelerating crypto trading activity on the platform. The crypto revenue surge occurred despite what the company described as a “less vibrant, more unpredictable digital asset market amid macroeconomic uncertainties.”

Bitcoin’s price rose more than 6% in Q3, a relatively tepid increase following its 30% spike in the previous quarter. According to CoinGecko data, the largest cryptocurrency by market value was recently trading at $103,644, up 4.4% over the past 24 hours, though down nearly 18% from its all-time high set a month ago. Interestingly, in a Myriad prediction market, about 70% of respondents believe BTC will move to $115,000 rather than dip to $85,000, suggesting continued bullish sentiment among traders.

While still a smaller part of its overall business, prediction markets represented a bright spot in Robinhood’s Q3 results and future growth strategy. The company began letting customers wager on NFL and college football games in August through a partnership with prediction market Kalshi, and analysts at investment bank Compass Point project Robinhood will likely generate $50 million in fourth-quarter revenue “alongside a full quarter of NFL season,” referring to America’s most popular pastime.

Beyond sports, Robinhood currently offers prediction markets on other subjects including economics, culture, and technology. Although Robinhood offers commission-free trading on stocks and cryptocurrencies, the firm charges customers a one cent fee on trades involving event contracts, creating a new revenue stream. The expansion of prediction markets to other countries represents another potential growth vector for the company.

Investment bank Compass Point maintained its “buy” rating on Robinhood and boosted its price target to $161 in its latest analyst note, citing the growth of prediction markets among other factors. This new target would exceed Robinhood’s previous record of $153 set in October. The confidence from Wall Street comes as Robinhood’s stock price has skyrocketed approximately 260% year-to-date, dramatically outperforming crypto-native competitors like Coinbase, whose shares have jumped approximately 25% since January 1.

The company reported $730 million in transaction-based income, slightly lower than consensus predictions, but this was more than offset by the stronger-than-expected performance in other revenue segments. Robinhood’s ability to exceed expectations across multiple quarters has reinforced investor confidence in the company’s growth strategy and execution capabilities under CEO Vlad Tenev’s leadership.