Total net revenues of $1.42 billion landed 1.0% below the API Ninjas estimate of $1.44 billion, a miss, while adjusted EPS of $0.60 beat the $0.558 estimate by 7.5%.
Revenue rose 12% year-over-year to a record, but GAAP net income fell 14% to $476 million and diluted EPS fell 16% to $0.51, including $67 million of unrealized losses on Robinhood Ventures Fund I worth $0.07 of diluted EPS.
Prediction markets became a real revenue line: event contracts revenue of $173 million, up over 6x, on 16.4 billion contracts traded, with the Rothera joint venture crossing $100 million in annualized revenue in its first full quarter.
The only guidance given came down at the top end: 2026 Adjusted Operating Expenses and SBC of $2.675 to $2.75 billion, against $2.675 to $2.775 billion set in July, on stated efficiency gains.
The one thing that matters: 12% revenue growth is an engine swap rather than broad strength, with event contracts at $173 million (up over 6x) and options at $399 million (+31%) carrying the quarter while crypto revenue fell 55% to $120 million and net interest revenue fell 9% to $415 million.
Key metrics
Metric
Reported
Prior year
Change
Total Platform Assets
$396 billion
—
+19%
Net Deposits
$15.7 billion
—
annualized growth rate of 17%
Adjusted EBITDA (non-GAAP)
$808 million
$742 million
+9%
Net income
$476 million
$556 million
-14%
Event Contracts Traded
16.4 billion
—
over 7x
Robinhood Gold Subscribers
5.2 million
—
+34%
Guidance changes
Item
New guidance
Prior guidance
2026 Adjusted Operating Expenses and SBC
$2.675 to $2.75 billion
$2.675 to $2.775 billion
Quality of earnings
Reported earnings are weaker than the adjusted line. GAAP net income fell 14% to $476 million and diluted EPS 16% to $0.51 on 12% revenue growth, while Adjusted Net Income of $550 million and Adjusted EPS of $0.60 are measures introduced this quarter; the gap rests largely on $67 million of unrealized mark-to-market losses on Robinhood Ventures Fund I, worth $0.07 of diluted EPS.
Costs outgrew revenue, and the fastest-growing cost is excluded from the adjusted measure. Total operating expenses rose 16% to $739 million against 12% revenue growth, with provision for credit losses up 173% to $71 million as the credit card book grows, an expense Adjusted Operating Expenses removes by definition.
Operating leverage still shows at the EBITDA line. Adjusted EBITDA rose 9% to $808 million at a 57% margin, against 58% a year earlier, so the platform is still scaling even as reported profit falls.
Gotchas & watch items
The yardstick is new: Adjusted Net Income and Adjusted EPS were introduced this quarter, and the $0.60 adjusted figure is what the consensus comparison runs against, while GAAP diluted EPS of $0.51 is down 16% year-over-year.
Net interest income is eroding beneath growing balances: net interest revenues fell 9% to $415 million on lower securities-lending activity and short-term rates, even as Margin Book grew 59% to a record $22.1 billion and Cash Sweep fell 9% to $32.3 billion.
Deposit momentum is stronger than the quarter shows: October net deposits have already topped $13 billion month-to-date, including $6 billion from the Dell family's contribution to Trump Accounts, against $15.7 billion for all of Q3.
The crypto decline is platform-wide, not an app-only issue: crypto notional volumes fell 38% to $50 billion, with Robinhood App volumes down 48% to $21 billion and Bitstamp down 28% to $29 billion.