US neobroker Robinhood Markets Inc (NASDAQ:HOOD) has reported its results for Q3 2026, showing continued growth overall and in most product areas, but with increased operating expenses eating into profits.

After a record Q2 at Robinhood, revenues continued to tick up to (a new quarterly record of) $1.42 billion in Q3 2026, a 9% increase over Q2. However a 16% jump in operating expenses led to a 17% decrease in profits QoQ, $476 million in Q3 versus $573 million in Q2. Net profit was also impacted by unrealized losses primarily related to the mark-to-market of Robinhood Ventures Fund I.

Of interest, Prediction Markets revenues at Robinhood continued to climb in Q3, up 11% over Q2 to $173 million. Crypto revenues continued to slump, although at $120 million were 20% above Q2 – but still well below previous levels seen for crypto trading.

The market’s initial response was negative, with HOOD shares trading down about 6% in aftermarket trading late Tuesday afternoon, soon after the results were released.

Vlad Tenev, Chairman and CEO of Robinhood said,

“Our vision is to make everyone an owner, because broad ownership is essential to a free, stable, and prosperous society.”

Shiv Verma, Chief Financial Officer of Robinhood said,

“Customers are trusting us with more of their assets as we deliver on our product roadmap, leading to our highest quarter ever for revenue. We also added a new business cylinder with over $100 million in annualized revenues this quarter as Rothera scaled rapidly. And 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.”

Third Quarter Results

Total net revenues increased 12% year-over-year to $1.42 billion.

• Transaction-based revenues increased 19% year-over-year to $867 million, primarily driven by prediction markets event contracts revenue of $173 million ($156 million in Q2), options revenue of $399 million ($342 million in Q2), and equities revenue of $121 million ($129 million, in Q2), with cryptocurrencies revenue recovering somewhat to $120 million ($100 million in Q2).

Net interest revenues decreased 9% year-over-year to $415 million, primarily driven by lower securities lending activity and short-term interest rates, partially offset by growth in interest-earning assets.

Other revenues increased 61% year-over-year to $142 million, primarily driven by Trump Account service revenues and increased Robinhood Gold subscription revenues.

Net income decreased 14% year-over-year to $476 million, and diluted earnings per share (“EPS”) decreased 16% to $0.51.

• Net income included $67 million, or $0.07 of diluted EPS, of unrealized losses primarily related to the mark-to-market of Robinhood Ventures Fund I (“RVI”).

Adjusted Net Income (non-GAAP) decreased 3% year-over-year to $550 million, and Adjusted EPS (non-GAAP) decreased 3% to $0.60.

• Adjusted Net Income and Adjusted EPS are new non-GAAP financial measures introduced this quarter to provide a view of profitability before certain non-operating items; refer to page 13 for more information.

Total operating expenses increased 16% year-over-year to $739 million. The year-over-year increase was primarily driven by higher provisions for credit losses as we grow the credit card loan book, expenses related to Trump Accounts and Rothera, and marketing and growth investments.

• Adjusted Operating Expenses and Share-Based Compensation (“SBC”) (non-GAAP) increased 8% year-over-year to $664 million.

Adjusted EBITDA (non-GAAP) increased 9% year-over-year to $808 million.

Funded Customers increased by 1.9 million, or 7%, year-over-year to 28.7 million.

• Investment Accounts increased by 2.5 million , or 9%, year-over-year to 30.4 million.

Total Platform Assets increased 19% year-over-year to $396 billion, primarily driven by continued Net Deposits and higher equity valuations, partially offset by lower cryptocurrency valuations.

Net Deposits were $15.7 billion, an annualized growth rate of 17% relative to Total Platform Assets at the end of Q2 2026. Over the past twelve months, Net Deposits were $71.0 billion, a growth rate of 21% relative to Total Platform Assets at the end of Q3 2025.

Robinhood Gold Subscribers increased by 1.3 million, or 34%, year-over-year to 5.2 million.

Average Revenue Per User (“ARPU”) increased 5% year-over-year to $200.

Cash and cash equivalents totaled $5.8 billion, compared with $4.3 billion at the end of Q3 2025.

Share repurchases were $25 million, representing 0.2 million shares of our Class A common stock at an average price per share of approximately $105.

• Through Q3 2026, cumulative repurchases under our program since Q3 2024 total $1.3 billion, representing 27 million of our Class A shares at an average price per share of approximately $48.

Q3 Highlights

Robinhood Delivers Growth Across the Business as It Expands Global Access to Financial Markets

Platform for Active Traders

• Market share gains drove active trader engagement to new highs in Q3, with record volumes for equities, options, and prediction markets, and record margin balances.
• In September, Robinhood hosted its third annual HOOD Summit in Houston, with about 1,500 in-person attendees and more than 50 million livestream viewers. At the event, the company announced 17 new products and features aimed at making it the best platform for active traders, including Robinhood Agents and Agent Apps, 24/7 trading of select U.S. equities, perpetual futures for eligible U.S. customers, and earnings contracts in the prediction markets hub.
• To date, approximately 200 thousand customers have opened Agentic Trading Accounts, driving over $1.6 billion in notional trading volume.
• Rothera reached over $100 million in annualized revenues in its first full quarter of operation, with over 6.4 billion contracts traded since launch.

Wallet Share for the Next Generation

• Trump Accounts reached another major milestone as the U.S. Treasury launched automatic enrollment, establishing accounts for nearly 70 million children nationwide. Additionally, 25 million children have $250 invested thanks to Susan and Michael Dell’s $6.25 billion pledge.
• In Q3, Gold subscribers grew to a record 5.2 million, representing an 18 percent overall adoption rate and approximately 40 percent adoption rate among new customers.
• Robinhood Gold Card grew to 1.3 million customers with over $19 billion in total annualized payment volume in Q3.
• Robinhood Banking continued to drive momentum, with nearly $5 billion in deposits from over 350 thousand Funded Customers and approximately 40 percent of customers signed up for direct deposit to date.
• Robinhood Strategies grew to 350 thousand Funded Customers with over $2 billion in assets under management in Q3.
• Trust Accounts are over $300 million in assets with an average account size of over $400 thousand to date.

Global Financial Ecosystem

• Robinhood continued to grow its global footprint, launching crypto trading in the UK and announcing it has received authorization from the Dubai Financial Services Authority (“DFSA”) to launch in the region. The authorization covers trading and custody across all ten DFSA-approved asset classes, including equities, crypto, ETFs, and investment tokens. Robinhood plans to begin rolling out its product suite in the area in 2027.
• In its first quarter on Mainnet, Robinhood Chain became a top-five chain by revenue and volume, generating over $80 billion in DEX volume and over $50 million of chain fees.

Additional Q3 2026 Operating Data

• Robinhood Retirement AUC increased 51% year-over-year to a record $36.6 billion.
• Margin Book increased 59% year-over-year to a record $22.1 billion.
• Cash and Deposits increased 43% year-over-year to a record $20.4 billion.
• Cash Sweep decreased 9% year-over-year to $32.3 billion.
• Equity Notional Trading Volumes increased 53% year-over-year to a record $992 billion.
• Options Contracts Traded increased 48% year-over-year to a record 905 million.
• Crypto Notional Trading Volumes decreased 38% year-over-year to $50 billion, including Robinhood App Notional Volumes which decreased 48% year-over-year to $21 billion, and Bitstamp Notional Volumes which decreased  28% year-over-year to $29 billion.
• Event Contracts Traded increased over 7x year-over-year to a record 16.4 billion.

Financial Outlook

Robinhood’s prior outlook for 2026 Adjusted Operating Expenses and SBC provided at Q2 2026 Earnings (July 29, 2026) was $2.675 to $2.775 billion. As it looks ahead to the rest of the year, Robinhood is lowering the top end of its prior outlook by $25 million to a range of $2.675 to $2.75 billion to reflect ongoing efficiency gains across the business. This expense outlook does not include provision for credit losses, costs related to pending acquisitions, costs from equity modifications of restructuring and executive awards in connection with the CFO transition, interest expenses classified as operating expenses, potential significant regulatory matters, or other significant expenses (such as impairments, restructuring charges, and other business acquisition- or disposition-related expenses) that may arise or accruals the company may determine in the future are required, as Robinhood is are unable to accurately predict the size or timing of such matters, expenses or accruals at this time.

Robinhood’s full Q3 2026 results release can be seen here.