Robinhood said customers traded a record 16.4 billion event contracts in the third quarter, more than seven times the count from a year earlier and up from 13.6 billion in the second quarter. The brokerage disclosed the figures after the market closed on Tuesday, Oct. 27.
Rothera, the prediction-market exchange launched in June through Robinhood’s joint venture with Susquehanna International Group, topped $100 million in annualized revenue in the third quarter, its first full quarter of operation. That made it the company’s 14th business line to reach that level. Since launch, more than 6.4 billion contracts have traded on Rothera.
Revenue hits a record while diluted EPS misses estimates
Robinhood reported total net revenue of $1.42 billion in the third quarter, up 12% from a year earlier and above $1.31 billion in the second quarter. The result matched the $1.42 billion projected by Zacks.
Diluted earnings per share fell 16% to $0.51, below the Zacks estimate of $0.55 and down from $0.62 in the prior quarter. The figure included $67 million in unrealized losses, or $0.07 a share, mostly tied to marking Robinhood Ventures Fund I to market. Under a new non-GAAP measure, adjusted EPS came to $0.60.
Event contracts stay ahead of crypto
Event contract revenue rose more than sixfold from a year earlier to $173 million, again ahead of crypto revenue. It also increased 11% from $156 million in the second quarter, when it had already outpaced both crypto and equities.
A day before the earnings report, Bernstein analysts projected that prediction markets could generate $1.7 billion for Robinhood in 2028, ahead of the $1.6 billion they expect from crypto. They put this year’s prediction-market revenue at roughly $650 million.
Crypto revenue rises from the prior quarter, but volume falls from a year ago
Crypto revenue increased 20% to $120 million from $100 million in the second quarter, though it was down 55% from a year earlier.
Crypto notional trading volume dropped 38% year over year to $50 billion, with Bitstamp handling $29 billion of that total. Robinhood said lower crypto prices partly offset growth in total platform assets, which rose 19% from a year earlier to $396 billion.
Robinhood Chain and perpetual futures update
In its first quarter on mainnet, Robinhood Chain handled more than $80 billion in DEX volume and generated over $50 million in fees. The company said memecoin activity pushed its fees above Solana and BNB Chain by early September.
At its September HOOD Summit, Robinhood also announced perpetual futures for eligible U.S. customers.
Net deposits slow in the quarter, October month-to-date tops $13 billion
Net deposits slowed to $15.7 billion from $21.7 billion in the second quarter. Chief Financial Officer Shiv Verma said in the release that October net deposits had already topped $13 billion month-to-date, including $6 billion from the Dell family’s contribution to Trump Accounts.