Robinhood Doubles Revenue. The Stock Is Falling.

Robinhood beat expectations for third quarter results. (ionel Bonaventure / AFP / Getty Images)

Key Points

• Robinhood Markets reported adjusted earnings of 61 cents a share and record revenue of $1.27 billion, exceeding expectations.
• Revenue increased 100% from a year ago, driven by a 129% rise in transaction-based revenue to $730 million.
• Despite strong overall results, transaction-based revenue of $730 million fell short of the $743 million projection.

Robinhood Markets’ posted third-quarter earnings and revenue well above expectations, but its transaction-based revenue fell short of projections.

The stock was falling about 1% in after-hours trading but was down as much as 5% right after the earnings report.

The stock trading and crypto platform reported adjusted earnings of 61 cents a share on record revenue of $1.27 billion, up 100% from a year ago. It said transaction-based revenue during the quarter increased 129% to $730 million, boosted by cryptocurrencies revenue ($268 million) and options revenue ($304 million), and equities revenue ($86 million).

Wall Street expected Robinhood to report adjusted earnings of 56 cents a share on revenue of $1.21 billion, including transaction revenue of $743 million, according to FactSet.

The stock is up 282% year to date through Wednesday’s close, and up 377% over the past 12 months.

“Our team’s relentless product velocity drove record business results in Q3 and we’re not slowing down— Prediction Markets are growing rapidly, Robinhood Banking is starting to roll out, and Robinhood Ventures is coming,” said Chairman and CEO Vlad Tenev.

Chief Financial Officer Jason Warnick said two more business lines added during the quarter, Prediction Markets and Bitstamp, are generating about $100 million or more in annualized revenue.

Warnick said the current fourth quarter is off to a strong start, including “record monthly trading volumes across equities, options, prediction markets, and futures, and new highs for margin balances.”

Robinhood said it is not providing a 2025 outlook for total operating expenses and hasn’t reconciled its 2025 outlook for adjusted operating expenses and other costs to the most directly comparable generally accepted accounting principles financial measure— total operating expenses.

It added this is because it is unable to predict with reasonable certainty the effect of certain items without “unreasonable effort,” including “provision for credit losses and significant regulatory expenses which may be material and could have a significant impact on total operating expenses for 2025.”

For the full year, analysts expect Robinhood to report adjusted earnings of $1.79 a share on revenue of $4.34 billion, including $2.6 billion in transaction revenue.

The company sees itself increasingly becoming a one-stop-shop for consumer financial services, from cryptocurrency trading to wealth management. Robinhood in March launched a prediction markets product to allow U.S. users to bet on the outcomes of sporting events, politics, and economic indicators like gross domestic product and the consumer price index. Robinhood is considering expanding the product to international markets, Tenev told Bloomberg last month. “The rest of the world is very interested in prediction markets.”

Robinhood will host a video call to discuss its results at 5 p.m. Eastern time.

The company said CFO Warnick will retire next year, transitioning from his CFO role in the first quarter to continue as a strategic advisor through Sept. 1, 2026. Longtime Robinhood finance veteran Shiv Verma will become the next CFO.

Write to Janet H. Cho at janet.cho@dowjones.com