Robinhood's Event Contracts Out-Earn Crypto as Q3 Revenue Hits Record

Robinhood made more from event contracts than from crypto in the third quarter. Event contracts brought in $173 million, up more than sixfold, while crypto revenue fell 55% to $120 million, the company said Tuesday.

Total net revenue was a record $1.42 billion, up 12% from a year earlier. Profit went the other way.

For crypto readers, the slide shows up in trading as well as revenue. Robinhood's crypto notional volume (the dollar value traded) fell 38% to $50 billion. Volume in the Robinhood app dropped 48% to $21 billion, and its Bitstamp exchange fell 28% to $29 billion. The company said lower crypto prices also trimmed its platform assets, which still rose 19% to $396 billion.

Prediction markets set the record

Customers traded 16.4 billion event contracts, a record and more than seven times the year-ago count. Options revenue rose 31% to $399 million.

Net income fell 14% to $476 million, or 51 cents a diluted share, partly on $67 million of unrealized losses tied to its Robinhood Ventures Fund I. Adjusted EPS, a new non-GAAP measure, was 60 cents.

Robinhood Chain, in its first quarter on mainnet, produced over $50 million in chain fees and over $80 billion in DEX volume, the company said. It calls the network a top-five chain by revenue and volume.

October is off to a fast start. Chief Financial Officer Shiv Verma said net deposits "have already topped $13 billion month-to-date," including $6 billion tied to the Dell family's Trump Accounts contribution.

Black Mint couldn't confirm the after-hours share move from a second source before publication.

In our opinion: a year ago, crypto out-earned event contracts by more than $200 million. This quarter the order flipped, and the Q4 report will show whether it sticks.