Robinhood Markets (NASDAQ: HOOD) released its third-quarter 2026 financial results on October 27, reporting a sequential increase in cryptocurrency revenue even as conventional trading activity softened.
Overall crypto transaction-based revenue rose 20 percent from the second quarter to $120 million.
The gain stemmed almost entirely from the initial contribution of Robinhood Chain, the firm’s proprietary layer-2 blockchain, which added $26 million in net revenue during its first full quarter of mainnet operations after going live on July 1.
Excluding the chain, crypto transaction revenue declined 6 percent quarter-over-quarter to $94 million.
The year-over-year comparison remained markedly weaker, with total crypto revenue 55 percent below the third quarter of 2025, when digital-asset markets were near prior-cycle peaks.
Company materials note that the $120 million figure includes the $26 million attributable to Robinhood Chain.
Crypto notional trading volumes across the platforms advanced 23 percent from the prior quarter to $49.8 billion.
This total encompassed roughly $29.2 billion processed through Bitstamp, the institutional exchange Robinhood acquired, with the Robinhood app itself contributing the balance.
Year-over-year, crypto notional volumes fell 38 percent to $50 billion, reflecting lower activity on both the app (down 48 percent to $21 billion) and Bitstamp (down 28 percent to $29 billion).
Robinhood Chain, constructed as an Arbitrum-based layer-2 network, processed more than $80 billion in decentralized-exchange volume and generated more than $50 million in chain fees during the quarter.
In the official earnings materials, the company highlighted that the network ranked among the top five chains by both revenue and volume in its debut quarter.
The $26 million recognized as crypto revenue represents the portion of those fees attributed to Robinhood after ecosystem allocations.
Prediction markets continued to generate more revenue than crypto.
Event-contract revenue reached $173 million, an 11 percent sequential increase and more than six times the year-earlier amount.
Customers traded a record 16.4 billion contracts in the period.
This business line has now exceeded crypto revenue for two consecutive quarters, illustrating the company’s progress in diversifying transaction-based income.
Across the company, total net revenue set a record at $1.42 billion, up 12 percent year-over-year.
Transaction-based revenues rose 19 percent to $867 million, driven by the gains in event contracts, options revenue of $399 million (up 31 percent), and equities revenue of $121 million (up 41 percent), partially offset by the year-over-year decline in crypto.
Diluted earnings per share were $0.51, while adjusted EPS stood at $0.60. Funded customers reached 28.7 million, Robinhood Gold subscribers hit a record 5.2 million, and net deposits totaled $15.7 billion for the quarter.
The results highlight a rebalancing within Robinhood’s digital asset operations.
Legacy spot-trading volumes and associated revenue remain substantially below prior highs, yet the proprietary chain has rapidly emerged as a material incremental contributor and a top-tier network by volume and fees in its first quarter.
Whether that early activity can be sustained as initial speculative bursts normalize, and whether tokenized equities and other real-world assets can deliver more consistent fee generation, will be central questions in subsequent periods. For the moment, prediction markets remain the larger and faster-growing adjacent revenue stream.
