Robinhood’s New Channel Boosts Crypto Revenue Despite Missing Third Quarter Profit

Robinhood’s crypto business finally rebounded last quarter, and its own Ethereum 2 layer deserves much of the credit.

According to the brokerage Results for the 3rd quarter of 2026released Tuesday (Oct. 27), crypto revenue came in at $120 million, down 55% year-over-year but up 20% from $100 million in Q2 as Robinhood Chain completed its first quarter on mainnet.

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• Channel loot: Robinhood Chain processed over $80 billion in DEX transactions and spent over $50 million in fees last quarter, placing it among the top five chains in terms of revenue and volume. During the earnings call, CFO Shiv Verma estimated Robinhood’s net income at about $25 million, or about $100 million annualized.

• The compromise to win: Verma blamed a lower crypto rate on Robinhood Earn, the company’s USDG yield product built on Morpho, which he said holds “over $500 million” but pays Robinhood less than its typical trading business. Volume also played a role. Notional crypto volume fell 38% year-over-year to $50 billion, and Bitstamp now manages more ($29 billion) than the Robinhood app itself ($21 billion).

• Prediction markets are leading: Event contracts brought in $173 million, more than 6 times their total from last year, beating crypto for a second straight quarter. Verma told Reuters that prediction markets are “already a business that brings in almost $500 million a year.”

• Mixed bag overall: Revenue rose to a record $1.42 billion, up 12% year over year, but Robinhood’s diluted EPS of $0.51 fell short of analysts’ consensus of about $0.55 to $0.56, weighed down in part by $67 million in unrealized losses tied to Robinhood Ventures Fund I. HOOD shares slipped after hours and were still trading lower Wednesday morning.

• Perspective: Robinhood Chain is now a real source of income, but perhaps not stable yet. Q3 fees were boosted by the late summer memecoin craze, and by the end of August, L2 was outperforming every major chain except Canton in daily organic revenue. Next, Coinbase reports on Thursday (Oct. 29), which should show whether the retail crisis is Robinhood’s problem or that of the entire industry.