Robinhood Markets reported cryptocurrency transaction revenue of $120 million in the third quarter of 2026, down 55 percent year-over-year. The decline signals softening retail crypto demand even as the company posted record total revenue of $1.42 billion.
Crypto trading volumes across Robinhood's platforms dropped 38 percent to $50 billion. The Robinhood app saw $21 billion in volume, a 48 percent decline. Bitstamp, acquired in June 2025, processed $29 billion in volume, down 28 percent.
The Q3 crypto result marks a 20 percent sequential improvement from Q2's $100 million, but that quarter itself declined 38 percent year-over-year—indicating persistent pressure on the crypto business.
Robinhood's overall strength came from options trading, which generated $399 million in revenue, up 31 percent, and prediction markets, which surged to $173 million, more than six times the prior-year figure. Transaction-based revenue overall climbed 19 percent to $867 million, with equities revenue rising 41 percent to $121 million.
Robinhood Chain, an Ethereum Layer 2 built on Arbitrum, completed its first quarter on mainnet in Q3. The network processed over $80 billion in decentralized exchange trading volume and generated more than $50 million in network fees. Launched July 1, the chain surpassed $100 billion in cumulative trading volume within roughly three and a half months, briefly exceeding Coinbase's Base network in 30-day decentralized exchange activity.
Network trading volume and fees do not directly translate to equivalent revenue recognized by Robinhood.
Robinhood expanded its international crypto footprint in the quarter, launching crypto trading in the United Kingdom and securing authorization from the Dubai Financial Services Authority to offer trading and custody services. The company plans to roll out crypto products in Dubai beginning in 2027.
Despite record revenue, Robinhood's Q3 net income fell 14 percent to $476 million. Diluted earnings per share declined 16 percent to $0.51, missing analyst expectations of $0.56, according to the company's Oct. 27 earnings report.
