Robinhood Misses Profit Estimates as Crypto Revenue Falls 55% and Prediction-Market Sales Jump 500%
Updated
Updated · Yahoo Finance · Oct 29
Robinhood Misses Profit Estimates as Crypto Revenue Falls 55% and Prediction-Market Sales Jump 500%
1 articles · Updated · Yahoo Finance · Oct 29
Summary
Robinhood posted weaker-than-expected profit as lower interest income and higher expenses offset heavy customer trading across stocks, options and prediction markets.
Prediction-market revenue surged more than 500% year over year to $173 million, with customers trading a record 16.4 billion contracts in the quarter.
Crypto trading moved the other way: revenue plunged 55% to $120 million as activity slumped alongside bitcoin's weaker 2026 performance.
Retail behavior is shifting beyond Robinhood — Goldman Sachs said overall retail volumes are down about 20% since midsummer and more than 40% since year-end, while leveraged ETF trading has run roughly double comparable plain-vanilla ETFs.
Investor caution is also rising: Morgan Stanley Wealth Management found 42% of investors bearish this quarter, up 4 percentage points from Q3 on inflation, election uncertainty and rate-hike expectations.