GET DAILY SIGNALSRobinhood (HOOD) Posts Record Revenue but EPS Falls 17% in Q3 2026
Key Takeaways
- Robinhood reported record total net revenues of $1.42 billion for the third quarter of 2026, up 12% year over year.
- GAAP diluted earnings per share (EPS) came in at $0.51, down 17% from $0.61 a year earlier, while net income fell 14% to $476 million.
- Adjusted (non-GAAP) EPS of $0.60 topped consensus estimates, but revenue of $1.42 billion landed slightly below the roughly $1.43 billion Wall Street expected.
- Transaction-based revenues jumped 19% to $867 million, while cryptocurrency revenue slid 55%, a key drag on growth.
- Funded customers grew 7% to 28.7 million, Gold subscribers hit a record 5.2 million, and total platform assets rose 19% to $396 billion.
- Shares fell about 3.5% in after-hours trading following the release.
- For more detail on the ticker's Major News, Today's Price Move, Price Targets, and Forecast, explore these dedicated pages.
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Earnings Context and Why It Matters
Robinhood's third-quarter results provide a useful snapshot of retail trading activity and the company's efforts to broaden its business beyond commission-free brokerage services. The quarter reflected strength in equities, options, and prediction markets, along with record customer deposits and Gold subscriptions. At the same time, a sharp drop in crypto trading activity limited overall growth, highlighting how exposed the platform remains to swings in digital-asset volumes. As the company moves into banking, advisory, retirement, and international markets, I am watching closely to see whether these newer areas can gain enough traction to reduce reliance on transaction-based revenue and support steadier profitability.
Reported Results
For the third quarter of 2026, ended September 30, Robinhood reported total net revenues of $1.42 billion, an increase of 12% from $1.27 billion in the prior-year period. Transaction-based revenues rose 19% to $867 million, driven by record equity and options volumes, while net interest revenues declined 9% to $415 million and other revenues climbed 61% to $142 million. Cryptocurrency revenue fell 55% to roughly $120 million. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Net income decreased 14% year over year to $476 million, with diluted EPS of $0.51, down 17% from $0.61. Total operating expenses rose 16% to $739 million, including a $71 million provision for credit losses, up from $26 million a year ago. On a non-GAAP basis, adjusted EPS of $0.60 exceeded consensus expectations, though total revenue came in slightly below analyst estimates of about $1.43 billion. The company did not provide a 2026 outlook for total operating expenses.
Operating metrics remained strong. Funded customers grew 7% to 28.7 million, Gold subscribers reached a record 5.2 million, and total platform assets increased 19% to $396 billion, supported by roughly $16 billion in net deposits during the quarter. Average revenue per user (ARPU) rose 5% to $200.
Market Reaction and Investor Sentiment
Investors responded cautiously to the mixed report, sending HOOD shares down about 3.5% in after-hours trading. The record top line and better-than-expected adjusted EPS were partly offset by the modest revenue miss, the decline in net income, and a softer crypto trading environment. Sentiment also reflected some disappointment around the absence of a full-year 2026 operating expense outlook, which may have left investors wanting greater clarity on cost discipline. Still, the strong deposit growth, record Gold adoption, and momentum in equities, options, and prediction markets signaled robust underlying engagement, tempering the negative reaction and highlighting the stock's sensitivity to both transaction volumes and expense trends.
Forward Outlook and Key Factors to Monitor
Looking ahead, investors will be watching whether Robinhood can sustain its momentum in customer deposits and premium subscriptions while managing rising costs. Net deposits were a clear bright spot, and management noted that October deposits had already surpassed $13 billion month-to-date, partly reflecting a large contribution tied to Trump Accounts. Sustaining that inflow pace would support growth in net interest revenue and platform assets.
Crypto activity remains a key swing factor. With crypto notional trading volumes down 38% year over year, a rebound in digital-asset trading would meaningfully lift transaction-based revenue, while continued weakness could pressure the top line even as equities and options stay strong.
Costs will also be in focus. Operating expenses rose 16% and credit-loss provisions climbed sharply, so investors will monitor whether the company can balance investment in new products and global expansion with profitability. Finally, the scaling of newer initiatives, such as the Rothera prediction-market business and agentic trading, will be an important indicator of Robinhood's ability to diversify its revenue streams beyond traditional trading.
Using Tickeron’s AI Tools for Deeper Analysis
In my own research process, I often turn to Tickeron’s AI-powered tools to cross-check earnings data and compare HOOD against peers. The AI Screener helps surface comparable financial names quickly, while the AI Trend Prediction Engine and AI Pattern Search Engine provide additional context on technical setups and potential price movements. These resources have become a regular part of how I evaluate quarterly results like this one.
Disclaimer
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
HOOD's Indicator enters downward trend
The Aroon Indicator for HOOD entered a downward trend on October 26, 2026. Tickeron's A.I.dvisor identified a pattern where the AroonDown red line was above 70 while the AroonUp green line was below 30 for three straight days. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options. A.I.dvisor looked at 196 similar instances where the Aroon Indicator formed such a pattern. In 170 of the 196 cases the stock moved lower. This puts the odds of a downward move at 87%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 02, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on HOOD as a result. In 44 of 69 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 64%.
The Moving Average Convergence Divergence Histogram (MACD) for HOOD turned negative on September 28, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 46 similar instances when the indicator turned negative. In 37 of the 46 cases the stock turned lower in the days that followed. This puts the odds of success at 80%.
HOOD moved below its 50-day moving average on October 14, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for HOOD crossed bearishly below the 50-day moving average on October 16, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 9 of 14 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 64%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where HOOD declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 79%.
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where HOOD's RSI Oscillator exited the oversold zone, 23 of 28 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 82%.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 16 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a +5.61% 3-day Advance, the price is estimated to grow further. Considering data from situations where HOOD advanced for three days, in 259 of 316 cases, the price rose further within the following month. The odds of a continued upward trend are 82%.
HOOD may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 41 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is 62 (best 1 - 100 worst), indicating steady price growth. HOOD’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 64 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 87, placing this stock slightly better than average.
The Tickeron PE Growth Rating for this company is 87 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of 97 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (8.805) is normal, around the industry mean (3.536). P/E Ratio (40.190) is within average values for comparable stocks, (8.560). HOOD's Projected Growth (PEG Ratio) (2.033) is slightly higher than the industry average of (0.809). Dividend Yield (0.000) settles around the average of (7.430) among similar stocks. P/S Ratio (19.455) is also within normal values, averaging (16.763).
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