Robinhood’s Crypto Business Rebounds From Q2 While Prediction Markets Stay in the Lead

Robinhood’s crypto revenue reached $120 million in the third quarter, a 20% gain over the previous three months, even though it is still 55% below the same period a year ago, when markets were near bull cycle highs. A big part of the lift came from its new blockchain. Strip that out, and transaction revenue slipped 6% from the second quarter to $94 million. Trading activity picked up too, rising 23% to $49.8 billion, split between $20.6 billion on the Robinhood app and $29.2 billion on Bitsamp, the exchange the company bought last year.

Robinhood Chain Results After Its First Quarter on Mainnet

The network went live on July 1 and earned $26 million in its debut quarter. Built as a layer 2 on Arbitrum, it processed more than $80 billion in decentralized exchange volume and generated over $50 million in fees.

Prediction Markets Revenue Outpaces Crypto

Event contracts brought in $173 million, up 11% from the second quarter and more than six times last year’s level. About $28 million of that came from Rothera, the exchange it runs jointly with Susquehanna. For another quarter, this line earned more than crypto.

Robinhood Profit, Revenue and Stock Reaction

Total net revenue grew 12% from a year earlier to a record $1.42 billion, while net income fell 14% to $476 million. Shares dropped 5% in after hours trading to $89.22, which leaves the stock down roughly 22% so far this year.