Robinhood posts US$1.27 billion revenue in Q3
Trading platform Robinhood Markets has reported third quarter revenues of US$1.27 billion, a 100% increase from the same period last year driven by trading activity in cryptocurrencies, options, and equities.
Net income rose to US$556 million, representing a year-on-year increase of 271%, while diluted earnings per share reached US$0.61, up 259% year-on-year.
Transaction-based revenue grew 129% to US$730 million, including cryptocurrencies at US$268 million (up 300%), options at US$304 million (up 50%), and equities at US$86 million (up 132%).
Net interest income escalated 66% to US$456 million, while other revenue doubled to US$88 million. Adjusted earnings before interest, taxes, depreciation and amortization reached US$742 million, rising 177%.
Robinhood Chairman and Chief Executive Vlad Tenev said, “Our team’s relentless product velocity drove record business results in Q3 and we’re not slowing down – Prediction Markets are growing rapidly, Robinhood Banking is starting to roll out, and Robinhood Ventures is coming.”
Chief Financial Officer Jason Warnick added, “Q3 was another strong quarter of profitable growth, and we continued to diversify our business, adding two more business lines – Prediction Markets and Bitstamp – that are generating approximately $100 million or more in annualized revenues.”
The company reported record net deposits of US$20.4 billion and total platform assets of US$333 billion, up 119% year-on-year.
Warnick announced plans to retire in 2026, with Finance Executive Shiv Verma to succeed him in early 2026.
This comes after Robinhood’s Q2 revenues beat Wall Street estimates back in August.
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The Backstory
Why Robinhood’s surge matters beyond trading
Robinhood’s latest quarter shows more than a rebound in retail trading. The company doubled revenue and posted a sharp profit increase, powered by crypto, options and equities, while touting new businesses that push it closer to real-money entertainment. That matters to sportsbooks, data suppliers and regulators because the same forces expanding retail finance — low-friction mobile distribution, gamified product design, and cross-sell — are reshaping where and how consumers wager and invest. A platform with hundreds of billions in customer assets does not need to capture much of that overlap to change the competitive map.
The company’s executives highlighted “Prediction Markets,” crypto payments and a banking rollout as growth lanes alongside the acquisition of a crypto exchange. Those initiatives sit at the edge where trading behavior and betting behavior converge. The timing coincides with a maturing online gambling market in the U.S. and abroad that is tilting from pure customer acquisition to lifetime value and operating leverage.
The new pipes: prediction markets and crypto rails
Robinhood’s push into prediction markets puts it adjacent to sports and event wagering without assuming the full regulatory and tax load of sportsbooks. The strategy hinges on product velocity and cost-effective user conversion inside an existing app with high engagement. A similar logic is at work in crypto. Owning more of the wallet and transaction stack can compress costs, add yield on balances and improve funding speed, which matters for any real-money product with frequent deposits and withdrawals.
The approach echoes moves by operators that seek new verticals to deepen engagement. DraftKings, for instance, reported fourth-quarter revenue of $1.4 billion and a 36% jump in average monthly players, aided by the Jackpocket online lottery deal, though average revenue per user fell in part due to the lottery mix. Read the details in DraftKings reports $1.4 billion in revenue for fourth quarter. For Robinhood, prediction markets play a similar role as an on-ramp that broadens the funnel and cross-sell canvas while exerting pressure on unit economics that must be offset by scale and product breadth.
Operators seek scale as unit economics tighten
Profit pools in U.S. betting are growing, but costs do not stand still. Flutter Entertainment, parent of FanDuel, lifted second-quarter revenue 16% to $4.2 billion on an 11% rise in average monthly players, yet profit plunged on a noncash charge. FanDuel’s domestic iGaming revenue climbed 42% while sports betting rose 11%, and U.S. cash flow hit $400 million on favorable results. The company raised full-year revenue and cash flow guidance. See FanDuel parent Flutter posts more revenue, much less profit in second quarter.
Rush Street Interactive posted a 31% revenue surge to $254.2 million in the fourth quarter and a modest profit as monthly active users grew in North America and even faster in Latin America. Management guided to as much as $1.1 billion of 2025 revenue and stronger cash flow, underscoring that operating leverage is finally coming through at mid-tier scale. The company’s geographic mix shows the importance of diversified markets and cost discipline as promotions creep higher. The details are in Rush Street Interactive posts revenue surge and modest profit.
Against that backdrop, Robinhood’s record deposits and asset base create a different kind of scale. If it can convert even a sliver of trading users into prediction market participants, it can sidestep the heaviest acquisition costs that legacy operators face. That is the competitive threat — and opportunity — for firms that lack a daily finance relationship with customers. The counterbalance is regulatory complexity and product suitability, particularly as prediction markets attract scrutiny over consumer protections and market integrity.
Content and data set the speed limit
The growth of betting and adjacent products ultimately runs on licensed content, official data and latency-sensitive distribution. Sportradar’s “beat and raise” quarter, with revenue up 14% overall and 45% in the U.S., speaks to demand for data feeds, integrity services and trading tools that underpin live betting and micro-markets. The company nudged up 2025 earnings guidance and outpaced expectations on cash flow, even as U.S. revenue remained just 28% of the total. For more, see Sportradar posts ‘solid’ second quarter, Jefferies analyst says.
For Robinhood, which thrives on real-time experiences, owning or integrating superior data will influence product differentiation. Prediction markets depend on timely, trustworthy settlement data and liquidity. If Robinhood leans into event markets tied to sports, entertainment or elections, the economics will reflect data licensing, risk tech and the ability to onboard counterparties quickly. That echoes the path sportsbooks took as in-play wagering became a core driver of handle and hold.
Regulatory currents reshape addressable markets
Policy can accelerate or stall strategies at the intersection of finance and betting. The Philippines offers a case study. The regulator PAGCOR reported a record $1.92 billion in 2024 revenue as domestic online gaming, or e-games, surged and contributed half of industry revenue. The windfall allowed higher remittances to the state and highlighted how digital channels can multiply a market once infrastructure and rules are in place. Details are in PAGCOR reports record $1.92 billion revenue in 2024.
In the U.S., rules vary by state and by product. Sportsbooks navigate tax rates, promotional caps and advertising restrictions. Prediction markets sit in a grayer zone that may tighten as volumes climb and as lines between entertainment, wagering and financial speculation blur. Internationally, operators are stitching together licenses across Europe and Latin America, as seen in Flutter’s integration of SNAI in Italy and NSX in Brazil, to hedge regulatory risk and capture growth. Robinhood’s cross-border crypto footprint adds another regulatory stack that can cut both ways — improving funding agility yet increasing compliance complexity.
What the next quarters will test
Robinhood’s case now turns on execution. Three questions loom. First, can prediction markets scale engagement without cannibalizing core trading or inviting costly scrutiny. Second, do crypto and banking integrations lower funding friction and boost margin enough to matter at the consolidated level. Third, can the company translate consumer finance scale into competitive advantage against operators that already monetize live betting at high frequency.
The rest of the ecosystem is moving. DraftKings is pushing live betting and cross-sell while absorbing lower ARPU from lottery. Flutter is leaning on U.S. iGaming growth and a deeper international base to power cash flow. Rush Street is proving mid-market operating leverage as it expands in Latin America. Sportradar is incrementally raising guidance as data demand accelerates. Regulators are tilting markets toward digital, as PAGCOR’s results show, but also tightening oversight.
For investors and rivals, the stakes are clear. If Robinhood can add a sustainable, compliant prediction layer to its trading flywheel, it will not only diversify revenue but also reset customer acquisition economics across the category. If it stumbles, incumbents with sharper unit economics and entrenched licenses will keep the advantage as the industry’s growth shifts from land grabs to operational discipline.
