Robinhood Profit Quadruples as Crypto Revenue Surges 339%

Profit Jumps on Retail Momentum

Robinhood Markets (HOOD.O) reported quarterly earnings that blew past Wall Street expectations as retail traders piled into equities, options, and crypto. Third-quarter net income almost quadrupled to $556 million, or 61 cents per share, compared with analyst estimates of $0.53 per share, according to LSEG data. Total revenue rose to $1.27 billion, ahead of forecasts for $1.21 billion.

“Our customers tend to be younger and have long time horizons. They’re naturally drawn to growth names, but they are also being pretty prudent,” said Chief Financial Officer Jason Warnick in an interview with Reuters. Warnick, a former Amazon executive, will retire in 2026 later than more than seven years at the company.

The Menlo Park-based broker raised its full-year guidance for 2025 adjusted operating expenses to about $2.28 billion, up from an earlier forecast of up to $2.25 billion. Shares fell roughly 1% in extended trading but remain up nahead 270% year to date.

Investor Takeaway

Crypto and Options Drive Growth

Transaction-based revenue more than doubled to $730 million in the quarter, led by surging activity in digital assets. Crypto trading revenue climbed 339% year-over-year to $268 million, driven by roughly $80 billion in trading volume. Equities revenue increased 132%, while options rose 50%.

“Q3 was another strong quarter of profitable growth,” Warnick said. “We continued to diversify our business, adding two more business lines — Prediction Markets and Bitstamp — that are generating about $100 million or more in annualized revenues.”

The addition of Bitstamp, one of the world’s oldest crypto platforms, expands Robinhood’s reach into more than 50 countries and strengthens its compliance footprint across Europe and Asia. The company also in March, allowing users to trade contracts tied to real-world events — a category it expects to grow rapidly in 2026.

“Pandemic Traders Who Never Left”

Robinhood’s resurgence underscores how pandemic-era retail traders have remained a dominant force in U.S. markets. Analysts say the firm’s customer base of active traders has proved more resilient than expected, continuing to drive volumes in speculative assets like crypto and small-cap equities even as broader markets cooled.

“This company’s turning into a fintech juggernaut,” said David Bartosiak, stock strategist at Zacks Investment Research. “They’re firing on every cylinder imaginable.”

Warnick said October was already showing across equities, options, and futures, with margin balances hitting new highs. The firm’s growing exposure to derivatives and prediction markets adds new revenue streams but also puts it under closer regulatory scrutiny as U.S. watchdogs weigh oversight of .

Investor Takeaway

Leadership Changes Ahead

Warnick’s retirement marks a key transition for the brokerage. He will step down from the CFO role in the first quarter of 2026 and serve as a strategic adviser until September that year. Robinhood named longtime executive Shiv Verma as his successor.

Verma told Reuters he is optimistic about the company’s expansion into prediction markets, calling it “a new asset class” that could attract both . Robinhood’s market capitalization now stands at $126 billion, ahead of rival Coinbase (COIN.O), which reported its own earnings beat last week.