Robinhood Markets (NASDAQ:HOOD) reported record third-quarter revenue and adjusted EBITDA as trading activity, net deposits and adoption of newer products continued to grow, while management highlighted plans to expand banking, prediction markets, tokenized assets and international operations.
Revenue rose 12% year over year to a record $1.4 billion in the third quarter, Chairman and CEO Vlad Tenev said during the company’s earnings call. Adjusted EBITDA increased 9% to a record $808 million, producing a 57% adjusted EBITDA margin. CFO Shiv Verma said earnings per share were $0.51, including a $0.07 mark-to-market impact on investments, while newly introduced adjusted EPS was $0.60.
“The core business is firing on all cylinders,” Verma said, pointing to nearly $400 billion in platform assets and records in equities, options, event contracts and margin. He said transaction revenue benefited from roughly 50% year-over-year growth in equities, options and margin trading activity, alongside market-share gains. Event-contract activity increased sevenfold from a year earlier.
Product Expansion Targets Active Traders
Tenev said Robinhood introduced 17 products and services at its HOOD Summit event, including expanded agentic-trading capabilities, perpetual futures, planned earnings contracts for prediction markets and planned 24/7 equity trading later this year.
The company’s agentic offerings now include in-app trading capabilities and connectivity to Robinhood Legend through its MCP connectors. Tenev said customers have moved more than $250 million into agentic accounts and that usage and trading adoption have followed an accelerating curve.
Robinhood also became the first U.S. broker to offer what Tenev called “true perpetual futures,” powered by its Bitstamp global derivatives exchange and featuring continuous 15-minute settlement. He said perpetual futures represent a large global market and cited more than $1 billion of daily decentralized-finance perpetuals volume recently seen on Robinhood Chain.
On prediction markets, Verma said Robinhood’s Rothera exchange surpassed $100 million in annualized revenue in its first full quarter of operation. The company is adding contracts tied to earnings per share, revenue and company-specific KPIs, according to Tenev. Robinhood said its non-sports prediction-market activity accounted for about 30% of volume during the quarter, up from 15% in the preceding quarter.
Robinhood also announced partnerships with Crypto.com and OG.com. Verma said Robinhood received an initial 1% equity stake in the two companies without a cash outlay and could earn up to 10% ownership depending on future partnership activity. Rothera is expected to remain Robinhood’s primary exchange for prediction markets, while Crypto.com and OG.com will serve as its main secondary venue, he said.
Banking and Gold Adoption
The company continued to build out its financial-services offerings beyond trading. Tenev said Robinhood Gold reached 5 million subscribers, up more than 30% year over year, and represented about an 18% adoption rate across the customer base. He said more than 40% of customers who joined Robinhood during the quarter adopted Gold.
Management sees banking and credit as potential drivers of further Gold adoption. Tenev said Robinhood Banking became the top destination, by dollars, for brokerage customers withdrawing funds from Robinhood during the quarter, even though the product remains in limited release.
During the call, Tenev demonstrated a peer-to-peer payments feature that allows users to send money through text messages. Recipients can accept funds through Apple Pay or Google Pay without maintaining a Robinhood Banking account. He said Robinhood expects to broaden the feature’s rollout in coming weeks.
Robinhood Strategies, the company’s passive digital-advice product, has surpassed $2 billion in assets, Tenev said. The product includes Smart Income, a tool designed to help users set time horizons and risk preferences for investments.
Chain Activity and Global Growth
Robinhood Chain, launched July 1, generated more than $100 billion in decentralized exchange volume and over $50 million in chain fees during its first quarter, Tenev said. Verma said that equated to approximately $25 million of net revenue after revenue sharing with Arbitrum, or roughly $100 million annualized.
Management said the immediate priority for the chain is user experience, developer adoption, total value locked and growth in tokenized-stock activity rather than maximizing fees. Verma said normalized monetization is likely to be “a couple basis points” of notional value.
The company is also expanding geographically. Tenev said Robinhood received authorization from the Dubai Financial Services Authority to launch in the region and received in-principle approval from the Monetary Authority of Singapore for expansion into Singapore. The company is also live in Canada through its WonderFi acquisition, according to management, while the U.K. offering now combines crypto and brokerage services.
Net Deposits, Expenses and Fourth-Quarter Start
Robinhood recorded $16 billion of net deposits in the third quarter. Verma said October net deposits exceeded $13 billion, including $6 billion associated with a Dell family gift to Trump Accounts, bringing year-to-date net deposits above $68 billion. The company said it had already exceeded its annual goal of 20% net-deposit growth with time remaining in the year.
Management said the U.S. Treasury had opened Trump Accounts for nearly 70 million eligible children, while the Michael and Susan Dell Foundation provided $250 investments for 25 million children. Robinhood expects additional spending on the initiative, including work with employers and donors.
Adjusted operating expenses, including stock-based compensation, totaled $664 million in the quarter. Robinhood reduced the top end of its full-year adjusted operating expense outlook by $25 million and now expects between $2.675 billion and $2.75 billion. Verma said the company expects roughly $100 million of full-year investment in Trump Accounts.
Looking into the fourth quarter, average daily volumes in equities, options and crypto were about 5% below the record third-quarter level through the early part of October, while event-contract average daily volumes were up about 10%, Verma said. He added that tighter spreads had modestly pressured early-quarter take rates in some categories.
About Robinhood Markets (NASDAQ:HOOD)
Robinhood Markets, Inc is a financial services company that operates a digital brokerage platform. Founded in 2013 by Vlad Tenev and Baiju Bhatt, the company became known for offering commission-free trading and a mobile-first investing experience designed to broaden access to financial markets.
Through its platform, Robinhood provides brokerage services for stocks, exchange-traded funds, options and other investments. Its offerings also include cryptocurrency trading, individual retirement accounts, margin investing, cash management services and Robinhood Gold, a subscription-based product that provides additional features and benefits.
