Robinhood Revenue Hits Record as Crypto Trading Weakens

| coingeek.com
Robinhood reported record third-quarter revenue of $1.42 billion, up 12% year on year, as prediction markets, options and equities offset weaker crypto trading. Crypto revenue was $120 million, down 55% from a year earlier, although it rose 20% quarter on quarter. Robinhood Chain contributed $26 million in its first quarter on mainnet; excluding the new Ethereum Layer 2 network, crypto revenue would have fallen 6% quarter on quarter. The chain, built with Arbitrum technology, processed more than $80 billion in decentralised exchange volume and generated over $50 million in fees. Traditional crypto transaction revenue was $94 million, down 6% quarter on quarter despite a 23% rise in trading volume to about $49.8 billion. Prediction-market event contracts generated $173 million, surpassing crypto revenue. Robinhood’s net income fell 14%; the latest report put it at $415 million, partly reflecting a $67 million unrealised loss on its Ventures Fund I portfolio. The company also agreed to use Ripple’s RLUSD for international settlement, treasury operations, trading and financing. Early fourth-quarter average daily volumes across equities, options and crypto were about 5% below the strong third-quarter pace. The results show Robinhood crypto revenue increasingly depends on new infrastructure while its traditional crypto trading business remains under pressure.
Neutral
The company results point to mixed conditions rather than a clear price catalyst for any cryptocurrency. Robinhood’s crypto revenue fell sharply year on year, but the new chain’s activity and fee generation suggest growing use of Ethereum-based infrastructure. That may support longer-term ecosystem adoption, though the figures do not establish direct demand for ETH or ARB tokens. The RLUSD agreement may broaden the stablecoin’s utility, but settlement adoption alone does not necessarily translate into near-term price appreciation, particularly for a stablecoin designed to track the US dollar. In the short term, traders may focus on weak year-on-year crypto activity and the broader shift in Robinhood’s revenue mix. Over the longer term, chain usage and stablecoin integrations could be constructive for underlying infrastructure, but evidence of sustained token demand would be needed to change the neutral assessment.