Key Takeaways
- • Robinhood's crypto revenue fell 55% in Q3 to $120 million, while the company reported record quarterly revenue of $1.42 billion, up 12% year over year, according to the earnings call and release.
- • Robinhood Banking has drawn nearly $5 billion in deposits from more than 350,000 funded customers, with about 40% signed up for direct deposit.
- • Robinhood Banking became the largest destination by dollars for money withdrawn from Robinhood brokerage accounts during the quarter, per CEO Vlad Tenev.
- • Customers have put more than $250 million into Agentic Trading Accounts, with roughly 200,000 accounts opened and over $1.6 billion in trading volume to date.
- • Robinhood lowered the upper end of its full-year adjusted operating expense and share-based compensation forecast by $25 million, to $2.675 billion to $2.75 billion.
Summary
Robinhood's cryptocurrency revenue fell 55% in the third quarter, but much of the discussion on the company's earnings call on Tuesday, October 27, centered on expanding its banking, payments and AI-driven trading products. CEO Vlad Tenev described a strategy to make Robinhood customers' primary financial home, with banking and credit as key drivers of Robinhood Gold, the company's paid membership program. Both products remain in limited release.
According to the company's earnings release, Robinhood Banking has attracted nearly $5 billion in deposits from more than 350,000 funded customers, with about 40% having signed up for direct deposit. During the Q&A, Tenev said Robinhood Banking became the largest destination, by dollars, for money customers withdrew from their brokerage accounts during the quarter, meaning funds that might previously have moved to a large bank are staying within the platform. Chief Financial Officer Shiv Verma said banking currently requires a Robinhood brokerage account, and that independent sign-ups would create an opportunity to market banking more broadly.
Tenev demonstrated a peer-to-peer payment feature by sending $5 to an investor relations colleague via text. Recipients can accept funds using Apple Pay or Google Pay without opening a Robinhood Banking account. The feature remains in limited release, with a broader rollout expected in the coming weeks. Tenev challenged the incumbent bank payment service Zelle directly, and, responding to Morgan Stanley analyst Michael Cyprys, said the company would prioritize existing customers, with each payment potentially introducing a new recipient to Robinhood.
Robinhood is also expanding AI capabilities. Tenev said customers can now use agentic trading directly within the Robinhood app without an outside AI tool, with the company moving toward more autonomous execution. The earnings release reported approximately 200,000 customers had opened Agentic Trading Accounts, generating more than $1.6 billion in trading volume, and Tenev said customers have put more than $250 million into these accounts. Management did not disclose a separate AI spending figure.
For the quarter, Robinhood reported record revenue of $1.42 billion, up 12% from a year earlier. Options revenue rose 31% to $399 million, and event-contract revenue increased more than sixfold to $173 million. Net income declined 14% to $476 million, or 51 cents per diluted share. Gold subscriptions rose 34% to 5.2 million. The company lowered the upper end of its full-year adjusted operating expense and share-based compensation forecast by $25 million, to a range of $2.675 billion to $2.75 billion.
According to the company's earnings release, Robinhood Banking has attracted nearly $5 billion in deposits from more than 350,000 funded customers, with about 40% having signed up for direct deposit. During the Q&A, Tenev said Robinhood Banking became the largest destination, by dollars, for money customers withdrew from their brokerage accounts during the quarter, meaning funds that might previously have moved to a large bank are staying within the platform. Chief Financial Officer Shiv Verma said banking currently requires a Robinhood brokerage account, and that independent sign-ups would create an opportunity to market banking more broadly.
Tenev demonstrated a peer-to-peer payment feature by sending $5 to an investor relations colleague via text. Recipients can accept funds using Apple Pay or Google Pay without opening a Robinhood Banking account. The feature remains in limited release, with a broader rollout expected in the coming weeks. Tenev challenged the incumbent bank payment service Zelle directly, and, responding to Morgan Stanley analyst Michael Cyprys, said the company would prioritize existing customers, with each payment potentially introducing a new recipient to Robinhood.
Robinhood is also expanding AI capabilities. Tenev said customers can now use agentic trading directly within the Robinhood app without an outside AI tool, with the company moving toward more autonomous execution. The earnings release reported approximately 200,000 customers had opened Agentic Trading Accounts, generating more than $1.6 billion in trading volume, and Tenev said customers have put more than $250 million into these accounts. Management did not disclose a separate AI spending figure.
For the quarter, Robinhood reported record revenue of $1.42 billion, up 12% from a year earlier. Options revenue rose 31% to $399 million, and event-contract revenue increased more than sixfold to $173 million. Net income declined 14% to $476 million, or 51 cents per diluted share. Gold subscriptions rose 34% to 5.2 million. The company lowered the upper end of its full-year adjusted operating expense and share-based compensation forecast by $25 million, to a range of $2.675 billion to $2.75 billion.
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