Robinhood

<a href="https://www.thestreet.com/crypto/markets/jim-cramer-issues-bullish-call-on-robinhood-after-morgan-stanley-upgrade" rel="noopener noreferrer nofollow">Robinhood Markets</a> (Nasdaq: HOOD), the brokerage platform popular for offering equities, cryptocurrencies, tokenized stocks, and prediction markets, <a href="https://investors.robinhood.com/news-releases/news-release-details/robinhood-reports-third-quarter-2026-results" rel="noopener noreferrer nofollow">reported</a> the financial results for the third quarter of 2026 on Oct. 27.
The company posted a&nbsp;diluted&nbsp;earnings per share (EPS) of $0.51.
It missed analysts' expectations of $0.55, <a href="https://www.reuters.com/business/robinhood-quarterly-profit-falls-softer-crypto-activity-outweighs-robust-trading-2026-10-27/" rel="noopener noreferrer nofollow">according</a> to estimates ​compiled by LSEG.
Net income fell&nbsp;14% year-over-year (YoY) to&nbsp;$476 million during Q3 2026. Total net revenues grew 12% from a year ago to $1.42 billion.
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 Robinhood Builds Its Own Blockchain to Power Tokenized Markets (2:37)
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The transaction-based revenues grew 19% to&nbsp;$867 million during the last quarter:
<ul>
 <li>Prediction contracts revenue rose over six times YoY to $173 million.</li>
 <li>Options revenue rose 31% YoY to $399 million.</li>
 <li>Equities revenue rose 41% YoY to $121 million.</li>
 <li>Crypto transaction revenue fell 55% YoY to $120 million. However, it posted a jump of 20% from the last quarter.</li>
</ul>
Moreover, the crypto notional trading volumes&nbsp;fell 38% YoY to&nbsp;$50 billion.&nbsp;But prediction contract trading&nbsp;grew more than sevenfold from a year ago to a record 16.4 billion.
The company's total operating expenses increased 16% YoY to&nbsp;$739 million.
The HOOD stock was trading at $91.06 at the time of writing, down 3.7% on the day.
<h3 id="popular-on-thestreet-roundtable">Popular on TheStreet Roundtable:</h3>
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<h2 id="tokenized-stocks-haunt-robinhood-s-earnings-call">Tokenized stocks haunt Robinhood's earnings call</h2>
Robinhood is among the top brokerages that offers tokenized versions of U.S. stocks to traders abroad.
These tokens offer traders from outside the U.S. indirect exposure to the American stock market. But unlike the original stocks, these tokens don't offer shareholder rights such as ownership, voting, etc.
This is why several companies are not pleased with platforms like Robinhood offering the tokenized versions of their stocks.
Last month, AMC Entertainment (NYSE: AMC) CEO Adam Aron&nbsp;<a href="https://www.thestreet.com/crypto/markets/robinhood-stock-slips-on-amc-ceos-legal-threat" rel="noopener noreferrer nofollow">slammed</a>&nbsp;Robinhood for offering the AMC stock token&nbsp;without registering under U.S. securities laws. He even threatened legal action if it didn't stop offering the product.
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 Vlad Tenev, chief executive officer of Robinhood Markets Inc. 
 <a href="https://www.gettyimages.co.uk/detail/news-photo/vlad-tenev-chief-executive-officer-of-robinhood-markets-inc-news-photo/2216803003?adppopup=true" rel="noopener noreferrer nofollow">Getty Images</a>
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Robinhood CEO Vlad Tenev said the company stands behind stock tokens and it remained a topic of intense discussion during the <a href="https://www.fool.com/earnings/call-transcripts/2026/10/28/robinhood-hood-q3-2026-earnings-call-transcript/" rel="noopener noreferrer nofollow">earnings call</a> yesterday.
An analyst asked if the company is planning to bring stock tokens onshore to the U.S. following the&nbsp;Securities and Exchange Commission's (SEC) <a href="https://www.sec.gov/newsroom/press-releases/2026-90-sec-issues-innovation-exemption-facilitate-trading-tokenized-nms-stock-request-comment" rel="noopener noreferrer nofollow">innovation exemption</a> published last month. The exemption lets exchanges offer tokenized U.S. stocks without registering as exchanges.
Tenev called the SEC's exemption a "really positive step" but added that more needs to be done. Lingering uncertainty among customers, he said, &nbsp;is an "impediment" to tokenizing "serious assets."
<blockquote>
 He added, "So I still think some rule-making or legislation is going to be necessary, even though, of course, it's a positive step, and we hope to have more to share on our own U.S. tokenization plans in the near future."
</blockquote>
<h3 id="more-on-robinhood-amc-battle">More on Robinhood-AMC battle:</h3>
<ul>
 <li><a href="https://www.thestreet.com/crypto/markets/robinhood-stock-slips-on-amc-ceos-legal-threat" rel="noopener noreferrer nofollow">Robinhood sends harsh response to AMC CEO's legal threat</a></li>
 <li><a href="https://www.thestreet.com/crypto/markets/man-turns-robinhood-amc-feud-into-2-million-gain-in-12-hours" rel="noopener noreferrer nofollow">Man turns Robinhood-AMC feud into $2 million gain in 12 hours</a></li>
 <li><a href="https://www.thestreet.com/crypto/business/amcs-ceo-warns-major-exchange-to-stop-selling-fake-versions-of-his-stock" rel="noopener noreferrer nofollow">AMC's CEO warns major exchange to stop selling 'fake' versions of his stock</a></li>
</ul>
<h2 id="tenev-reveals-robinhood-s-dark-horse">Tenev reveals Robinhood's 'dark horse'</h2>
During the earnings call, Tenev revealed that&nbsp;<a href="https://robinhood.com/us/en/support/articles/about-strategies/" rel="noopener noreferrer nofollow">Robinhood Strategies</a> is the company's "dark horse" which takes care of over&nbsp;$2 billion in assets.
Robinhood Strategies provides tax-aware investment advisory services to U.S. clients, building custom portfolios based on personal financial goals, time horizon, and risk tolerance.
Tenev highlighted the product's&nbsp;<a href="https://robinhood.com/us/en/support/articles/smart-income/" rel="noopener noreferrer nofollow">Smart Income</a> feature in particular. It is a&nbsp;set of income-focused portfolios for&nbsp;those who want their idle money to generate returns without taking on stock market risks.
Expert-managed, Smart Income pays monthly dividends which can be&nbsp;reinvested over time.
Referring to it as a "complete set it and forget it product," Tenev said the team at Strategies has "ambitious plans" and the "dark horse" could "surprise" people in the coming year.
<h2 id="the-roundtable-100">The Roundtable 100</h2>
If you follow our market coverage, don’t miss the <a href="https://roundtable100.com/tab/rankings" rel="noopener noreferrer nofollow">Roundtable 100</a>. Updated every Friday, it's a power ranking of the 100 most investable tech stocks, including digital assets. Check out the latest <a href="https://roundtable100.com/" rel="noopener noreferrer nofollow">RTB 100</a> rankings at <a rel="noopener noreferrer nofollow">roundtable100.com</a>
<a href="https://www.thestreet.com/crypto/markets/roundtable-100-analysts-boost-blocks-ranking-ahead-of-q3-earnings" rel="noopener noreferrer nofollow">Related: Roundtable 100 analysts boost Block's ranking ahead of Q3 earnings</a>

Robinhood reveals its 'dark horse' as stock token haunts earnings call

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