# Robinhood's New Chain Lifts Crypto Revenue Despite Q3 Profit Miss

*Author: William M. Peaster*
*Published: Oct 28, 2026*
*Source: https://www.bankless.com/read/news/robinhoods-new-chain-lifts-crypto-revenue-despite-q3-profit-miss*

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Robinhood’s crypto business finally bounced back last quarter, and its own Ethereum Layer 2 deserves much of the credit. 

 Per the brokerage’s [Q3 2026 results](https://www.sec.gov/Archives/edgar/data/1783879/000178387926000164/q32026robinhoodexhibit991.htm), released Tuesday (Oct. 27th), crypto revenue came in at $120M, down 55% YoY but up 20% from Q2’s $100M as Robinhood Chain wrapped its debut quarter on mainnet. 

> [ — (@)
> ](https://twitter.com/RobinhoodApp/status/2115175828266877186)

# **What’s the Scoop?**

- **The chain’s haul:** Robinhood Chain handled more than $80B in DEX trading and threw off upward of $50M in fees last quarter, putting it among the top five chains by both revenue and volume. On the earnings call, CFO Shiv Verma put Robinhood’s net take at about $25M, or roughly $100M annualized. 

- **Earn’s tradeoff:** Verma blamed a thinner crypto take rate on Robinhood Earn, the firm’s USDG yield product built on Morpho, which he said holds “over $500 million” yet pays Robinhood less than its usual trading business. Volume played a role, too. Crypto notional volume sank 38% YoY to $50B, and Bitstamp now handles more of it ($29B) than the Robinhood app itself ($21B). 

- **Prediction markets lead:** Event contracts brought in $173M, more than 6x their year-ago total, beating crypto for a second quarter in a row. Verma told Reuters that prediction markets are “almost a $500-million-a-year business already.” 

- **Mixed bag overall:** Revenue hit a record $1.42B, up 12% YoY, but Robinhood’s $0.51 in diluted EPS fell short of the ~$0.55-$0.56 analyst consensus, weighed down in part by $67M in unrealized losses tied to Robinhood Ventures Fund I. HOOD shares slid after hours and were still trading lower Wednesday morning. 

- **Perspective:** Robinhood Chain is now a real revenue line, but maybe not a steady one just yet. Q3’s fees got a boost from late-summer memecoin mania, and by late August the L2 was [out-earning every major chain but Canton](https://www.bankless.com/read/news/robinhood-chain-becomes-cryptos-top-chain-by-organic-revenue) on daily organic revenue. Next up, Coinbase reports Thursday (Oct. 29th), which should show whether the retail spot slump is Robinhood’s problem or the whole industry’s.
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