Robinhood Q3 Revenue Rises 12 Percent to $1.42 Billion

Robinhood reported third-quarter revenue of $1.42 billion for the period ending September 30, marking a 12 percent increase. Despite the growth, the company's shares declined in after-hours trading because transaction-based revenue of $867 million failed to meet Wall Street expectations.

Growth was driven by a 31 percent increase in options revenue and a surge of more than 500 percent in event contracts revenue. These gains were offset by a significant slump in cryptocurrency revenue, which fell 55 percent to $120 million. Net income for the quarter decreased to $468 million, or 51 cents per share, down from $556 million in the previous year.

The company reported $15.7 billion in net deposits during the quarter. Robinhood is currently diversifying its brokerage app into a broader financial services platform that includes subscriptions and wealth management.