Robinhood Markets, Inc. Class A (NASDAQ:HOOD) reported record revenue for the third quarter of 2026, but lower profits and a decline in crypto sales led to a share price drop, analyst target cuts, and regulatory action in Ohio. The company posted revenue of $1.42 billion, up 12% year over year, but net income fell 14% to $476 million. Crypto revenue dropped 55% to $120 million, contributing to the share slide.
Analysts responded to the earnings report by lowering their price targets for Robinhood. Wells Fargo cited lower take rates, while Truist pointed to weaker equity, options, and crypto volumes. Needham cut its target to $116 from $126, maintaining a Buy rating, and Scotiabank lowered its target to $124 from $136. Despite the cuts, StoneX kept a Buy rating and a $170 target, calling the post-earnings drop excessive.
On the regulatory front, Ohio ordered Robinhood to halt sports event contracts, with the company agreeing to stop offering new contracts in the state by November 2, 2026, as related appeals proceed. Meanwhile, Robinhood expanded its international footprint, launching crypto trading in the UK and securing authorization in Dubai for trading and custody, with products planned for 2027. The company also partnered with Ripple on its RLUSD stablecoin.
In other developments, Robinhood agreed to add event contracts from Crypto.com’s OG prediction market to its app and take minority stakes in both firms. Additionally, Robinhood was selected as the first partner for Uniswap Labs’ open-source TJAR fee tool. Cathie Wood’s ARK Investment Management bought about $9.1 million of Robinhood shares on Wednesday across three exchange-traded funds.
Robinhood also opened its Earn feature to all eligible users, offering USDG lending via a Morpho vault on Robinhood Chain. Users can earn interest and rewards, with withdrawals depending on vault liquidity.