Robinhood records $1.424 billion Q3 revenue and agrees to halt new Ohio sports event contracts
Robinhood reported record third-quarter revenue of $1.424 billion, driven by growth in options, equities, and event contracts. The results included a 55 percent decline in cryptocurrency revenue. The company also agreed to stop offering new sports-related event contracts in Ohio. Robinhood Gold subscribers reached 5.2 million. Earnings pressure persisted despite the revenue record. The company enters the fourth quarter with a lower cost ceiling, suggesting operating leverage as the business scales.
The Ohio halt lands on Robinhood's fastest-growing revenue line at the worst possible moment. The $173 million event-contract run rate now faces a state-by-state geofence strategy that shrinks the addressable market. Unlike competitors with direct CFTC designations, Robinhood routes volume through partner infrastructure including the Rothera joint venture and Kalshi. It holds no designated contract market license of its own.
Any partner outage or additional state freeze forces instant volume migration with no fallback exchange. The August dip proved retail traders abandon interrupted platforms within days. Bernstein's $1.7 billion 2028 forecast assumes partnership resilience and uninterrupted state access that Robinhood cannot guarantee. Competitors with direct CFTC registration can now pitch stability to users who felt that disruption.
Ohio to the state-level pressure on event-contract platforms already targeted by attorneys general in Utah and other jurisdictions, as Robinhood joins Kalshi in defending market access state by state rather than behind a single federal shield.