Ondo’s tokenized Robinhood stock debuts as HOOD drops 5% after earnings miss

Robinhood shares dropped nearly 4% in after-hours trading Tuesday after the company reported third-quarter earnings below Wall Street expectations, with cryptocurrency revenue plunging 55% despite record overall revenue.

The brokerage reported revenue of $1.42 billion for the quarter ended September 30, up 12% year over year but below analysts’ expectations of approximately $1.44 billion.

Diluted earnings per share declined 16% to $0.51, missing consensus estimates of about $0.56, while net income fell 14% to $476 million.

Robinhood stock (HOOD) closed regular trading at $94.56, up 1.85%, before retreating to approximately $89.93 in after-hours trading, a decline of about 4%, according to Yahoo Finance data.

The decline also puts tokenized versions of Robinhood shares in focus, including xStocks’ HOODx and Ondo Global Markets’ HOODon, which provide blockchain-based exposure to the brokerage’s stock.

Ondo launched HOODon on Robinhood Chain earlier Tuesday alongside 14 other tokenized stocks and ETFs, expanding its products into Robinhood’s Ethereum layer 2 ecosystem.

Robinhood’s quarterly results included $67 million in unrealized losses, primarily related to valuation adjustments for Robinhood Ventures Fund I.

Excluding certain items, the company reported adjusted earnings of $0.60 per share, down 3% year over year. The metric was introduced as a new non-GAAP measure this quarter.

Robinhood crypto revenue plunges 55% as prediction markets gain ground

Robinhood’s cryptocurrency transaction revenue fell 55% year over year to $120 million, reflecting weaker trading activity across its crypto businesses.

Total crypto notional trading volume declined 38% to $50 billion, including $21 billion through the Robinhood App and $29 billion through Bitstamp.

Meanwhile, prediction markets continued expanding, with event contracts generating $173 million in revenue, more than six times the amount recorded a year earlier.

The business outperformed crypto transaction revenue for the second consecutive quarter, highlighting the growing contribution of prediction markets to Robinhood’s trading operations.

Options revenue climbed 31% to $399 million, while equities revenue increased 41% to $121 million.

Overall transaction-based revenue reached $867 million, up 19% year over year, as stronger options, equities and event contracts activity offset the slowdown in cryptocurrency trading.

Robinhood also reported 5.2 million Gold subscribers, up 34% from a year earlier, while total platform assets climbed 19% to $396 billion.

Robinhood Chain generates $80B in DEX volume during first quarter

The company also disclosed its first quarterly performance figures for Robinhood Chain since the network launched its mainnet on July 1.

Robinhood said its Ethereum layer 2 generated more than $80 billion in decentralized exchange trading volume and over $50 million in chain fees during the quarter.

According to the company, the network ranked among the five largest blockchains by revenue and volume during its first quarter of operation.

However, Robinhood did not specify how much of that activity came from tokenized stocks.

The network hosts Robinhood Stock Tokens, which provide eligible investors outside the US with blockchain-based exposure to traditional securities.

Ondo’s latest expansion adds 15 tokenized stocks and ETFs to Robinhood Chain, including Nvidia, Apple, Tesla and Robinhood itself.

Eleven of those assets have corresponding Robinhood Stock Tokens and are supported by Uniswap v4 StablePair pools, allowing traders to swap between tokenized versions of the same underlying security.

HOODon is among four assets that launched without a matching Robinhood Stock Token, alongside tokenized products tracking BitMine, the iShares China Large-Cap ETF and the United States Copper Index Fund.

Robinhood lowers expense outlook despite record revenue

Robinhood ended the quarter with approximately $15.7 billion in net deposits, while October deposits had already exceeded $13 billion, according to Chief Financial Officer Shiv Verma.

That October figure included $6 billion associated with the Dell family’s contribution to Trump Accounts.

The brokerage also lowered the upper end of its 2026 adjusted operating expense and share-based compensation outlook by $25 million, setting a revised range of $2.675 billion to $2.75 billion.

Despite the earnings miss and weaker cryptocurrency activity, the company continued expanding its trading products and financial services.