Robinhood shares fell in after-hours trading as investors digested a mixed third-quarter report in which transaction-based revenue missed Wall Street expectations despite growth in options trading and prediction markets.
Here's how the brokerage performed in its quarter ended Sept. 30, compared with Wall Street estimates, based on a survey of analysts by LSEG:
Robinhood's net income fell to $468 million, or 51 cents per share, from $556 million, or 61 cents per share, a year ago. It wasn't immediately clear if Robinhood's earnings were comparable with LSEG estimates.
Revenue represented a 12% increase from $1.27 billion in the same quarter last year.
Despite that gain, transaction-based revenue of $867 million came in below Wall Street estimates from StreetAccount of $879 million, putting the focus on whether Robinhood can sustain momentum across its trading businesses and reduce its reliance on volatile market activity.