Robinhood posts record $1.4 billion revenue, but a 14% profit drop exposes hidden portfolio losses

Robinhood's event-contract revenue exceeded crypto revenue for the second consecutive quarter, reaching $173 million in the third quarter, up from $120 million in the second quarter, according to the company's results.Both businesses grew from the second quarter, with Robinhood's crypto revenue rising from $100 million to $120 million quarter-on-quarter. Revenue from prediction markets rose from $156 million to $173 million in the same period.Year over year, cryptocurrency revenue fell 55%, while event-contract revenue grew more than sixfold. That growth raises the stakes in the dispute over whether states can restrict federally regulated prediction markets.Total net revenue reached a record $1.4 billion, up 12% year over year. Transaction-based revenue rose 19% to $867 million, supported by options, equities and event contracts.Net income fell 14% year over year to $476 million, while diluted earnings per share declined 16% to 51 cents. Robinhood said the result included $67 million in unrealized losses, primarily related to Robinhood Ventures Fund I.The lead over crypto was already evident in Robinhood's second-quarter revenue mix. These companywide figures show how Robinhood ear...