Robinhood Earnings: What the Roughly 10% Implied Move and Monthly Data Show

Robinhood Markets reports third-quarter 2026 results on Tuesday, Oct. 27, after the market closes, according to the company. A video call with CEO Vlad Tenev and CFO Shiv Verma starts at 5 p.m. ET (2 p.m. PT).

Robinhood's revenue rises and falls with how actively people trade, so the numbers are a window into retail investor behavior. They are also a good case study in how to read an options-implied move, the swing in the stock that option prices suggest.

What an implied move means

An option is a contract giving its holder the right, but not the obligation, to buy or sell a stock at a set price (the strike) by a set date. A straddle pairs a call (which gains value if the stock rises) with a put (which gains if it falls) at the same strike and expiration.

Dividing the price of the straddle whose strike is closest to the stock price (the at-the-money straddle) by the stock price gives a rough implied move: how large a swing option prices suggest, with no direction attached.

TipRanks, a secondary source, reported on Oct. 23 that a $95 straddle expiring Oct. 30, made up of a call at $5.10 and a put at $4.65, implied a move of about 10.26% when the stock was near $95.05. The same article put Robinhood's average absolute one-day move after the last eight earnings reports at about 9.42%.

Two caveats apply:

• These figures come from one source, not an exchange feed, and they change as option prices change.
• The Oct. 30 expiration also covers several sessions, not only the first reaction.

Beating forecasts and still falling

Analysts' consensus estimates vary by data provider. MarketBeat showed about $0.56 in earnings per share on about $1.44 billion in revenue, while Hudson Labs showed about $0.54 on $1.41 billion.

Reports from TipRanks and TIKR listed a number of recent earnings days when the stock fell, including some where results beat estimates. A stock's reaction depends on how results and guidance compare with what investors already expected, not simply on whether a number is good.

What the company's own data shows

Robinhood publishes monthly operating data, which makes it easier to see trends before earnings.

In its second-quarter 2026 release, the company reported revenue of $1.31 billion, 28.4 million funded customers, and 4.8 million Gold subscribers. Its $0.62 of diluted earnings per share (profit per share, counting all potential shares) included $0.14 from the deconsolidation of a fund (removing the fund from Robinhood's reported results), a one-time item worth separating from ongoing results.

The August 2026 operating data showed 292.5 million options contracts traded on the platform, down from 324.2 million in July, and equity trading volume of $335.4 billion. Robinhood said full September data would come with the earnings release instead of a separate monthly report, after a preliminary month-to-date update covering Sept. 1 to 24.

Volatility crush

Implied volatility, the market's estimate of how much a stock may move, usually rises into a known event and falls afterward. Traders call that drop volatility crush. An option can lose value even if the stock moves in the direction its owner hoped for, if the move is smaller than what was priced in.

Risks

Options involve substantial risk and are not suitable for all investors. They can expire worthless, buyers can lose the entire premium paid, and prices can gap on earnings news before anyone can react. Selling options can produce losses that far exceed the income collected. Anyone considering options should first read the Options Disclosure Document, "Characteristics and Risks of Standardized Options," available from the Options Clearing Corporation. Nothing here predicts how any stock will react.

This article is educational commentary on public market events, not personalized investment, trading, or tax advice.