Robinhood’s shares are being crushed by premarket traders on Wednesday, following the release of a worrying earnings report.

RobinhoodShares are falling 10% in extended trading. This is below the stock trading application’s IPO price, $38 per share.

Robinhood: The fall missed on the top and bottom lines of its third quarter results. Robinhood predicted that there would be headwinds to trading into next year, and this led to a drop in revenue.

The second quarter was “one of those idiosyncratic market events where there’s this massive interest specifically in Doge,” Robinhood CFO Jason Warnick told CNBC. These moments are a joy for us. This is a wonderful way to attract a lot more customers on the platform, but it’s also a good opportunity for us to invest in crypto long-term. Unfortunately, it’s impossible to predict…revenue on quarter-to-quarter bases.

The total revenue for the third quarter was $365 million. This is lower than the $431.5 million Refinitiv estimated. The revenue for the third quarter was $565 million less than that of the previous quarter, but was helped by an increase in cryptocurrency trading.

Revenue from transaction based sales was $267 Million in the third quarter, but only $51 Million came from cryptocurrency trading. The second quarter saw a $233 million increase in crypto trading revenue, thanks to interest in meme-inspired Dogecoin.

Vlad Tenev CEO Robinhood said that Robinhood would wait for crypto regulatory clarity before adding any more digital coins. There are seven different coins available for the brokerage currency.

Robinhood posted a net loss $1.32 Billion, or $2.06 per Share. According to Refinitiv, Wall Street expected a loss in the range of $1.37 per shares. 

Also, the brokerage gave an unfavorable outlook for the remainder of 2021. Robinhood expects that fourth-quarter revenues will not exceed $325 millions. According to Robinhood, account growth is expected to be similar in proportion with the 660,000 accounts it opened in the third-quarter of 2021.

Warnick stated that “we wanted to be as conservative as possible for our revenue guidance” due to seasonal headwinds, lower volatility and other factors.

Robinhood Management described the quarter on the earnings call as one that did not have a significant market event like GameStop trading during the first quarter or the rise in Dogecoin during the second quarter.

— with reporting from CNBC’s Kate Rooney.