Robinhood reported a 339% year-over-year increase in third-quarter crypto trading revenue, reaching $268 million, as the company beat earnings expectations. The brokerage processed a record $80 billion in crypto volume amid expansions into new business lines. Shares fell slightly in after-hours trading despite the positive results.
Robinhood (HOOD) announced on Wednesday a strong third-quarter performance, with crypto trading revenue jumping 339% from the previous year to $268 million, up from $61 million. This surge contributed to the company exceeding Wall Street estimates, posting adjusted earnings per share of $0.61 compared to the forecasted $0.53. Total net revenue hit $1.27 billion, surpassing predictions of $1.21 billion.
The quarter saw record crypto trading volume of $80 billion, reflecting Robinhood's growing emphasis on digital assets. The firm has been expanding its offerings, including the addition of prediction markets and the acquisition of Bitstamp earlier in the year, which broadens its reach to over 50 countries. These new business lines are expected to generate approximately $100 million or more in annualized revenues.
CFO Jason Warnick highlighted the momentum: “Q3 was another strong quarter of profitable growth, and we continued to diversify our business, adding two more business lines — Prediction Markets and Bitstamp — that are generating approximately $100 million or more in annualized revenues.” He added, “And Q4 is off to a strong start in October, with record monthly trading volumes across equities, options, prediction markets, and futures, and new highs for margin balances.”
Despite the earnings beat, Robinhood's shares dropped 2% in after-hours trading, though they remain up about 260% year-to-date. The company's market capitalization now stands at $126 billion, surpassing rival Coinbase (COIN), which also reported robust earnings recently.