Robinhood’s Crypto Trading Revenue Soared 339% in Q3 as Company Tops Street Earnings Estimates
Robinhood (HOOD) reported a 339% year-over-year increase in third-quarter crypto trading revenue, reaching $268 million compared to $61 million last year. The company processed $80 billion in crypto trading volume and achieved adjusted EPS of $0.61, beating estimates of $0.53. Total net revenue hit $1.27 billion, exceeding forecasts of $1.21 billion. Despite a 2% drop in after-hours trading, the stock remains up 260% year-to-date. Robinhood expanded its business by launching Prediction Markets and acquiring Bitstamp, adding over $100 million in annualized revenues and increasing its global footprint across 50+ countries. With a market cap of $126 billion, it now surpasses rivals like Coinbase.
Strong Growth in Crypto Trading Revenue
Robinhood (HOOD) reported an impressive 339% year-over-year increase in crypto trading revenue for the third quarter. The company continues to ride the momentum from earlier this year as it dives deeper into digital assets and global markets. Crypto trading volume during the quarter reached $80 billion, generating $268 million in crypto-related revenue — a significant jump from $61 million during the same quarter last year.
Better-than-Expected Earnings
Robinhood delivered adjusted earnings per share (EPS) of $0.61, beating analyst expectations of $0.53. The company also reported total net revenue of $1.27 billion, surpassing forecasts of $1.21 billion. Despite this strong performance, shares dropped by 2% in after-hours trading, though they remain 260% higher year-to-date.
Business Diversification Strategies
CFO Jason Warnick highlighted the company’s ongoing efforts to diversify its revenue streams. Robinhood added two new business lines — Prediction Markets and Bitstamp — which are expected to generate annualized revenues of $100 million or more. Warnick stated, 'Q3 was another strong quarter of profitable growth,' and noted that the company is off to a strong start in Q4, with record trading volumes in equities, options, prediction markets, and futures, as well as new highs for margin balances.
Market Capitalization and Competitive Position
Robinhood now boasts a market capitalization of $126 billion, placing it ahead of competitors like Coinbase (COIN), which also reported strong earnings recently. The increase in market cap underscores Robinhood's growing dominance in the financial and crypto-trading sectors.
Strategic Moves to Expand Crypto Presence
Robinhood’s strong results are partly attributed to its efforts in deepening its crypto footprint. Earlier this year, the company acquired Bitstamp, enhancing its regulatory reach and expanding its user base across more than 50 countries. This move has solidified Robinhood’s position as a key player in the global crypto ecosystem.