Robinhood’s Crypto Revenues Soar 300%, Smashing Wall Street Expectations

According to reports, Robinhood Markets posted a surprise surge in crypto income that helped lift its third-quarter results above Wall Street ￰0￱ revenue for the three months ended Sept. 30 rose to $1.27 billion, double what the company reported a year ￰1￱ beat analysts’ $1.2 billion estimate. Robinhood: Crypto Sales Drive A Big Part Of The Gain The firm said crypto trading produced nearly $270 million in the quarter, a jump of more than 300% from a year earlier. Transaction-based revenue overall grew almost 130% to $730 million, and earnings per share climbed close to 260% to $0.61, topping the $0.51 analysts had ￰2￱ figures show how much movement in crypto trades can change quarterly results for ￰3￱ business lines are starting to ￰4￱ Warnick, Robinhood’s finance chief, told investors that Bitstamp, which Robinhood bought in June, and the company’s prediction markets are producing roughly $100 million or more in annualized ￰5￱ contribution is already being factored into the company’s growth ￰6￱ Push Into Crypto Products Once known mainly for free stock trades, the company has been broadening its product ￰7￱ now offers tokenized versions of shares and prediction market trading, and it completed the Bitstamp deal as part of that ￰8￱ show executives see room to expand access to prediction markets globally, though they say rollout will depend on local ￰9￱ Vladimir Tenev also discussed how tokenized stock offerings work today and what might ￰10￱ said those products are “not as interoperable as we would like” because they are not yet on DeFi, but he expects more interoperability over time as developers build bridges and ￰11￱ path, he argued, could make tokenized assets easier to move between networks and ￰12￱ Reaction And Stock Moves On the day of the report , Robinhood shares rose 4% to $142 in regular trading, but slipped back to under $140 after the market ￰13￱ stock has already gained more than 280% so far this year and reached an all-time high of $152 on Oct. 9 before a later crypto market sell-off cooled ￰14￱ numbers create a mixed picture for ￰15￱ top-line gains are ￰16￱ the business is tied closely to crypto volume, which can be ￰17￱ from newer units like Bitstamp and prediction markets is becoming material, but regulators and market swings could change that math ￰18￱ will be watching whether crypto revenue stays at these elevated levels, and how regulators respond to expanded tokenized ￰19￱ now, Robinhood’s shift toward crypto and related services is visible in the ￰20￱ firm reported big gains, and those gains are being driven by customers trading crypto and by a couple of recently acquired or launched businesses that are already bringing in significant ￰21￱ image from Unsplash, chart from TradingView