Robinhood Markets experienced a significant increase in its cryptocurrency revenues during the third quarter, with crypto-related income rising more than 300% from the previous year. This sharp growth contributed notably to the company’s overall quarterly earnings, which surpassed analyst expectations. The firm reported transaction-based revenues of approximately $730 million for the quarter ending September 30, representing a 129% year-over-year increase.
Total revenue for the period reached $1.27 billion, more than doubling compared to the same quarter last year and surpassing forecasts of $1.2 billion. Earnings per share also saw substantial growth, rising 259% to 61 cents per share, outpacing estimates of 51 cents. This robust financial performance underscores Robinhood’s expanding presence beyond traditional stock trading, particularly in the cryptocurrency sector.
While Robinhood has historically been associated with retail stock trading, it has been actively diversifying its offerings to capture users interested in digital assets. The company completed the acquisition of Bitstamp in June, a move aimed at enhancing its cryptocurrency trading infrastructure. Additionally, Robinhood has introduced tokenized stocks and prediction markets, broadening its competitive position within the fintech and blockchain spaces. Company executives have indicated that its businesses related to Bitstamp and prediction markets are generating annualized revenues of approximately $100 million or more.
Despite a slight dip after trading hours, Robinhood’s stock closed Wednesday at $142.48, up 4.15% for the day. Earlier in the year, shares reached an all-time high of $152.46 on October 9 but were subsequently affected by a broader downturn in the cryptocurrency markets.
The company’s leadership has expressed interest in expanding the reach of its prediction markets globally, with plans to optimize offerings for different jurisdictions. There is also ongoing development towards greater interoperability of tokenized stocks, seeking to bridge assets across different blockchain networks. As blockchain communities continue to build interconnected solutions, Robinhood aims to leverage these advancements to strengthen its position in the evolving digital asset landscape.
