Robinhood Markets reported a strong third quarter, with crypto revenue surging 300% year-over-year, helping the trading platform beat Wall Street expectations.
The company said Wednesday that its Q3 transaction-based revenue climbed 129% from the same period last year to $730 million, driven largely by $268 million in crypto revenue, marking a more than threefold increase from 2024.
Overall, Robinhood’s total revenue for the quarter ending Sept. 30 doubled year-over-year to $1.27 billion, surpassing analyst projections of $1.2 billion. Earnings per share rose 259% to 61 cents, ahead of the 51-cent estimate.
While traditionally focused on stock trading, Robinhood has been expanding its crypto offerings, targeting both retail and institutional users. The company acquired Bitstamp in June and also provides tokenized stocks and prediction markets.
Finance chief Jason Warnick noted that Bitstamp and the prediction markets segment are generating roughly $100 million or more in annualized revenue.
Shares of Robinhood (HOOD) closed Wednesday up 4.15% at $142.48, though they dipped over 2% after-hours to just below $140.
Robinhood’s stock has surged more than 280% this year, hitting an all-time high of $152.46 on Oct. 9 before a major crypto market downturn curtailed further gains.
Discussing future growth, CEO Vladimir Tenev told investors at an earnings call that the company is exploring ways to expand the global reach of its prediction market offerings.
“As a scaled traditional player, and on the crypto side as well, we’ll be able to choose the best approach in each jurisdiction,” he said. “This is something we’re actively evaluating.”
Tenev noted that Robinhood’s tokenized stock offerings “aren’t as interoperable as we’d like, but that’s primarily because they aren’t on DeFi yet.”
“Over time, I expect interoperability to improve,” he added. “As we’ve seen with other crypto assets, even when they exist on different chains, the community often steps in to build bridges and wrappers, so it’s becoming less of a concern.”
