Key Takeaways
- • Robinhood (HOOD) reported crypto revenue of $120M in Q3, down 55% year over year but up 20% quarter over quarter, according to its Q3 earnings release.
- • Total net revenue rose 12% YoY to a record $1.42B, driven by options (up 31% to $399M), event contracts ($173M, more than sixfold increase), and equities (up 41% to $121M).
- • Net income fell 14% YoY to $476M and diluted EPS declined 16% to $0.51, with $67M of the net loss attributed to unrealized losses tied to the valuation of Robinhood Ventures Fund I.
- • Crypto notional trading volume fell 38% YoY to $50B, with Robinhood App volumes down 48% to $21B and Bitstamp volumes down 28% to $29B.
- • Robinhood Chain ranked among the top five chains by revenue and volume in its first quarter on mainnet, generating over $80B in DEX volume and more than $50M in chain fees.
Summary
Robinhood (HOOD) reported a 55% year-over-year decline in crypto revenue for the third quarter, to $120 million, according to its Q3 earnings release, as reported by FXStreet. The decline contrasted with a record quarter for the company overall: total net revenue rose 12% YoY to $1.42 billion, supported by growth in options trading, equities and event contracts. Event contracts generated $173 million, more than sixfold the prior-year level, while options revenue climbed 31% to $399 million and equities revenue increased 41% to $121 million.
Profitability moved in the opposite direction. Net income fell 14% over the past year to $476 million, and diluted earnings per share declined 16% to $0.51. The company attributed $67 million of the net loss to unrealized losses, primarily related to the valuation of Robinhood Ventures Fund I. Chief Financial Officer Shiv Verma said in the release that customers were trusting the company with more of their assets, leading to its highest quarter ever for revenues.
On a sequential basis, crypto revenue improved 20% from the prior quarter. However, crypto activity weakened year over year: notional crypto trading volume fell 38% to $50 billion, with Robinhood App volumes down 48% to $21 billion and Bitstamp volumes down 28% to $29 billion. Robinhood Chain became a top-five chain by revenue and volume during its first quarter on mainnet, generating over $80 billion in decentralized exchange volume and more than $50 million in chain fees.
HOOD closed at $94.56, up 1.8% on the day, but fell more than 7% in after-hours trading following the report. In a separate FXStreet report on the same date, Galaxy Digital (GLXY) reported $323 million in Q3 net income, compared with a net loss of $85 million in the prior quarter, with adjusted EBITDA of $455 million. Its Treasury and Corporate segment contributed $419 million in gross profit, benefiting from higher valuations of digital asset holdings and private investments. GLXY closed at $17.18, up 9.5% on the day.
Profitability moved in the opposite direction. Net income fell 14% over the past year to $476 million, and diluted earnings per share declined 16% to $0.51. The company attributed $67 million of the net loss to unrealized losses, primarily related to the valuation of Robinhood Ventures Fund I. Chief Financial Officer Shiv Verma said in the release that customers were trusting the company with more of their assets, leading to its highest quarter ever for revenues.
On a sequential basis, crypto revenue improved 20% from the prior quarter. However, crypto activity weakened year over year: notional crypto trading volume fell 38% to $50 billion, with Robinhood App volumes down 48% to $21 billion and Bitstamp volumes down 28% to $29 billion. Robinhood Chain became a top-five chain by revenue and volume during its first quarter on mainnet, generating over $80 billion in decentralized exchange volume and more than $50 million in chain fees.
HOOD closed at $94.56, up 1.8% on the day, but fell more than 7% in after-hours trading following the report. In a separate FXStreet report on the same date, Galaxy Digital (GLXY) reported $323 million in Q3 net income, compared with a net loss of $85 million in the prior quarter, with adjusted EBITDA of $455 million. Its Treasury and Corporate segment contributed $419 million in gross profit, benefiting from higher valuations of digital asset holdings and private investments. GLXY closed at $17.18, up 9.5% on the day.
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