Robinhood (Hood) on Wednesday reported A 339% year-over-year increase in third-quarter crypto trading revenue, extending momentum from earlier this year as app trading delved deeper into digital assets and global markets.
The company handled $80 billion in crypto trading volume during the quarter, posting $268 million in crypto-related revenue, up from $61 million in the same quarter last year. Adjusted earnings per share (EPS) came in at $0.61 versus street estimates for $0.53; Total net income came in at $1.27 billion compared to forecasts for $1.21 billion.
Shares were down 2% in after-hours trading, but remain up about 260% year-to-date.
“Q3 was another strong quarter of profitable growth, and we continued to diversify our business, adding two more lines of business – prediction markets and bitstamp – that generate approximately $100 million or more in annual revenues,” said CFO Jason Warnick. “And Q4 is off to a strong start in October, with record monthly trading volume in equities, options, prediction markets, and futures, and new highs for margin balances.”
The company now has a market capitalization of $126 billion, putting it above rivals like Coinbase (Coin), which reported strong earnings last week.
The strong results follow a string of moves to deepen Robinhood’s crypto footprint. Earlier this year, the firm acquired Bitstamp, expanding its regulatory presence and user base to more than 50 countries.
