Robinhood (HOOD) reported a 339% year-over-year increase in third-quarter crypto trading revenue on Wednesday, extending momentum from earlier this year as the trading app leans more into digital assets and global markets.
The company processed $80 billion in crypto transaction volume during the quarter, posting $268 million in crypto-related revenue, compared to $61 million in the same quarter last year. Adjusted earnings per share (EPS) came in at $0.61 versus the Street estimate of $0.53; total net income reached $1.27 billion versus the forecasted $1.21 billion.
Shares were down 2% in after-hours trading, but remain up about 260% year to date.
“The third quarter was another solid quarter of profitable growth, and we continued to diversify our business, adding two additional business lines – Prediction Markets and Bitstamp – which generate approximately $100 million or more in annualized revenue,” said CFO Jason Warnick. “And the fourth quarter got off to a strong start in October, with record monthly trading volumes across stocks, options, forecast markets and futures, and new highs for margin balances.”
The company now has a market cap of $126 billion, putting it above competitors like Coinbase (COIN), which reported strong earnings last week.
These strong results follow a series of moves aimed at deepening Robinhood’s crypto footprint. Earlier this year, the company acquired Bitstamp, expanding its regulatory presence and user base in more than 50 countries.
