TLDR
- Robinhood (HOOD) stock closed at $94.56, then fell about 6% after hours to $89.22 following Q3 results.
- Revenue rose 12% to a record $1.424 billion, just under the $1.43 billion forecast.
- EPS of $0.51 missed the $0.55 consensus, and net income fell 14% to $476 million.
- Crypto revenue fell 55% to $120 million but beat the $114.1 million estimate.
- Prediction markets brought in $173 million, more than six times last year’s level.
Robinhood (HOOD) stock closed at $94.56 on Tuesday, then fell 5.5% in after-hours trading to $89.22. The stock is down roughly 22% year to date.
The drop followed the company’s third-quarter report. Earnings missed, and revenue landed just under forecasts.
Revenue rose 12% from a year ago to a record $1.424 billion. Analysts had expected $1.43 billion.
Earnings per share came in at $0.51, below the $0.55 consensus. Net income fell 14% to $476 million.
Crypto revenue falls but beats forecasts
Crypto transaction revenue fell 55% to $120 million, down from about $267 million a year earlier. Wall Street had expected $114.1 million.
Crypto now makes up 8.4% of total revenue. A year ago, that figure was about 21%.
Total crypto trading volume fell 38% from a year ago to $50 billion. The Robinhood app handled $21 billion, down 48%.
Bitstamp handled $29 billion, down 28%. Volume did rise 23% from the second quarter, according to The Block.
Robinhood Chain launched on mainnet July 1 and brought in $26 million in its first quarter. Without it, crypto transaction revenue fell 6% from Q2 to $94 million.
So the quarterly gain came from the new network, not the core trading business. That is a small twist in an otherwise soft crypto picture.
Other businesses pick up the slack
Prediction markets were the star. Event contracts generated $173 million, up 11% from Q2 and more than six times last year’s level.
That includes $28 million from Rothera, the exchange Robinhood runs with Susquehanna. Prediction markets continue to bring in more revenue than crypto.
Options revenue rose 31% to $399 million. Equities revenue climbed 41% to $121 million.
Robinhood Chain processed more than $80 billion in decentralized exchange volume. It also generated over $50 million in chain fees.
Those fees are separate from reported crypto transaction revenue. The company did not say how much it counted as revenue.
Robinhood stock was trading near $89 after hours, about 5% to 6% below Tuesday’s close.
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