Robinhood’s third-quarter earnings delivered a strong upside surprise, fueled by a surge in crypto trading and expanding global operations.
Key Takeaways:
- Robinhood’s Q3 results beat Wall Street expectations, with revenue climbing sharply year-over-year.
- Crypto trading played a major role, fueling one of the company’s strongest quarters to date.
- The platform continues expanding globally through new acquisitions and product lines.
Shares of Robinhood (HOOD) rose 4.15% on Wednesday after the U.S. brokerage firm reported better-than-expected third-quarter earnings, driven by surging crypto revenues and growing diversification.
The company’s transaction-based revenue jumped 129% year-over-year to $730 million, with its crypto division skyrocketing over 300% to $268 million. Meanwhile, options trading revenue rose 50% to $304 million, and equities trading surged 132% to $86 million, according to the latest earnings report.
Chief Financial Officer Jason Warnick described Q3 as another period of “profitable growth,” highlighting Robinhood’s entry into new segments such as Prediction Markets and its Bitstamp acquisition, which together contribute around $100 million annually.
Strong Earnings Beat and Expanding Revenue Mix
Total quarterly revenue reached $1.27 billion, beating analyst estimates of $1.19 billion, while earnings per share came in at $0.61, surpassing projections of $0.53, per CNBC.
The number of funded accounts climbed to a record 26.8 million, while platform assets nearly doubled to $333 billion, reflecting strong user engagement and asset appreciation.
Robinhood’s international expansion continues to accelerate following its acquisition of Bitstamp and Canada-based WonderFi, alongside a new partnership with Arbitrum to offer over 400 stock tokens mirroring U.S. equities.
The results highlight Robinhood’s successful transition into a global, crypto-forward trading platform — one that’s increasingly integrating traditional finance with blockchain-driven products.
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Source: https://coindoo.com/crypto-comeback-robinhoods-earnings-surge-thanks-to-bitcoin-and-altcoins/