CryptoSlate
Robinhood reported $120 million in cryptocurrency revenue for the three months ended Sept. 30, down 55% year over year and below the $173 million generated by prediction markets. Crypto’s share of total revenue fell to 8.4% from about 21% a year earlier, even as company revenue rose 12% to a record $1.42 billion.
Why it matters
The results show Robinhood’s growth shifting toward prediction markets and options as crypto contributes a smaller share of the business. Prediction-market revenue grew more than sixfold year over year, and customers traded a record 16.4 billion event contracts. Options generated $399 million, up 31%, with a record 905 million contracts traded.
Robinhood Chain, the company’s Ethereum-based Layer 2 network, contributed $26 million to reported crypto revenue. It processed more than $80 billion in decentralized exchange volume during its first quarter on mainnet. Without that contribution, crypto revenue would have fallen 6% quarter over quarter to $94 million; with it, revenue rose 20% from the preceding quarter.
Market impact
Crypto trading volumes increased 23% sequentially to $49.8 billion, split between $29.2 billion at Bitstamp and $20.6 billion on Robinhood’s retail app. But total volume remained 38% lower than a year earlier. App volume fell 48% year over year, while Bitstamp volume declined 28%. Robinhood’s app generated $88 million in crypto trading revenue, down from $94 million in the prior quarter; Bitstamp contributed $6 million, unchanged.
Options and prediction markets helped lift transaction-based revenue 19% to $867 million. The broader revenue growth did not prevent net income from falling 14% to $476 million, while diluted earnings per share dropped 16% to $0.51. Investors are seeing two different trends: weaker year-over-year crypto trading, and a new blockchain contribution alongside rapid growth in event contracts.
Frequently asked questions
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How much crypto revenue did Robinhood report for the quarter?
Robinhood reported $120 million in cryptocurrency revenue for the three months ended Sept. 30, down 55% year over year.
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How did prediction markets compare with Robinhood’s crypto business?
Prediction markets generated $173 million, exceeding crypto revenue of $120 million. Their revenue grew more than sixfold year over year.
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How much did Robinhood Chain contribute to crypto revenue?
Robinhood Chain contributed $26 million. Without that contribution, crypto revenue would have declined 6% quarter over quarter to $94 million.
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Did Robinhood’s crypto trading volumes also fall?
Volumes increased 23% sequentially to $49.8 billion, but were 38% lower year over year. Robinhood’s retail app volume fell 48% annually.
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What happened to Robinhood’s profit despite record revenue?
Company revenue rose 12% to a record $1.42 billion, but net income fell 14% to $476 million and diluted earnings per share declined 16% to $0.51.
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