Robinhood (HOOD) Reports Strong Q3 Growth Driven by 300% Rise in Crypto Sales

TLDR

• Robinhood reported $1.2 billion in revenue for the third quarter, nearly doubling from the same period last year.
• The company earned $0.61 per share and $556 million in profits, surpassing analyst expectations.
• Crypto transaction revenue increased more than 300% year-over-year, reaching $268 million.
• Transaction-based income totaled $730 million, slightly below forecasts but supported by other strong revenue streams.
• CEO Vlad Tenev said product expansion and innovation continued to drive record business performance.

Robinhood (HOOD) reported strong third-quarter results, driven by higher crypto activity and steady user growth. The company generated $1.2 billion in revenue, nearly doubling from a year earlier. It also posted earnings per share of $0.61 and profits of $556 million, exceeding analyst estimates.

The firm said continued momentum in trading and new products supported its growth. “Our team’s relentless product velocity drove record business results in Q3,” said CEO Vlad Tenev. He added that Robinhood would continue expanding into prediction markets and banking.

Revenue Growth and Market Expansion

Robinhood increased total revenue to $1.2 billion, up almost 100% from the previous year. The surge reflected higher activity in crypto and prediction markets. Analysts had expected lower results, but the company outperformed expectations again.

The firm earned $730 million in transaction-based income, slightly under forecasts. However, it maintained strong momentum across other revenue streams. Crypto and prediction markets played a growing role in the company’s performance.

Robinhood Banking began its initial rollout, extending its ecosystem beyond trading. The company said it plans to strengthen customer engagement with new financial products. Its expansion reflects a broader strategy to diversify revenue sources.

Robinhood Stock Climbs on Crypto Expansion

Crypto transaction revenue rose to $268 million, a more than 300% increase from last year. The company recorded $160 million in Q2 and $252 million in Q1. The steady quarterly growth underscores its progress in the crypto segment.

Robinhood benefited from rising Bitcoin price during the quarter. Bitcoin increased over 6% in Q3, trading at $103,644, according to CoinGecko. Despite the modest crypto market, user trading activity remained resilient.

The firm’s crypto operations continue to be a strong growth engine. It competes closely with Coinbase, whose shares have grown about 25% this year. Robinhood’s stock has gained around 260% year-to-date, reflecting investor confidence.

Prediction Markets and Future Outlook

Robinhood entered prediction markets in partnership with Kalshi. It allows users to trade on events in sports, economics, and culture. The company charges a one-cent fee per event contract traded.

Analysts at Compass Point recently reaffirmed a “buy” rating for Robinhood. They raised the price target to $161, above its previous record of $153. The analysts expect fourth-quarter revenue of $50 million with a full NFL season.

Robinhood’s third-quarter earnings strengthen its market position. The company’s ongoing expansion and growing crypto revenues suggest further momentum ahead. Its shares closed at $143.40 before ticking slightly lower in after-hours trading.