Robinhood’s crypto transaction revenue dropped 55% year over year to $120 million in the third quarter, but the result still came in ahead of Wall Street expectations of $114.1 million, according to the company’s earnings report released Tuesday.
The company said crypto accounted for 8.4% of its $1.424 billion in total quarterly revenue, down from roughly 21% a year earlier. In dollar terms, crypto transaction revenue fell from about $267 million in the same quarter last year to $120 million this quarter.
Trading activity weakened across Robinhood’s crypto platforms
The revenue decline matched a slowdown in customer trading. Total crypto trading volume fell 38% from a year earlier to $50 billion.
Robinhood said $21 billion of that volume came through the Robinhood app, a 48% decline, while $29 billion came through crypto exchange Bitstamp, down 28%.
The drop in crypto activity stood out because Robinhood’s broader business still grew during the quarter.
Total revenue rose, but missed forecasts
Robinhood posted total third-quarter revenue of $1.424 billion, up 12% year over year. Growth in options, equities and prediction markets helped lift the overall result.
Even so, total revenue came in slightly below Street estimates of $1.43 billion. Third-quarter EPS was $0.51, also below consensus forecasts of $0.55. Shares were down about 5% in after-hours trading.
Other business lines posted gains
- Options trading revenue rose 31% to $399 million.
- Equities revenue increased 41% to $121 million.
- Prediction markets generated $173 million, more than six times the year-earlier figure.
Robinhood continued building its digital asset business
Despite weaker crypto trading revenue, the company said it kept expanding its digital asset operations. Robinhood said Robinhood Chain, its blockchain network, processed more than $80 billion in decentralized exchange trading volume during its first quarter operating on mainnet.
The company also said the network generated more than $50 million in chain fees over that period. Robinhood noted that those fees reflect activity on the blockchain and should not be confused with the crypto transaction revenue reported in its earnings. It did not disclose how much of those chain fees it recognized as revenue.
Robinhood shares were down about 5% in post-market trading.