Strong Crypto Results Help Drive Earnings Beat

Robinhood (HOOD) on Wednesday reported a 339% year-over-year increase in the third quarter of crypto trading revenue, extending the momentum from earlier this year, as the trading app leans more into digital assets and global markets.

The company handled $80 billion in crypto trading volume during the quarter, posting $268 million in crypto-related revenue, up from $61 million in the same quarter last year. Adjusted earnings per share (EPS) came in at $0.61 against Street estimates for $0.53; Total net income reached $1.27 billion versus forecasts for $1.21 billion.

Shares were down 2% in after-hours trading, but remain up about 260% year to date.

“Q3 was another strong quarter of profitable growth, and we continued to diversify our business, adding two more lines of business – Prediction Markets and Bitstamp – that generate approximately $100 million or more in annual revenue,” said CFO Jason Warnick. “And Q4 is off to a strong start in October, with record monthly trading volumes in equities, options, forecast and futures markets, and new highs for margin balances.”

The company now has a market capitalization of $126 billion, putting it above rivals like Coinbase (COIN), which reported strong gains last week.

The strong results follow a series of moves to deepen Robinhood’s crypto footprint. Earlier this year, the firm acquired Bitstamp, expanding its regulatory presence and user base to more than 50 countries.