Robinhood (HOOD) on Wednesday reported a 339% year-over-year increase in third-quarter crypto trading revenue, building on momentum from earlier this year as the trading app leans deeper into digital assets and global markets.
The company processed $80 billion in crypto trading volume during the quarter, with crypto-related revenue of $268 million, up from $61 million in the same period last year. Adjusted earnings per share (EPS) was $0.61, compared to the consensus estimate of $0.53. Total net revenue came in at $1.27 billion, compared to expectations of $1.21 billion.
The stock price fell 2% in after-hours trading, but remains up about 260% year-to-date.
“The third quarter was another strong quarter of profitable growth. We continue to diversify our business and add two additional business lines, Prediction Markets and Bitstamp, generating approximately $100 million or more in annual revenue,” said CFO Jason Wernick. “And the fourth quarter in October got off to a strong start, with record monthly trading volumes across stocks, options, prediction markets and futures, and record margin balances.”
The company now has a market capitalization of $126 billion, surpassing rivals such as Coinbase (COIN), which reported strong results last week.
This strong performance follows a series of moves to deepen Robinhood’s focus on cryptocurrencies. Earlier this year, the company acquired Bitstamp, expanding its regulatory presence and user base in more than 50 countries.
