Robinhood Markets reported a drop in third-quarter profit on Tuesday as slower cryptocurrency trading weighed on growth, despite robust trading activity across other asset classes. The company posted a profit of $476 million, or 51 cents per share, for the three months ended September 30, compared with $556 million, or 61 cents per share, a year earlier.
Oct 27 : Robinhood Markets reported a drop in third-quarter profit on Tuesday as slower cryptocurrency trading weighed on growth, despite robust trading activity across other asset classes.
The Menlo Park, California-based company posted a profit of $476 million, or 51 cents per share, for the three months ended September 30, compared with $556 million, or 61 cents per share, a year earlier.
Source: Reuters
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Robinhood reported a 12% increase in revenue for the third quarter, reaching $1.42 billion, which was in line with expectations. However, the company's cryptocurrency revenue fell by 55% to $120 million, contributing to a 14% decrease in profit to $476 million. The stock price of Robinhood Markets (HOOD.O) experienced a significant drop of 5% or more after the market close.
Robinhood reported a 12% increase in third-quarter revenue, meeting expectations, while shares fell 3% due to a shortfall in total transaction revenue. Options and event contracts have become key sources of revenue, with a 500% increase in event contracts revenue and a 31% rise in options revenue. Transaction-based revenue grew 19% to $867 million, driven by an increase in event contracts and options revenue, while cryptocurrency revenue fell 55% to $120 million.