Crypto Trading Boom Sends Robinhood’s Revenue Past $1 Billion

Robinhood finished 2024 on a high note, thanks to its $1 billion growth in the fourth quarter, which exceeded analysts’ estimates. The company’s fourth-quarter revenue hit $1.01 billion, beating analysts’ estimates of $940.8 million. Also, Robinhood’s crypto trading volume surged by 700%, banking $358 million.

As Bloomberg and other media outlets reported, the popular brokerage was buoyed by interest in the crypto market during the US election cycle. The company’s fourth-quarter revenue was $1.01 billion, beating analysts’ estimates of $940.8 million.

Robinhood Benefitted From Surge In Crypto Trading In Q4

According to a Bloomberg report, Robinhood saw a surge in crypto trading in the fourth quarter of 2024. The company’s crypto trading volume increased by 700%, reflecting a total revenue of $358 million.

Robinhood’s impressive fourth-quarter performance compensated for its poor third-quarter performance with $14.4 billion in revenues, a massive drop from the first quarter’s $36 billion.

The company benefited from increased trading activity in the last quarter of the year, fueled by enthusiasm over the results of the US elections. This was also the time when Bitcoin surged past the $100k mark.

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Robinhood Expands Cryptocurrency Offerings

Robinhood expanded its cryptocurrency offerings by adding seven new tokens for its US customers to address the growing market demands. It also launched its ETH staking services for customers based in the European Union.

The popular brokerage also expanded its services in Spain, complying with the latest EU’s MiCa regulations. Robinhood now boasts cryptocurrency trading staking and supports viral digital assets like the TRUMP coin.

According to CEO Vlad Tenev, the company focused on its product development in 2024. In a statement, Tenev shared that it found an opportunity and now offers its customers a secure way to trade or hold digital assets.

BTCUSD trading at $96,811 on the daily chart: TradingView.com

A Streak Of Profitable Quarters

Robinhood continues to grow its profitability, extending its streak to a fifth quarter of net positive income. The company’s fourth-quarter results beat last year’s net income at $0.03 per share. Also, Robinhood’s diluted earnings per share increased to $1.01, reflecting strong financial performance.

The brokerage ends the year with $193 billion in total assets under custody (AUC), an 88% increase from last year. Robinhood’s growth in total assets was supported by increased valuations in digital assets and equities, including the growing net deposits from customers.

Also, the company’s equity trading value surged to $423 billion in the quarter, a 154% increase from last year. The reported increase in income makes Robinhood one of the best-performing retail trading platforms for the quarter.

Featured image from Gemini Imagen, chart from TradingView