Robinhood’s cryptocurrency trading revenue fell 55% year over year in the third quarter, although it remained above analysts’ forecasts. Meanwhile, the company’s broader blockchain operations continued to expand.
The trading platform reported $120 million in crypto transaction revenue for the quarter, down from approximately $267 million in the same period last year. The result nevertheless exceeded Wall Street’s consensus estimate of $114.1 million, according to the earnings report published Tuesday.
Crypto trading accounted for 8.4% of Robinhood’s total quarterly revenue of $1.424 billion, a significant decrease from roughly 21% a year earlier.
The decline was accompanied by lower trading activity across Robinhood’s platforms. Total cryptocurrency trading volume dropped 38% annually to $50 billion. Volume through the Robinhood app decreased 48% to $21 billion, while Bitstamp, the crypto exchange owned by Robinhood, recorded a 28% decline to $29 billion.
Other business segments support revenue growth
Robinhood’s overall financial performance remained stronger than its crypto trading figures suggested. Total revenue grew 12% from the previous year to $1.424 billion, supported by gains in options, equities and prediction markets. However, revenue came in slightly below analysts’ expectations of $1.43 billion.
Options trading contributed $399 million, representing a 31% annual increase. Equities revenue climbed 41% to $121 million, while prediction markets generated $173 million, more than six times the amount recorded a year earlier.
The company reported earnings per share of $0.51, missing the market consensus of $0.55.
Robinhood Chain records substantial activity
Despite the slowdown in cryptocurrency trading, Robinhood continued to develop its blockchain business.
The company said Robinhood Chain processed more than $80 billion in decentralized exchange trading volume and generated over $50 million in network fees during its first quarter of mainnet operations.
These fees represent transactions conducted on the blockchain and are separate from the crypto transaction revenue reported in Robinhood’s financial statements. The company has not disclosed how much of the network fees was recognized as revenue.
Robinhood shares fell around 5% in after-hours trading following the earnings announcement.
