TLDR
- Robinhood Q3 crypto revenue surged 339% year-over-year to $268 million with $80 billion in trading volume.
- Company revenue doubled to $1.27 billion, exceeding Wall Street’s $1.2 billion estimate.
- Earnings per share of 61 cents beat analyst predictions of 51 cents.
- New business lines including Bitstamp and prediction markets generate $100 million annually.
- HOOD stock climbed 280% in 2025 but fell 2% after hours following earnings release.
Robinhood Markets posted impressive third-quarter earnings on Wednesday. The company’s crypto trading division led the charge.
Crypto revenue hit $268 million for the quarter. That represents a 339% jump from Q3 2024.
The platform processed $80 billion in crypto trading volume. Robinhood has been aggressively expanding its digital asset services.
Total quarterly revenue reached $1.27 billion. That’s twice the previous year’s figure and beats the $1.2 billion analyst consensus.
Earnings per share came in at 61 cents. That exceeded Wall Street’s 51-cent forecast.
Record Trading Volume Drives Growth
Transaction-based revenues rose 129% to $730 million. Crypto accounted for $268 million of that figure.
The company’s market valuation now sits at $126 billion. That surpasses rival Coinbase in total market cap.
CFO Jason Warnick pointed to strong momentum continuing into Q4. “Record monthly trading volumes across equities, options, prediction markets, and futures,” he noted during the earnings call.
Two new revenue streams are already paying off. The Bitstamp acquisition and prediction markets business generate approximately $100 million in annual revenue combined.
Robinhood closed the Bitstamp deal in June. The acquisition brought regulatory licenses and users across 50-plus countries.
Stock Performance and Future Plans
HOOD shares finished regular trading 4.15% higher at $142.48. The stock has rallied 280% since January.
After-hours trading told a different story. Shares dropped more than 2% below $140 despite the earnings beat.
The stock peaked at $152.46 on October 9. Crypto market volatility has limited gains since then.
CEO Vladimir Tenev outlined expansion plans for prediction markets. “We’ll have our pick of what’s best in each jurisdiction,” he told investors.
Platform Features Expand
Robinhood now offers tokenized stocks alongside traditional crypto trading. The company is targeting both retail traders and institutional clients.
Tenev acknowledged current limitations with tokenized offerings. “They’re actually not on DeFi yet,” he said about interoperability issues.
He expects the crypto community will develop solutions. Bridges and wrappers could improve cross-platform functionality over time.
The platform added prediction markets earlier this year. These markets allow users to trade on future events and outcomes.
October showed particularly strong performance across all product lines. Trading volumes hit records in multiple categories including equities and options.
Third-quarter crypto revenue grew from just $61 million last year. The 339% increase reflects broader adoption of crypto trading on the platform.
The Bitstamp purchase strengthened Robinhood’s international presence. It also added valuable regulatory infrastructure for global expansion.
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