Robinhood's cryptocurrency transaction revenue fell 55% year-over-year to $120 million in the third quarter, according to the company's earnings report released Tuesday. The figure topped Wall Street analysts' expectations of $114.1 million, even as the firm's overall revenue and earnings per share missed forecasts.
Crypto accounted for just 8.4% of Robinhood's $1.42 billion in total quarterly revenue, down from roughly 21% a year earlier, when crypto transaction revenue was about $267 million.
Trading volume declines across platforms
The drop in revenue came as customers traded less crypto across Robinhood's platforms. Total crypto trading volume fell 38% to $50 billion, comprising:
- $21 billion through the Robinhood app, down 48%
- $29 billion through crypto exchange Bitstamp, down 28%
Broader business grows
The crypto slump contrasted with growth elsewhere in Robinhood's business. Total revenue rose 12% year-over-year to $1.424 billion, short of Street estimates of $1.43 billion, helped by options, equities and prediction markets.
- Options trading generated $399 million in revenue, up 31%
- Equities revenue climbed 41% to $121 million
- Prediction markets brought in $173 million, more than six times the year-earlier figure
Third-quarter EPS of $0.51 came in below consensus forecasts of $0.55. Shares were down about 5% in after-hours trading.
Blockchain business gains traction
Despite weaker crypto trading, Robinhood continued to build out its digital asset business. The company said Robinhood Chain, its blockchain network, processed more than $80 billion in decentralized exchange trading volume and generated over $50 million in chain fees during its first quarter operating on mainnet.
Those fees reflect activity on the blockchain and should not be confused with Robinhood's reported crypto transaction revenue. The company did not disclose how much of the chain fees it recognized as revenue.
