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Robinhood doubles revenue as it beats third-quarter earnings expectations

Robinhood doubles revenue as it beats third-quarter earnings expectations

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Robinhood beat Wall Street expectations for the third quarter on Wednesday, extending a hot streak that has made it one of the biggest large-cap U.S. tech stocks this year.

Here is how Robinhood’s results compared to Wall Street estimates, according to analysts surveyed by LSEG:

  • Earnings per share: 61cents vs. 53 cents expected
  • Revenue: $1.27 billion vs. $1.19 billion expected

Revenue doubled year-over-year, while net income climbed to $556 million, or 61 cents per share, up significantly from the same quarter last year, when the company posted net income of $150 million, or 17 cents per share.

Transaction-based revenue, which is a proxy for trading activity, came in at $730 million, below StreetAccount’s $739 million estimate. 

“Q3 was another strong quarter of profitable growth, and we continued to diversify our business, adding two more business lines — Prediction Markets and Bitstamp — that are generating approximately $100 million or more in annualized revenues,” finance chief Jason Warnick said in the release.

Robinhood is closing the gap with Coinbase as it pushes beyond retail trading into full-scale wealth management. The company has been aggressively offering deposit matches to lure clients from Fidelity and Schwab, and assets under management have grown with its TradePMR acquisition.

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Robinhood year-to-date stock chart.

Robinhood shares pop more than 4% in overtime on earnings beat



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