Robinhood misses quarterly profit estimates as softer crypto activity outweighs robust trading
- On Tuesday, Robinhood Markets, the Menlo Park, California-based company, missed Wall Street profit estimates for the third quarter as slower cryptocurrency trading and higher expenses offset strong activity in options and prediction markets.
- Crypto transaction-based revenue dropped 55 per cent to $120 million, while operating expenses rose 16 per cent to $739 million, driven by credit-loss provisions and investments in Trump Accounts and Rothera.
- Overall transaction-based revenue rose about 19 per cent to $867 million, fueled by a 31 per cent jump in options revenue and a more than sixfold increase in event-contracts revenue.
- The company reported a profit of 51 cents per share, missing the 55-cent Wall Street expectation, causing shares to fall 4.2 per cent in after-hours trading.
- Robinhood CFO Shiv Verma identified prediction markets as a key growth driver, describing the sector as an "almost $500-million-a-year business" that has grown "incredibly nicely" since launching two years ago.
15 Articles
15 Articles
Robinhood misses quarterly profit estimates as softer crypto activity outweighs robust trading
Robinhood Markets missed Wall Street estimates for third-quarter profit on Tuesday, as slower cryptocurrency trading and higher expenses offset strong activity in options and prediction markets.
STOCK MARKET: Robinhood shares fall 5% as crypto slump weighs on profits, offsetting gains in new businesses
Robinhood shares fell in after-hours trading as investors digested a mixed third-quarter report in which transaction-based revenue missed Wall Street expectations despite growth in options trading and prediction markets. Here’s how the brokerage performed in its quarter ended Sept. 30, compared with Wall Street estimates, based on a survey of analysts by LSEG: Earnings per share: 51 cents Revenue: $1.42 billion vs. $1.42 billion expected Robinho…
Robinhood stock dips as venture capital fund-related losses hit Q3 EPS (HOOD:NASDAQ)
Robinhood Markets (HOOD) was trading lower as third quarter earnings missed analyst expectations on unrealized losses related to its venture capital fund, Robinhood Ventures Fund I (RVI).
Robinhood (HOOD) shareholders received a mixed picture in its third-quarter earnings report: Cryptocurrency trading revenue fell by 55 percent compared to the same period last year…
Coverage Details
Bias Distribution
- 60% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
