Robinhood’s Crypto Revenues Soar 300%, Smashing Wall Street Expectations

According to reports, Robinhood Markets posted a surprise surge in crypto income that helped lift its third-quarter results above Wall Street forecasts.

Total revenue for the three months ended Sept. 30 rose to $1.27 billion, double what the company reported a year earlier. That beat analysts’ $1.2 billion estimate.

Robinhood: Crypto Sales Drive A Big Part Of The Gain

The firm said crypto trading produced nearly $270 million in the quarter, a jump of more than 300% from a year earlier.

Transaction-based revenue overall grew almost 130% to $730 million, and earnings per share climbed close to 260% to $0.61, topping the $0.51 analysts had pegged.

These figures show how much movement in crypto trades can change quarterly results for Robinhood.

New business lines are starting to matter. Jason Warnick, Robinhood’s finance chief, told investors that Bitstamp, which Robinhood bought in June, and the company’s prediction markets are producing roughly $100 million or more in annualized revenue. That contribution is already being factored into the company’s growth story.

Strategic Push Into Crypto Products

Once known mainly for free stock trades, the company has been broadening its product mix. It now offers tokenized versions of shares and prediction market trading, and it completed the Bitstamp deal as part of that push.

Reports show executives see room to expand access to prediction markets globally, though they say rollout will depend on local rules.

CEO Vladimir Tenev also discussed how tokenized stock offerings work today and what might change. He said those products are “not as interoperable as we would like” because they are not yet on DeFi, but he expects more interoperability over time as developers build bridges and wrappers.

That path, he argued, could make tokenized assets easier to move between networks and services.

On the day of the report, Robinhood shares rose 4% to $142 in regular trading, but slipped back to under $140 after the market closed.

The stock has already gained more than 280% so far this year and reached an all-time high of $152 on Oct. 9 before a later crypto market sell-off cooled momentum.

The numbers create a mixed picture for investors. Strong top-line gains are clear. But the business is tied closely to crypto volume, which can be volatile.

Revenue from newer units like Bitstamp and prediction markets is becoming material, but regulators and market swings could change that math quickly.

Analysts will be watching whether crypto revenue stays at these elevated levels, and how regulators respond to expanded tokenized offerings.

For now, Robinhood’s shift toward crypto and related services is visible in the results. The firm reported big gains, and those gains are being driven by customers trading crypto and by a couple of recently acquired or launched businesses that are already bringing in significant revenue.

Featured image from Unsplash, chart from TradingView