MENLO PARK, Calif. Tuesday, May 21, 2024 – Robinhood, the popular stock and cryptocurrency trading platform, reported a surge in cryptocurrency revenue despite facing ongoing enforcement action from U.S. regulators, according to its first-quarter earnings report released on May 8. 1
The company’s overall revenue climbed 40% year-over-year to $618 million, with cryptocurrency transactions driving a significant portion of that growth.
Revenue from cryptocurrencies surged 232% to $126 million, compared to the same period last year.
“Transaction-based revenues increased 59% year-over-year to $329 million, primarily driven by cryptocurrencies,” the company stated in its earnings report.
Robinhood’s net income for the first quarter totaled $157 million, exceeding analyst estimates and marking a significant improvement compared to a loss of $511 million a year earlier.
This growth in cryptocurrency revenue comes as the Securities and Exchange Commission’s (SEC) continues to scrutinize Robinhood’s crypto business practices. The regulatory agency has expressed concerns about the platform’s listing of certain cryptocurrencies and its overall compliance with securities laws.2
While Robinhood has not commented publicly on the specifics of the SEC investigation, the company’s financial results suggest that cryptocurrency trading remains a key driver of its business model, even amidst regulatory uncertainty.
- Robinhood Crypto: https://investors.robinhood.com/news/news-details/2024/Robinhood-Reports-First-Quarter-2024-Results/default.aspx[↩]
- Robinhood Crypto: https://tinyurl.com/2w5t83zk[↩]
