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Robinhood shares fall 4% as crypto slump weighs on profits, offsetting gains in new businesses

Robinhood shares fall 4% as crypto slump weighs on profits, offsetting gains in new businesses

Robinhood shares fell 4% in after-hours trading as investors digested weaker-than-expected third-quarter earnings 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 vs. 56 cents expected
  • Revenue: $1.42 billion vs. $1.42 billion expected

Robinhood’s net income fell to $468 million, or 51 cents per share, from $556 million, or 61 cents per share, a year ago. Revenue represented a 12% increase from $1.27 billion in the same quarter last year.

Despite that gain, transaction-based revenue of $867 million came in below Wall Street estimates from StreetAccount of $879…

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