Robinhood shares fall after earnings as crypto revenue slides 38% in Q4

Shares of Robinhood Markets Inc. experienced a decline in after-hours trading following the release of its fourth-quarter financial results, which highlighted a sharp downturn in cryptocurrency trading activity. The brokerage reported that transaction-based revenue from cryptocurrencies plummeted 38% year-over-year to $39 million, as the broader digital asset market continued to struggle with lower retail participation. While Robinhood’s total net revenue increased 5% to $380 million compared to the previous year—driven largely by a surge in net interest income amid rising interest rates—it was not enough to offset investor concerns regarding the drop in trading volumes. The company posted a net loss of $166 million for the quarter, or 19 cents per share. Despite the challenges in the crypto sector, Robinhood’s management noted progress in their cost-reduction efforts and the launch of new products, including Robinhood Gold and retirement accounts, aimed at stabilizing long-term growth.

Source: Robinhood shares fall after earnings as crypto revenue slides 38% in Q4