Robinhood has reported a 112% year-over-year increase in cryptocurrency trading volume, reaching $14.4 billion in the third quarter of 2024.

However, this surge comes amid a decline in trading activity compared to earlier in the year, with volumes peaking at $36 billion in the first quarter and dropping to $21.5 billion in the second quarter.

Results Fall Short of Analyst Expectations

Despite this slowdown in momentum in 2024, the trading platform experienced growth in its transaction-based revenue. The report indicates that income increased by 72% compared to the previous year, reaching $319 million. Of this, cryptocurrency trading accounted for $61 million, representing a 165% increase compared to last year. However, this figure was down from the $81 million generated in the previous quarter.

Overall, the company reported a net income of $150 million and total revenue of $637 million for the third quarter. However, these results fell short of analysts’ expectations.

The reported earnings per share (EPS) of $0.17 fell short of the Zacks Consensus Estimate of $0.18, while total revenue was 3.6% below the anticipated $661.2 million.

Other parts of Robinhood’s business also showed strong performance. Options trading revenues surged to $202 million, up 63% from the same period last year, and equities trading brought in $37 million, reflecting a 37% increase.

The company also revealed a rise in its Assets Under Custody (AUC). The metric grew by 76% year-over-year to $152.2 billion, fueled by net deposits from users and increased valuations of stocks and cryptocurrencies.

Robinhood Executives Comment on Q3 Results

Vlad Tenev, CEO and co-founder of Robinhood expressed his pride in the results, stat