- Robinhood’s Q4 earnings smashed expectations, with a $916 million net income and a 700% surge in crypto revenue.
- Shares jumped 17% in after-hours trading as the company announced plans to expand its crypto offerings.
Robinhood just knocked it out of the park with their latest numbers. They’re not just doing well, they’re crushing it. We’re talking about $916 million in net income. And get this, crypto trading was the star of the show, bringing in a whopping $358 million.
That’s more than half of what they made from all trading combined. It’s their fifth profitable quarter in a row, but this one’s special, it’s their best yet. Wall Street loved what they saw too, sending Robinhood’s stock soaring 17% when the news hit as evidenced by data from Google Finance. A victory lap for a company that started out as the underdog in the trading world.
Crypto Drives Growth
Robinhood’s success in Q4 was largely driven by cryptocurrency trading. Crypto revenue skyrocketed 700% compared to the same period last year, with trading volumes surging over 450% to $71 billion. The company also saw a 75% increase in crypto assets under custody, reaching $35 million.
The broader market also played a role in Robinhood’s strong performance. Increased trading activity across stocks and crypto was fueled by rising market prices and political developments, such as the U.S. presidential election.
Robinhood’s CFO, Jason Warnick, called Q4 a “record-breaking quarter” and highlighted the company’s $1 billion in revenue and $193 billion in assets under custody. He also noted that net deposits grew to $16 billion, reflecting strong customer trust and engagement.
He stated,” For both the quarter and full year, we reached new highs for Assets Under Custody, Net Deposits, Gold Subscribers, Revenues, Net Income, Adjusted EBITDA, and EPS. We’re entering 2025 with strong momentum as we remain focused on delivering another year of profitable growth.”
Expanding Crypto Offerings
Looking ahead, Robinhood plans to expand its crypto services. CEO Vlad Tenev announced that the company is exploring ways to integrate crypto into real-world assets, such as tokenizing private and public companies. He also mentioned plans to introduce crypto staking in the U.S., following its success in Europe.
“The real power of crypto technology is when it’s applied to real-world assets,” Tenev said during an earnings call. Looking at the bigger picture, Robinhood’s hitting their stride. This knockout fourth quarter, combined with their bold moves in crypto, shows they’re not just riding the wave, they’re helping shape it.
Their stock price is climbing, customers are giving them the thumbs up, and with crypto markets heating up, they’re sitting in a pretty sweet spot to make the most of this moment in finance.
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