Robinhood’s · experienced a significant decline in its cryptocurrency trading segment for the third quarter, witnessing a 55% decrease compared to the previous year, yet surpassing market expectations.
According to the company’s earnings report that was published on Tuesday, revenue from crypto transactions fell to $120 million during the third quarter. This was a drop from approximately $267 million in the same timeframe last year, although it beat the analysts’ projection of $114.1 million.
As a result, cryptocurrency contributed only 8.4% to Robinhood’s total quarterly revenue of $1.42 billion, down from around 21% a year prior.
The reduction is attributed to a decline in customer activity regarding crypto trading on Robinhood’s platforms. The overall crypto trading volume decreased by 38% to $50 billion, which included $21 billion processed through the Robinhood app, reflecting a 48% drop, and $29 billion via the crypto exchange Bitstamp, a 28% decline.
This decrease in crypto revenue contrasts with the overall performance of Robinhood’s business. Total revenue grew by 12% year-over-year, reaching $1.424 billion, driven by increased activity in options, equities, and prediction markets. Analysts had anticipated total revenue of $1.43 billion.
Revenue from options trading climbed to $399 million, a 31% rise, while equities revenue increased by 41% to $121 million. The prediction markets also showed remarkable growth, bringing in $173 million, which is over six times higher than the figure from the previous year.
However, the third-quarter earnings per share (EPS) of $0.51 fell short of the expected $0.55.