Robinhood reported third-quarter 2024 revenue of $1.42 billion and earnings per share of $0.51, falling short of Wall Street expectations of roughly $1.43 billion in revenue and $0.55 EPS. The shortfall marked a pullback from prior-quarter net income of $573 million to $476 million, a 17% sequential decline.
The earnings report, released Tuesday, revealed a business in transition. Prediction market contracts revenue surged to $173 million in Q3 from $156 million in Q2, while crypto revenue declined 55% year-over-year to $120 million despite a sequential gain from $100 million in the prior quarter. Event contracts traded reached 16.4 billion contracts in Q3, a sevenfold increase from a year earlier.
CEO Vlad Tenev stated in December of the prior year that “I believe we’re at the very beginning of a prediction market supercycle.” That thesis has materialized in trading volume, though revenue growth has not offset crypto headwinds. Year-over-year, net income fell 14% to $476 million from $556 million.
Crypto trading volumes told a mixed story. Robinhood processed $50 billion in crypto trading across its platform in Q3, down 38% year-over-year. Of that total, $21 billion traded on the Robinhood app itself, with $29 billion flowing through Bitstamp, the crypto exchange Robinhood acquired.
Robinhood Chain and Ripple Partnership
Robinhood Chain, a layer-2 network built on Ethereum that launched July 1, 2024, collected $3.13 million in fees over 30 days by the end of August. That output exceeded Ethereum’s $2.47 million in fees over the same period but trailed Base, another layer-2 network, which earned $2.89 million.
Hours before the earnings report, Robinhood announced a partnership with Ripple to integrate RLUSD, Ripple’s stablecoin, into Robinhood Chain and Bitstamp. RLUSD, designed to maintain a $1 value, had a market value of $2.5 billion at the time of the announcement. Ripple will also supply Robinhood’s treasury software and provide lending for Bitstamp traders. In-app rollout of RLUSD on Robinhood’s platform is planned for later in 2024.
Adjusted Metrics and Guidance
Adjusted EPS declined 3% year-over-year to $0.60 per share. The company recorded a $67 million unrealized loss on Robinhood Ventures Fund I, which cost $0.07 per share.
Robinhood revised its 2026 adjusted operating expenses and stock-based compensation guidance to a range of $2.675 billion to $2.75 billion, narrowing from the prior July guidance of $2.675 billion to $2.775 billion.
Robinhood shares closed Tuesday at $94.61, down 18% year-to-date and 37% from a 52-week high of $150.47. The stock decline reflects broader pressure on the trading app, which serves more than 28 million users across stocks, crypto, and event contracts.
