Robinhood Profit Falls as Crypto Revenue Drops 55%

Robinhood Markets reported higher revenue but lower profit for the third quarter, as stronger options and event-contract activity was offset by a sharp year-over-year decline in cryptocurrency revenue. Earnings per share were below analysts’ estimates, while the company’s net income fell 14% to $476 million. Revenue rose 12% from a year earlier to about $1.42 billion. The company reported earnings of 51 cents per share, short of the 55-cent estimate compiled by LSEG. The results were released October 27. Cryptocurrency transaction revenue fell 55% to $120 million, and crypto trading volume declined 38% to $50 billion. The revenue figure was nevertheless higher than the $100 million Robinhood recorded in the second quarter, according to the company figures reported in the quarterly coverage. Those comparisons reflect different periods: the steep decline was year over year, while the increase was quarter over quarter. Other transaction businesses grew. Options revenue rose 31% year over year to $399 million. Event-contract revenue reached $173 million, more than six times its level a year earlier. Robinhood’s overall transaction-based revenue increased about 19% to $867 million,...