Robinhood Sets Revenue Record as EPS Misses Estimates

Robinhood reported record third-quarter revenue of $1.42 billion, but earnings per share fell short of analyst expectations as a steep annual decline in crypto revenue weighed on results. The company’s shares dropped in after-hours trading following the October 27 release. Revenue rose 12% from a year earlier, while net income declined 14% to $476 million. Diluted earnings per share were 51 cents, compared with analyst estimates reported in the range of about 54 to 57 cents. The company said a $67 million paper loss on Robinhood Ventures Fund I affected earnings; the fund holds stakes in private companies and is revalued quarterly. Crypto revenue was $120 million, down 55% year over year, and crypto trading volume fell 38% to about $50 billion. The revenue figure was nevertheless up 20% from the second quarter. Robinhood Chain generated $26 million in its first quarter on mainnet, according to the company’s results. Excluding that amount, crypto transaction revenue was $94 million, down 6% from the previous quarter. Growth in other transaction businesses helped offset the crypto decline. Event contracts generated $173 million in revenue, more than six times the year-earlier...