Robinhood’s latest quarterly earnings, reported on Monday, were disappointing at best: the brokerage reported a massive revenue miss for the third quarter.
Robinhood reported a net loss of $1.32 billion, or $2.06 per share, on $365 million in total net revenues. The majority of their revenue came from options trading, which was worth $164 million (44.9% of revenue). Crypto trading represented $51 million (14% of revenue) and was up 860% YoY. Equities trading, formerly the bulk of Robinhood’s business, saw $50 million (13.7% of revenue). However, equities revenue was down 27% YoY.
Equities and options aside, Robinhood has been leaning into its future in crypto. The company plans to offer crypto wallets, a tool that allows investors to send and receive digital currencies. More than one million people have joined the crypto wallets waitlist to date. There’s just one problem: the app has seen much better quarters for crypto transaction revenue.
Last quarter, they did $233 million in crypto revenue, boosted in-part by memecoin $DOGE.X, which represented a significant portion of the company’s revenue. Investors have moved on to new, shiny things… so maybe it’s fair to say that having a brokerage business that relies on memecoins isn’t the most sustainable one?
“Looking back at Q2, we saw a huge interest in crypto, especially Doge, leading to large numbers of new customers joining the platform and record revenues,” said Robinhood chief executive officer Vlad Tenev.
$HOOD slumped 12% on the news, trading down to $34.20 intraweek. On Friday, it closed at $34.97, which was still well below its $38 IPO price.