Robinhood’s Q4 Earnings Report

Robinhood, the commission-free brokerage firm, reported fourth-quarter earnings Wednesday afternoon, reflecting retail traders’ continued appetite for crypto amid the November elections and Bitcoin’s rise to $100,000.

Crypto Trading Growth

Crypto trading volume grew 400% year-over-year to $70 billion, while equity trading volume rose 154% to $423 billion. Notably, crypto trading volume had steadily dropped throughout the year, with figures of $36 billion in Q1, $21.5 billion in Q2, and $14.4 billion in Q3.

Revenue Increase

Robinhood’s transaction-based revenues increased 200% from last year to $672 million, with cryptocurrency trading contributing $358 million (up 700%) and equities generating $61 million (up 144%). Additionally, Robinhood noted the addition of seven crypto assets in the U.S. and the launch of Ethereum staking in the EU since the start of Q4.

Future Plans

CEO Vlad Tenev mentioned in December that there had been discussions about holding Bitcoin, but the company did not plan to maintain a BTC reserve. Recently, Robinhood teased futures trading for Bitcoin, oil, and gold.

Assets Under Custody

The company’s assets under custody (AUC) rose 88% year-over-year to $193 billion, driven by ongoing net deposits and increased valuations of stocks and cryptocurrencies. AUC represents the total value of all equities, options, cryptocurrencies, and cash held in user accounts, minus any receivables owed by users.

Earnings and Revenue

Robinhood reported fourth-quarter diluted earnings of $1.01 per share, up from last year’s $0.03 per share. Quarterly revenue came in at $1.01 billion, slightly below the expected $944 million.

Looking Ahead

“We hit the gas on product development in 2024 with a new platform for active traders, Gold Card launch, an expanded UK and EU product suite, and much more,” Vlad Tenev stated in a press release. “We see a huge opportunity ahead of us as we work toward enabling anyone, anywhere, to buy, sell, or hold any financial asset and conduct any financial transaction through Robinhood.”

Tenev also wrote an op-ed in January for the Washington Post, urging the SEC to clarify rules for how early-stage startups can tokenize their equity. He noted, “Finally, the U.S. is making up for lost time and taking crypto seriously. So many promising strides forward. It’s time to even further expand our understanding of what’s possible.”