Robinhood’s Profit Explosion: How Crypto Boosted Q4 to $1 Billion

Key Takeaways:

• Robinhood reported record Q4 2024 revenue of $1.01 billion, driven by cryptocurrency growth.
• Net income soared over tenfold year-over-year to $916 million, marking five consecutive quarters of profitability.
• Crypto trading revenues surged 700%, contributing $358 million to the quarterly earnings.

Robinhood truly exceeded expectations with its fourth-quarter earnings for 2024, hitting an impressive milestone of $1.01 billion in revenue. This marks a remarkable 115% increase compared to last year. A big part of this growth came from an extraordinary rise in cryptocurrency trading, which alone brought in $358 million—an increase of over 700% from the previous year.

This robust performance helped Robinhood achieve a net income of $916 million, or $1.01 per share, a more than tenfold increase compared to Q4 2023. CEO Vlad Tenev attributed the success to bold product innovation, including a new platform for active traders, the Gold Card launch, and expanded services in the UK and EU.

Meanwhile, CFO Jason Warnick emphasized the company’s sustained growth momentum as it enters 2025 with strong financials and record-breaking metrics across various segments, such as Assets Under Custody and adjusted EBITDA.

Robinhood Sees Crypto Revenue Surge Over 700%

Cryptocurrency trading emerged as the cornerstone of Robinhood’s financials in Q4 2024, overshadowing all other revenue sources. Transaction-based revenues surged over 200% to $672 million, while options and equities contributed $222 million and $61 million, respectively.

Robinhood’s push into EU cryptocurrency staking and its agreement to acquire Bitstamp further indicate its aggressive push into digital assets. Notional crypto trading volumes surged over 400% year-over-year to $71 billion in Q4.

The company’s general approach of building its international footprint and introducing new products like index options and futures trading is intended to solidify its position as the platform of choice for active traders.

Expands Global Reach and Product Offerings

The company’s Gold subscription offering achieved its strongest growth, with subscribers increasing 86% year-over-year to 2.6 million. Average Revenue Per User (ARPU) doubled to $164, reflecting higher engagement across its user base.

Assets Under Custody were $193 billion, an 88% rise from Q4 2023, as a result of net deposits of $16 billion during the quarter. Robinhood’s growing ecosystem, with the addition of options trading for UK customers and forthcoming expansion into the Asia-Pacific region, is a sign of a healthy scenario for long-term growth in 2025.

Robinhood’s strong Q4 growth is testament to its smooth transition to the dynamics of the market and shows how increasingly important cryptocurrencies are to its top-line mix. With product development at the forefront and international expansion, the firm is poised for another year of steady growth.

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