Robinhood shares surge as Q4 crypto revenue jumps 700%

Robinhood shares rose 17% in after-hours trading as its Q4 earnings beat consensus estimates and cryptocurrency revenue jumped 700% year-on-year.

The $916 million net income that Robinhood reported in its Feb. 12 results statement marked its fifth consecutive profitable quarter, beating consensus estimates by over 9%.

Crypto revenue reached $358 million, accounting for over half of Robinhood’s $672 million transaction-based revenues — which increased over 200% year-on-year. Crypto trading volumes increased over 450% year-over-year to $71 billion.

“Q4 was a record-breaking quarter that caps off a record-setting year in 2024,” said Robinhood chief financial officer Jason Warnick, pointing to the company’s $1 billion revenue, $16 billion in net deposits, and 88% year-on-year increase in assets under custody to $193 billion.

Crypto assets under custody also increased 75% quarter-on-quarter to $35 million, while crypto trading volumes were up around fivefold compared to Q4 2023 and Q3 2024.

The broader market saw increased trading activity across the board in Q4, fueled largely by US President Donald Trump’s election win and rising market prices.

Robinhood (HOOD) shares rose 4.82% during the Feb. 12 trading session to $55.90 and then climbed another 17.1% after the firm posted its Q4 results after-hours, Google Finance data shows.

Related: Inside Trump’s crypto agenda: Memecoins, SEC task force and Bitcoin reserve plans

Last June, Robinhood agreed to acquire the Bitstamp crypto exchange in a $200 million deal that would enable it to serve institutional investors in the United States.

The deal is still subject to regulatory approval and is expected to be finalized in the first half of 2025.

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