Market Data 
Robinhood has reported a record-high revenue for the fourth quarter, at $1.01 billion, a 37% quarterly increase. This was primarily due to a massive increase in cryptocurrency transaction fees in the current quarter, which stood at $358 million, a 491% increase from the previous quarter.
The increase in crypto revenue also brought a new interest in retail investing in digital assets. Robinhood’s highest cryptocurrency trading revenue of $233M was recorded in 2021, mainly due to DOGE trading. This notional volume was established in Q4 2024, and it was 400% higher than the volumes recorded in the previous year.
Robinhood expanded its offerings, adding 7 new cryptocurrencies for its users in the United States, as well as Ethereum staking in the European Union. This decision reflects its general goals of targeting a steadily expanding audience of retail and institutional investors in cryptocurrencies.
Strong financial performance and market response
Notably, the company reported a net income of $916 million, well above analyst expectations. This impacted the company’s stock price, leading to a 7% increase in its shares to $60 in after-hours trading after the earnings report. The shares’ value has been soaring since the beginning of 2024, registering a 360% increase.
The Assets Under Custody (AUC) also grew 88% to $193 billion yearly. This was attributed to steady net deposits and higher equities and cryptocurrency valuations.
In June 2024, Robinhood announced plans to acquire global crypto exchange Bitstamp, pending regulatory approvals. The acquisition is expected to be finalized in the first half of 2025, positioning Robinhood for deeper institutional market penetration.
Additionally, Robinhood revealed in June 2024 that it planned to buy global crypto exchange Bitstamp, pending regulatory approvals. The acquisition is expected to be completed in the first half of 2025, allowing Robinhood to penetrate the institutional markets better.
Robinhood also expanded its trading products beyond cryptocurrencies. The company launched index options for all users and in-app futures trading, offering products across stocks, energy, currencies, metals, and crypto. In addition, Robinhood Legend, the desktop platform for active traders launched in October 2024, has seen the addition of nearly 30 new indicators and expanded to the crypto side.
Regulatory challenges
While Robinhood’s Q4 was solid financially, the company faced regulatory headwinds. The Commodity Futures Trading Commission (CFTC) ordered Robinhood Derivatives to suspend its sports event contracts.
As a result, it decided to stop the rollout of the Pro Football Championship market that it had opened to a limited number of users. In addition, the company said it is committed to cooperating with regulators to make sure it is compliant.
Robinhood’s reported performance comes amid a broader crypto market rally. Several altcoins posted major gains, while Bitcoin hit $100,000 for the first time in Q4.
