Robinhood Swings to $157M Profit in Q1, EPS $0.18, Crypto Holdings Soar

May 8, 2024, 08:16 PM

Robinhood Markets reported a significant financial turnaround in the first quarter of 2024, posting a net income of $157 million, a stark contrast to the net loss of $511 million in Q1 2023. This profit was supported by a 40% increase in total net revenues, reaching $618 million, and earnings per share (EPS) of $0.18. Key drivers of this growth included a surge in transaction-based revenue, which hit $329 million, greatly exceeding estimates of $255.3 million. Additionally, Robinhood reported $26 billion in cryptocurrencies under custody, reflecting a robust increase in crypto trading volumes, which soared by 224% compared to the previous year. The company's earnings were also bolstered by higher interest rates and an increase in cryptocurrency trading activities. Gold Subscribers reached a new high of 1.7 million, marking the fastest quarterly growth in three years.