Robinhood's Q2 Earnings Show 18% Decline in Crypto Trading Revenue
In its Q2 2023 earnings report, Robinhood (HOOD), the online trading platform known for its crypto-friendly approach, revealed crypto trading revenue of $31 million, representing an 18% decrease from the previous quarter's $38 million.
Despite this decline, Robinhood achieved profitability for the first time since going public.
In Q2, Robinhood's cryptocurrency trading revenue amounted to $31 million, comprising 16% of the total trading revenue of $193 million across all categories, which experienced a 7% sequential decline.
According to the company's quarterly report released on August 2, revenue from cryptocurrency transactions is not the only section affected; other transaction-based revenues also experienced decreases, with options revenue declining by 5% to $127 million and equities revenue declining by 7% to $25 million.
Over the past year, Robinhood's income has dropped by 4%, from $202 million in June of the previous year to $193 million.
The drop in crypto trading comes amid a turbulent state of the overall crypto market, impacted by various events, including the collapse of Terra and FTX and ongoing regulatory challenges.
In June, Robinhood ceased support for tokens listed in the SEC lawsuits against crypto exchanges Binance and Coinbase, such as Cardano (ADA), Polygon (MATIC), and Solana (SOL).
Currently, the trading platform offers 15 different cryptocurrencies, including popular ones like bitcoin (BTC), ether (ETH), dogecoin (DOGE), and avalanche (AVAX).
Despite the challenges in the market, Robinhood reported earnings per share of $0.03 on revenue of $486 million for the second quarter, surpassing analysts expectations, which projected a loss of $0.01 per share on revenue of $473 million.
The company achieved
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