Robinhood profit misses forecasts as crypto revenue drops

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Robinhood shares fell 8% in pre-market trading on Wednesday after a decline in cryptocurrency trading pushed its third-quarter earnings below analysts’ expectations.

Crypto revenue dropped 55% to $120 million, while earnings per share fell 16% to $0.51, below the $0.55 expected by analysts surveyed by LSEG. Total net revenue increased 12% to $1.42 billion.

Bitcoin has fallen nearly 28% over the past three months as crypto markets faced ETF outflows and shifting expectations for US interest rates. Despite the slowdown in crypto trading, analysts remain optimistic about Robinhood’s broader brokerage business and long-term growth prospects.