Robinhood reports record profit for the fourth quarter

Transaction revenue grew by 200%, with half of the increase driven by a surge in cryptocurrency trading

13.02.2025 - 10:25

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What’s new? Online broker Robinhood has reported a significant rise in Q4 profits, helped by a surge in both the stock and cryptocurrency markets following Donald Trump’s presidential election victory. The platform turned things around for the year, going from a loss in 2023 to a profit. As a result, its share price rose by more than 11% in over-the-counter trading.

The company said in a report that transaction revenue grew 200% to $672 million during the quarter. It is noteworthy that almost 50% of the growth from transactions was generated by a sharp increase in cryptocurrency trading revenue. This performance was driven by bitcoin’s rapid movement toward the $100 000 mark, fueled by optimistic expectations of supportive policies under the new Trump administration. Specifically, cryptocurrency revenue jumped 700% to $358 million. Meanwhile, options income rose 83% to $222 million, and stock income rose 144% to $61 million.

What else is known? From a broader market perspective, the company’s results signal a growing acceptance of digital assets in the mainstream investment environment. Analysts believe such gains could further bolster the firm’s reputation and attract a new wave of investors looking to participate in the rapidly evolving market.

Robinhood said assets under its management soared to $193 billion, up 88% year-on-year, helped by a steady stream of net deposits and rising valuations for both equities and cryptocurrencies.

Moreover, cryptocurrency nominal volumes grew more than 400% year-over-year, reaching $71 billion in Q4 2024. Earlier in the quarter, the company said it expanded its cryptocurrency lineup by introducing seven new assets for US investors and launching Ethereum staking in the EU.

In addition, last June, Robinhood decided to acquire Bitstamp, the world’s oldest crypto exchange serving both institutional and retail customers around the world. The deal is expected to be finalized in the first half of 2025.

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