Robinhood sees crypto activity decline in Q3 2021

Robinhood has released its financial results for the third quarter of 2021. The commission-free broker saw 35% surge in revenue for the quarter, registering $365 million for that period, compared to $270 million last year.

However, the numbers were significantly down compared to the previous quarter when the company registered revenue of $565 million.

Transaction-based revenues were up 32% YoY to $267 million, compared with $202 million during the same period the previous year. Options trading led by bringing $164 million, a 29% increase from last year’s $127 million.

Crypto trading saw $51 million in the third quarter, which is a huge jump compared to last year’s $5 million. However, crypto activity, which was one of the key factors behind the revenue growth last quarter, declined compared to the second quarter of the year when it reached $233 million.


The drop led to considerably fewer new funded accounts and lower revenue in the third quarter of 2021 compared with the second quarter of 2021, according to Robinhood.

The California-based online brokerage remained at a loss with pre-tax loss of $1.37 billion. The net loss stood at $1.32 billion, or $2.06 per diluted share.

The monthly active users, however, increased to 18.9 million in the third quarter, up by 76% YoY from last year and assets under custody jumped 115% YoY to $95 billion.

Vlad Tenev, CEO and Co-Founder of Robinhood Markets, said:

Vlad Tenev, Robinhood

Vlad Tenev
Source: LinkedIn

This quarter was about developing more products and services for our customers, including crypto wallets. More than one million people have joined our crypto wallets waitlist to date. With 24/7 live phone support, we believe that Robinhood is becoming the most trusted and intuitive platform for retail and crypto investors. And looking ahead, we’re committed to delivering tax-advantaged retirement accounts to help everyone invest for the long term.

The results of the quarter were in line with the expectations of the online brokerage with expectation of the season to have further impact on the fourth quarter and lead to lower retail trading activity.

Robinhood Markets said:

We believe this may result in quarterly revenues no greater than $325 million and full year revenue of less than $1.8 billion.

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