May 8, 2024 - Business

Robinhood sees record revenue, boosted by crypto business

A suit jacket with the Robinhood logo in the lapel pocket.

Illustration: Gabriella Turrisi/Axios

Trading app Robinhood reported record revenue in the first quarter, helped in large part by a surge in cryptocurrency trading.

  • Transaction-based revenue for crypto more than tripled year-over-year.

Why it matters: The trading platform disclosed Monday that it's expecting a lawsuit from the SEC for alleged securities violations posed by its crypto business.

By the numbers: Amid a more favorable market backdrop this year, fees generated by trading Robinhood's 15-odd coins on its platform rose 232% year-over-year to $126 million, according to its quarterly filing.

  • Transaction-based revenue was primarily driven by the crypto business, up 59% year-over-year to $329 million.
  • The crypto boom helped lift total net revenue to a record $618 million, up 40% from the comparable year-ago.
  • Robinhood also posted record net deposits of $11.2 billion, which included "net positive transfers from every major incumbent brokerage firm."
  • Robinhood's stock was up more than 6% in post-market trading.

Zoom out: Robinhood's crypto business tends to swing with the times.

  • In 2021, crypto accounted for 23% of transaction revenue, and 7%, last year.

The big picture: The company that mainstreamed commission-free trading has historically taken a conservative approach to staying in line with regulatory expectations.

  • Now, it appears to be taking a more aggressive stance as the SEC threatens to come for its crypto business, just as that business is taking off again.

What we're watching: Robinhood's hosting an earnings call at 5:00 pm ET.

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