Finance
Robinhood shares rise after record profits
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Shares of Robin Hood rose in extended trading Wednesday afternoon after the retail brokerage announced stronger-than-expected first-quarter results.
Robinhood reported first-quarter net income of $157 million, or 18 cents per share. That’s a positive change from the same period last year, when the company posted a net loss of $511 million, or 57 cents per share.
Here’s how Robinhood’s results compare to Wall Street estimates, according to analysts surveyed by LSEG:
- Earnings per share: 18 cents versus 6 cents expected
- Revenue: $618 million versus $549 million expected
The company said earnings per share and revenue figures were both records for the company. The share rose more than 5% in after-hours trading.
Robinhood rose in popularity during the Covid pandemic in 2020 and 2021, but has since seen user activity and revenue that mirrors the action in the broader market. Stocks and cryptocurrencies rose during the first quarter, likely helping the company’s results.
Cryptocurrency transactions accounted for $126 million in revenue in the quarter, the company said.
Regulatory uncertainty has clouded the future of this company. Robinhood announced Monday that the Securities and Exchange Commission had issued a Wells Notice to the company, indicating potential legal enforcement actions against the company’s cryptocurrency business.
Dan Gallagher, Robinhood’s chief legal, compliance and corporate affairs officer, said in a blog post that the company was “disappointed” in the SEC’s decision and still believes the crypto assets on its platform are not legal securities.
Robinhood said the number of funded customers rose by 810,000 year over year to 23.9 million. According to the press release, assets under custody increased 65% year-over-year to $129.6 billion.
Shares of Robinhood were up nearly 40% year to date ahead of Wednesday’s earnings announcement.
Read the full earnings release here.
Correction: An earlier version of the story misstated the date of Robinhood’s quarterly report.
