Robinhood Profitable For First Time, Crypto Revenue Drops

Robinhood Achieved Profitability for the First Time Since Becoming Public

Despite a decline in revenue in the second quarter of 2023, Robinhood achieved profitability for the first time since becoming public, according to its quarterly report published in August.

The firm reported a net income of $25 million, or earnings per share (EPS) of $0.03, compared to a net loss of $511 million, or EPS of -$0.57, in the first quarter of the year. This was done despite the fall in revenue. The result is due to decreases in overall operating costs during the past three months.

However, cryptocurrency transaction revenue generated by Robinhood decreased by 18% to $31 million, along with other transaction-based revenues.

EBITDA (earnings before interest, taxes, depreciation, and amortization) rose 31% to $151 million. In the most recent quarter, the total assets under custody rose 13% to $89 billion, driven by “higher equity valuations and continued net deposits.”

Meanwhile, the value of Robinhood’s crypto assets under custody rose from $8.431 billion in December 2022 to $11.503 billion in June 2023.