Robinhood stomped past earnings estimates for the fourth quarter on Wednesday as revenue more than doubled. On Thursday, Robinhood stock soared to a new high.
"Q4 was a record-breaking quarter that caps off a record-setting year in 2024," said Robinhood CFO Jason Warnick in an earnings release.
For the full year, the disruptive online broker swung to a profit from a loss in 2023.
Robinhood Earnings And Outlook
For Q4, Robinhood posted EPS of $1.01, crushing FactSet consensus views for 42 cents. Revenue of $1.01 billion also easily beat estimates for $945.8 million. Year over year, Robinhood earnings soared more than 3,200% and revenue surged 115%.
Transaction-based revenues jumped 200% to $672 million. That included cryptocurrencies revenue of $358 million and up more than 700%; options revenue of $222 million and up 83%; and equities revenue of $61 million, up 144%.
Net interest revenues increased 25% to $296 million, the company said.
For 2024, the upstart online broker delivered its first yearly profit, at $1.56 per share vs. views for 95 cents, FactSet shows. That compared to a net loss of 61 cents a share in 2023.
Robinhood said it is not providing an outlook for operating expenses in 2025. In terms of Robinhood's earnings outlook for 2025, analysts now expect a 14% decline to $1.34 against tough comparisons, FactSet shows.
Robinhood Stock Soars To New High
Shares of Robinhood stock rocketed 14.1% to 63.80 in Thursday's stock market action. They hit a 52-week high intraday.
HOOD stock ended Wednesday's session well into a profit-taking zone after a September breakout. It has rebounded twice from its 10-week line since the breakout, and is not far from all-time highs that came soon after its 2021 debut, the MarketSurge chart shows. There is no new buy point for now.
The relative strength line is already at all-time highs. A rising RS line, the blue line in the chart provided, shows that a stock is outperforming the S&P 500.
Coinbase stock jumped nearly 9% on Thursday and extended gains in late trading.
Coinbase Global delivered a big earnings beat Thursday after the market close. Charles Schwab fell further below a 83.25 flat-base buy point on Thursday. CBOE Global Markets continues to work on a 221.66 buy point after an earnings miss in early February, still 6% below the entry.
Coinbase Earnings: Analysts Hike Targets, Expect Triple-Digit Growth
Analysts Hike HOOD Stock Targets After Earnings
After the Robinhood earnings report for Q4, 10 analysts raised price targets on Robinhood stock, FactSet shows. No one cut.
Robinhood's multiple-growth drivers include its cryptocurrency business, analysts say. They see President Donald Trump's pro-crypto views and the growth of bitcoin ETFs as catalysts ahead. In Q4, President Trump's November election win helped to spur a bitcoin and crypto rally.
That crypto rally to highs fueled a 440% gain for Robinhood stock in the past year. Buoyant stock markets also helped the disruptive online broker's earnings.
A new Mizuho survey shows an interest in sports betting among Robinhood app users, which could become a new avenue of growth.
Please follow Aparna Narayanan on X @IBD_Aparna for more coverage.
