Robinhood stomped past earnings and revenue estimates for the fourth quarter on Wednesday after the close. In late trade, Robinhood stock jumped again.
"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 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 3,000% 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 expect a further 23% increase to $1.17, FactSet shows.
Robinhood Stock Soars Late
Shares of Robinhood stock popped nearly 5% in Wednesday's stock market action. Robinhood stock extended gains by more than 10% in extended trading
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 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 trending higher as the online broker outpaces the market. A rising RS line, the blue line in the chart provided, shows that a stock is outperforming the S&P 500.
Coinbase stock fell on Wednesday.
Coinbase Global is set to report Thursday after the close. Charles Schwab continues to test a buy point on buyback news. CBOE Global Markets is nearing a buy point despite an earnings miss in early February.
Coinbase Earnings: Analysts Hike Targets, Expect Triple-Digit Growth
What To Watch In HOOD Earnings
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.
The bitcoin and cryptocurrency rally to highs fueled a 365% leap 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 users.
Investors may watch for mention of that new opportunity on the earnings call. And Robinhood may update on its acquisition of TradePMR, which opened up a new front in the upstart broker's challenge to Fidelity's and Schwab's RIA (registered investment advisor) business.
Please follow Aparna Narayanan on X @IBD_Aparna for more coverage.
