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Robinhood Q1 Revenue Up 16%, But Not In Crypto

Robinhood to Pay Over $10 Million in Penalties to Numerous US States for Harming Investors

In Q1 2023, Robinhood, the stock and crypto investing app, reported a net revenue of $441 million, which is a 16% increase from the previous quarter.

However, the company’s crypto revenue declined by 1% to $38 million, which is also 30% down year over year from $54 million in Q1 2022 when digital asset values were higher.

Crypto Down, Interest Up

According to the company’s first-quarter results report on Wednesday, Robinhood’s transaction-based revenues rose by 11% quarter over quarter to $207 million, with an increase of 7% in options revenue to $133 million and a 29% increase in equities revenue to $27 million.

Although digital asset and tech stock values declined due to rate hikes from the Federal Reserve, Robinhood’s interest revenue increased by 25% to $208 million. Furthermore, the company launched its 24-Hour Market, providing 24/5 trading access to popular ETFs and individual stocks like TSLA, AMZN, and AAPL.

“We grew revenues four quarters in a row while getting to a leaner operating model,” said Jason Warnick, Chief Financial Officer of Robinhood Markets. “At the same time, we delivered new products and features that led to outsized improvements in customer satisfaction.”

Robinhood Partners With Self-Custodial Wallets

Although Robinhood announced several layoffs last year due to overhiring, the company is continuing to develop crypto-related products. In April, Robinhood announced new integrations with specific self-custodial wallet providers that enable users to buy cryptocurrencies directly from their own wallets.