Robinhood Reports $1.4 B Revenue, $476 M Net Income as Crypto Revenue Falls 55% YoY

Robinhood’s Q3 2024 earnings show total net revenue of $1.4 billion, up 12% year‑over‑year, driven by a surge in event‑contract (prediction market) revenue to $173 million—six‑fold higher than the $27 million in Q2 and surpassing crypto revenue of $120 million. Crypto revenue rose 20% quarter‑on‑quarter but fell 55% YoY, while event‑contract trading hit a record 16.4 billion contracts, up more than seven times the prior year. Net income dropped 14% YoY to $476 million, partly due to $67 million of unrealized losses tied to Robinhood Ventures Fund I. The company’s CFTC‑registered prediction‑market expansion faces potential state‑level enforcement, as the CFTC filed a lawsuit against Utah and other states to block such restrictions. Meanwhile, crypto notional volume declined 38% YoY to $50 billion, with the Robinhood app’s share down 48% and Bitstamp down 28%. The results highlight a shift in Robinhood’s revenue mix toward event contracts, the regulatory uncertainty surrounding prediction markets, and the continued volatility of crypto trading volumes.