The brokerage also gave a bleak outlook for the rest of 2021. 'We question the ability of the company to generate competitive margins over time given the focus on such small accounts that have limited room to be profitable,' JPMorgan analyst Kenneth Worthington told clients. Monthly active users totaled 18.9 million, down from 21.3 million in the second quarter. The company also saw a slowdown in user growth. Wall Street was expecting a loss of $1.37 per share, according to Refinitiv. Robinhood reported a net loss of $1.32 billion, or $2.06 per share. The brokerage currency currently offers seven coins. It's gonna be impossible for us to accurately predict.revenue on a quarter-to-quarter basis.'Īnd it may be harder for the brokerage app to ride the next hot crypto coin like Doge if one should get hot before year-end. Robinhood CEO Vlad Tenev said on the call the company is going to wait for regulatory clarity on crypto before adding more digital coins to the platform. It's a great way to bring a lot of new customers onto the platform but we're really thinking about investing in crypto over the long term.

The second quarter was 'one of those idiosyncratic market events where there's this massive interest specifically in Doge,' Robinhood CFO Jason Warnick told CNBC. Revenue from crypto trading totaled $233 million in the second quarter, helped by interest in meme-inspired dogecoin. Third-quarter transaction based revenue totaled $267 million, with only $51 million coming from cryptocurrency trading. This was well below the second quarter's revenue of $565 million, which was bolstered by a massive surge in crypto trading. Revenue was dragged down by a slowdown in crypto trading and Robinhood warned that the headwinds in trading will persist into year-end.įor the third quarter, total net revenue came in at $365 million, missing a Refinitiv estimate of $431.5 million. The decline came after Robinhood missed on the top and bottom lines of its third quarter results.

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