Robinhood crypto revenue falls 55% as Galaxy posts $323M profit

• Robinhood's crypto revenue fell 55% year over year to $120 million, despite record total revenue of $1.42 billion in Q3.
• Robinhood Chain ranked among the top five chains by revenue and volume, recording over $80 billion in DEX volume and $50 million in fees.
• Galaxy Digital reported $323 million in net income, reversing its $85 million Q2 loss, as adjusted EBITDA reached $455 million.

Robinhood (HOOD) on Tuesday reported a 55% YoY decline in crypto revenue in Q3, despite seeing a surge in total revenue.

Robinhood's total revenue hits record $1.42 billion

According to its Q3 earnings release, Robinhood's crypto revenue stood at $120 million in the three months ended September 30. Total net revenue rose 12% YoY to a record $1.42 billion, supported by growth in options trading, equities and event contracts.

Event contracts generated $173 million in revenue, up more than sixfold from a year earlier, while options revenue climbed 31% to $399 million. Equities revenue increased 41% to $121 million, helping offset the decline in cryptocurrency-related income.

On the other hand, Robinhood's net income fell 14% over the past year to $476 million, while diluted earnings per share declined 16% to $0.51. The company attributed $67 million of the net loss to unrealized losses, primarily related to the valuation of Robinhood Ventures Fund I.

“Customers are trusting us with more of their assets as we deliver on our product roadmap, leading to our highest quarter ever for revenues,” Robinhood's Chief Financial Officer Shiv Verma said in the earnings release.

Despite the annual decline, Robinhood's crypto revenue improved from the previous quarter, rising 20% QoQ to $120 million. The company also reported that crypto notional trading volume fell 38% YoY to $50 billion. Robinhood App volumes declined 48% to $21 billion, while Bitstamp volumes fell 28% to $29 billion.

Meanwhile, Robinhood Chain became a top-five chain by revenue and volume during its first quarter on mainnet, generating over $80 billion in decentralized exchange (DEX) volume and more than $50 million in chain fees.

HOOD closed at $94.56, up 1.8% on the day. However, the stock has since fallen more than 7% in after-hours trading.

Galaxy Digital reports $323 million profit in Q3

Galaxy Digital (GLXY) reported $323 million in net income in Q3, bouncing back from a net loss of $85 million in the previous quarter.

Adjusted EBITDA reached $455 million, reversing a $77 million loss in Q2, while adjusted gross profit rose to $569 million from $43 million.

The company's results reflected contributions from its digital asset business, investment portfolio and data center operations. Its Treasury and Corporate segment drove much of the improvement, with $419 million in gross profit, benefiting from higher valuations of digital asset holdings and private investments.

Galaxy's Digital Assets segment also improved, with adjusted gross profit rising to $71 million from $66 million in the previous quarter. Trading volumes increased 12% QoQ, while its average loan book expanded 27% to $1.8 billion.

GLXY closed at $17.18, up 9.5% on the day.