Robinhood’s Crypto Revenue Misses Estimates Despite Overall Earnings Beat
- ByStartupStory | November 6, 2025
Robinhood Markets Inc., the popular online brokerage catering to retail investors, posted mixed third-quarter 2025 financial results, with cryptocurrency revenue falling short of analyst expectations amid a broader earnings beat.
The company reported that crypto trading revenue for the quarter rose sharply by 300% year-over-year to $268 million. However, this figure narrowly missed Wall Street forecasts, resulting in cautious investor reactions despite strong performance in other segments.
Overall, Robinhood’s total revenue doubled year-over-year to $1.27 billion, driven by a 129% increase in transaction-based revenues reaching $730 million. Earnings per share jumped to $0.61, a significant increase from $0.17 in the prior year, supported by a net income of $556 million—one of the firm’s most profitable quarters.
Transaction growth was powered primarily by crypto and options trading, with Robinhood’s crypto trading volumes surpassing $80 billion during the quarter. Although crypto revenues lagged slightly behind expectations, the company’s broader diversification into prediction markets, stock trading, and digital assets bolstered overall financial results.
Robinhood’s recent acquisition of cryptocurrency exchange Bitstamp and expansion into Europe have strengthened its reach and product offerings, including staking and perpetual futures. CFO Jason Warnick highlighted these new revenue streams now generate around $100 million annually, reflecting the firm’s ongoing shift toward diversified fintech services beyond traditional trading.
CEO Vlad Tenev emphasized the company’s strategy to leverage mass distribution and partnerships rather than vertically integrating prediction markets, maintaining a competitive edge through large-scale retail customer access across the U.S.
Despite robust earnings, Robinhood raised its 2025 operating expense guidance to about $2.28 billion, up from previous estimates, signaling investment in crypto, tokenized assets, and global market expansion will continue.
In summary, although Robinhood’s Q3 crypto revenue slightly missed Wall Street estimates, the company posted strong overall earnings and sustained growth across multiple segments. Its evolving business model and strategic acquisitions position Robinhood well to consolidate its place as a leading fintech and crypto platform amid dynamic market conditions.
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