TL;DR
- 700% Surge in Crypto Revenue: Robinhood’s crypto-related revenue skyrocketed to $358 million in Q4 2024, a 700% year-over-year increase, driving its first-ever quarterly revenue surpassing $1 billion.
- Record Financial Performance: Total revenue reached $1.01 billion in Q4, with net income soaring to $916 million and assets under custody jumping 88% to $193 billion.
- Stock Market Boost: Following the earnings release, Robinhood’s shares surged 15.31% in pre-market trading, with the company’s market capitalization nearing $50 billion.
Robinhood Markets Inc. reported unprecedented financial results for Q4 2024, driven by a historic surge in cryptocurrency trading activity. The company’s crypto-related revenue skyrocketed 700% year-over-year to $358 million, fueling its first-ever quarterly revenue surpassing $1 billion. This performance triggered a 17% after-hours stock price surge, propelling shares to near all-time highs.
Record-Breaking Financial Performance
The trading platform’s total revenue reached $1.01 billion in Q4, shattering its previous record of $682 million. Crypto transactions accounted for over half of Robinhood’s $672 million in total transaction-based revenue, eclipsing earnings from equities ($61 million) and options ($222 million).
Net income soared to $916 million—a tenfold increase—marking the fifth consecutive profitable quarter. Assets under custody jumped 88% year-over-year to $193 billion, while net deposits hit $16 billion.
Stock Market Rally and Market Cap Milestones
Robinhood’s shares surged 15.31% in pre-market trading following the earnings release, reaching $66 during after-hours sessions—just shy of its 2021 peak.
The rally extended gains triggered by President Donald Trump’s electoral victory, which had already boosted HOOD’s valuation. The company’s market capitalization now approaches $50 billion, a dramatic recovery from its 2022 low below $7 per share.
Crypto Market Tailwinds
The revenue explosion coincided with a crypto market boom in Q4 2024. Bitcoin’s climb above $100,000 and altcoin rallies drove Robinhood’s crypto trading volume to $71 billion—nearly matching the combined total of the previous three quarters. The platform’s commission-free crypto trading model and expanded token offerings attracted both retail and institutional investors.
Strategic Expansion Plans
CEO Vlad Tenev announced plans to broaden Robinhood’s crypto services, particularly in RWA tokenization. CFO Jason Warnick emphasized that 2024 marked “a record year,” with crypto becoming central to the company’s growth strategy. The firm continues to capitalize on regulatory clarity and mainstream adoption of digital assets.
Robinhood’s turnaround from its 2022 struggles underscores crypto’s growing influence in traditional finance. With cryptocurrency now accounting for 35% of total revenue, the platform has successfully pivoted from meme-stock notoriety to becoming a major player in digital asset markets.
