Robinhood Achieves Record Q4 Profit with Trump’s Win
Robinhood on Thursday reported a remarkable boost in its fourth-quarter profit, fueled by soaring activity in both equity and crypto markets after Donald Trump won the presidency.
The online trading platform reversed its fortunes over the year, shifting from a loss in 2023 to a profit. As a result, its stock price surged by more than 11% in after-hours trading.
“Q4 was a record-breaking quarter that caps off a record-setting year in 2024,” Robinhood CFO Jason Warnick said in a statement.
Explosive Crypto Gains Propel Transaction Revenue by 200%
Transaction-based revenue surged 200% to reach $672m during the quarter. Notably, nearly 50% of the transaction gains originated from a dramatic surge in crypto trading revenue.
This increase was fueled by Bitcoin’s swift march toward the $100,000 milestone, bolstered by optimistic expectations of supportive policies under the new Trump administration. Specifically, crypto revenue skyrocketed by 700% to $358m.
Meanwhile, options revenue climbed 83% to $222m, and equities revenue increased 144% to $61m.
Robinhood Markets has just released Q4 and full year 2024 earnings results.
Check out the highlights from @vladtenev below, and catch our earnings call live on video for the first time at: https://t.co/W92tO1K8HP pic.twitter.com/CKVJrC8AJQ
— Robinhood (@RobinhoodApp) February 12, 2025
Robinhood Posts First Annual Profit
Further, the company boosted its net interest revenues by 25%, reaching $296m.
Looking ahead to 2024, the online broker marked a major milestone by recording its first annual profit, delivering earnings of $1.56 per share—well above FactSet’s projection of 95 cents per share. This turnaround marks a dramatic shift from a net loss of 61 cents per share in 2023.
In broader market terms, the company’s performance signals a growing acceptance of digital assets in the mainstream investment landscape. Analysts believe such achievements could further solidify the firm’s reputation and attract a new wave of investors eager to participate in a market that’s rapidly evolving.
Robinhood said its assets under custody soared to $193b—a strong 88% year-over-year increase fueled by a steady flow of net deposits and rising valuations in both equities and cryptocurrencies.
Moreover, crypto notional volumes shot up over 400% year-over-year, hitting $71b in Q4 of 2024. Early in the quarter, the firm said it boosted its crypto lineup by introducing seven new assets for US investors and launching Ethereum staking in the EU.
Bitstamp Deal and New Trading Capabilities Set the Stage
Additionally, in a decisive move last June, Robinhood agreed to acquire Bitstamp, the world’s longest-running cryptocurrency exchange serving both institutional and retail clients worldwide. While the deal awaits regulatory clearance and customary closing conditions, it is on track to finalize in the first half of 2025.
Since its debut in Oct. 2024, Robinhood Legend—a desktop platform crafted for active traders—has rolled out almost 30 new indicators while also adding crypto trading capabilities.
During the earnings call, CFO Warnick exuded optimism, noting that the Trump administration’s crypto-friendly regulatory approach stands to propel the industry forward.
“The administration appears very supportive of innovation in the crypto space which I think is going to be great for customers as well as great for the companies like Robinhood,” he said.
Source: cryptonews.com
