Robinhood Reports Net Loss, Decline in Active Users, Shares Drop

Robinhood (NASDAQ: HOOD) has posted Q3 earnings results, and the company reported net revenues of $467 million an increase of 29% when comparing the same period last year. At the same time, Robinhood booked a net loss of $85 million or an EPS of -$0.09, compared to a net loss of $175 million or an EPS of -$0.20 in Q3 2022.

Transaction revenues based on crypto cratered by a whopping 55% to $23 million and equities dropped by 13% to $27 million.

Net interest revenue, driven by high-interest rates, jumped by 96%  to $251 million.

Net Deposits were $4.0 billion, which translates to an annualized growth rate of 18%.

Robinhood’s Monthly Active Users (MAU) decreased 16% year-over-year to 10.3 million.

Vlad Tenev, CEO and Co-Founder of Robinhood Markets, said his company is just getting started when commenting on their financial results. His said his company remains focused on providing industry-leading products that serve customers’ needs while expanding internationally.  Robinhood is expected to soon launch operations in the UK. with crypto trading made available in the UK as well as the EU.

Shares in Robinhood took a hit in post-market trading following the release. As of this writing, Robinhood shares are down by over 7%.

Robinhood’s 52-week high is over $13. It is currently trading at a bit over $9 but far off its all-time high of over $44/share.

Robinhood has been buying back shares, which should be providing some support for share price. During Q3, Robinhood purchased 55.3 million shares or around 7% of shares outstanding.

Robinhood held about $4.9 billion in cash and cash equivalents at the end of the quarter, a decline from $6.2 billion at the end of Q3 2023

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