55% decline in Robinhood crypto revenue as Galaxy reports $323M profit

• 55% was the year-on-year fall in Robinhood's crypto revenue. The business generated $120 million, even as total Q3 revenue reached a record $1.42 billion.
• With more than $80 billion in DEX volume and $50 million in fees, Robinhood Chain placed among the top five chains for revenue and volume.
• A $323 million net profit marked Galaxy Digital's recovery from an $85 million Q2 loss, with adjusted EBITDA reaching $455 million.

55% was the year-on-year contraction in Robinhood's Q3 crypto revenue. Robinhood (HOOD) disclosed the decline on Tuesday, even as total revenue surged.

$1.42 billion: Robinhood sets total revenue record

In its Q3 earnings statement, Robinhood put crypto revenue for the three months ended September 30 at $120 million. Growth in options trading, equities and event contracts lifted total net revenue 12% year on year to a record $1.42 billion.

Revenue from event contracts exceeded its year-earlier level by more than sixfold, reaching $173 million. Options brought in $399 million, a 31% increase, while equities revenue rose 41% to $121 million. These gains helped counter the fall in cryptocurrency-related income.

Profitability weakened, however. Robinhood's net income dropped 14% year on year to $476 million, and diluted earnings per share fell 16% to $0.51. Of the net loss, the company attributed $67 million to unrealised losses, largely linked to the valuation of Robinhood Ventures Fund I.

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

On a quarter-on-quarter basis, crypto revenue rose 20% to $120 million, contrasting with the annual decline. Crypto notional trading volume, however, contracted 38% year on year to $50 billion, the company reported. Robinhood App accounted for $21 billion after a 48% drop in volume, while Bitstamp volume decreased 28% to $29 billion.

During its first quarter on mainnet, Robinhood Chain entered the top five chains by revenue and volume. It recorded more than $80 billion in decentralised exchange (DEX) volume and over $50 million in chain fees.

After gaining 1.8% during the day, HOOD ended the session at $94.56. The shares subsequently dropped more than 7% in after-hours trading.

$323 million: Galaxy Digital returns to Q3 profit

For Q3, Galaxy Digital (GLXY) posted net income of $323 million, recovering from the previous quarter's $85 million net loss.

From a $77 million loss in Q2, adjusted EBITDA recovered to $455 million. Adjusted gross profit also increased, reaching $569 million against $43 million previously.

Digital assets, the investment portfolio and data centre operations all contributed to the results. Much of the recovery came from the Treasury and Corporate segment, which generated $419 million in gross profit as valuations of digital asset holdings and private investments increased.

Within Galaxy's Digital Assets segment, adjusted gross profit advanced to $71 million from the prior quarter's $66 million. Alongside a 12% quarter-on-quarter increase in trading volumes, the average loan book grew 27% to $1.8 billion.

A 9.5% daily gain took GLXY to a closing price of $17.18.