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Shares Robin Hood rose in extended trading Wednesday afternoon after the retail brokerage announced stronger-than-expected first-quarter results.
Robinhood reported net income of $157 million, or 18 cents per share, for the first quarter. This is an improvement from the same period last year, when the company had a net loss of $511 million, or 57 cents per share.
Here’s how Robinhood’s results compare to Wall Street estimates, according to analysts surveyed by LSEG:
- Earnings per share: 18 cents vs. expected 6 cents
- Income: $618 million vs. expected $549 million
The company said earnings per share and revenue were records for the firm. Shares jumped more than 5% in after-hours trading.
Robinhood grew in popularity during the Covid-19 pandemic in 2020 and 2021, but since then, user activity and earnings have reflected action in the broader market. Stocks and cryptocurrencies rose in the first quarter, which likely helped the company’s results.
Cryptocurrency transactions generated $126 million in revenue for the quarter, the company said. Regulatory uncertainty has clouded the future of the business. Robinhood said Monday that the U.S. Securities and Exchange Commission has issued a Wells Notice to the company, signaling possible enforcement action against the company’s cryptocurrency business.
Dan Gallagher, Robinhood’s chief legal, compliance and corporate affairs officer, said in a blog post that the company is “disappointed” by the SEC’s decision and continues to believe that cryptoassets on its platform are not legally securities.
Robinhood said the number of funded customers rose 810,000 year over year to 23.9 million. Assets under custody grew 65% year over year to $129.6 billion, according to the press release.
Robinhood shares are up nearly 40% year to date before Wednesday’s earnings announcement.
Read the full earnings report here.
Correction: A previous version of the story misstated the date of Robinhood’s quarterly report.