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Robinhood shares rose in extended trading Wednesday afternoon after the retail brokerage reported stronger-than-expected first-quarter results.
Robinhood reported net income of $157 million, or 18 cents per share, in the first quarter. This is a positive swing 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. 6 cents expected
- Revenue: $618 million vs. $549 million expected
The company said the earnings per share and revenue numbers were record highs for the company. The stock jumped more than 5% in after-hours trading.
Robinhood’s popularity soared during the Covid pandemic in 2020 and 2021, but has since seen user activity and revenue that mirrors the action in the broader market. Stocks and cryptocurrencies rose during the first quarter, which likely helped the company’s results.
The company said cryptocurrency transactions generated $126 million in revenue in the quarter.
Regulatory uncertainty has clouded the future of this work. Robinhood revealed on Monday that the Securities and Exchange Commission has issued a notice of good to the company, indicating potential legal enforcement actions regarding the company’s cryptocurrency business.
Dan Gallagher, Robinhood’s chief legal, compliance and corporate affairs officer, said in a blog post that the company was “disappointed” by the SEC’s decision and continues to believe that crypto assets on its platform are not legally securities.
Robinhood said its number of funded customers rose by 810,000 year over year to 23.9 million. Assets under custody rose 65% year over year to $129.6 billion, according to the press release.
Robinhood shares are up nearly 40% year to date ahead of Wednesday’s earnings announcement.
Read the full earnings release here.
Correction: An earlier version of the story misstated the date of Robinhood’s quarterly report.
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