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Investing.com -- Robinhood reported Wednesday third-quarter results that topped Wall Street estimates, driven by a boom in revenue from cryptocurrency trading, while the trading platform touted strong activity in prediction markets just as Chief Financial Officer Jason Warnick is set to retire.
Warnick is set to transition from his role as CFO in the first quarter, but will remain as strategic advisor through September 1, 2026 and be succeeded by Robinhood finance veteran Shiv Verma.
Robinhood (NASDAQ:HOOD) shares dipped by more than 1% in extended hours trading following the report.
The company reported third-quarter earnings of $0.61 per share on revenue of $1.27 billion. Analysts were expecting $0.51 a share and $1.19 billion, respectively.
"Q3 was another strong quarter of profitable growth, and we continued to diversify our business, adding two more business lines—Prediction Markets and Bitstamp—that are generating approximately $100 million or more in annualized revenues,” the company said.
Revenue surged 100% from a year earlier, fueled by a 129% jump in transaction revenue. Crypto and options transaction revenue led the gains.
"We see next phase of growth coming into focus across prediction markets, tokenization, banking and wealth management that reinforce Robinhood’s evolution into a broader financial services platform underpinned by new and emerging business lines," analysts at Morgan Stanley said in a note to clients.
(Scott Kanowsky contributed reporting.)