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Robinhood Markets, the Menlo Park, California-based firm that rose to prominence during the 2021 GameStop short squeeze, surpassed $1 billion in revenue during its fourth quarter. The surge was largely driven by the success of its crypto trading operation during the 2024 presidential election, which saw one in seven voters emerge as "crypto voters."
The firm's most recent revenue figure largely eclipsed projected revenues for the quarter, exceeding the $940.8 million estimates from market analysts by $69.2 million, according to Bloomberg.
"We see a huge opportunity ahead of us as we work toward enabling anyone, anywhere, to buy, sell or hold any financial asset and conduct any financial transaction through Robinhood,” said Robinhood CEO Vlad Tenev.
Robinhood's push into crypto started in 2018, when it began offering access to crypto trading to customers in several key U.S. states. The company's growth in digital assets trading accelerated during the COVID-19 pandemic, as retail investors increasingly turned to crypto trading on the app. During the most recent quarter, the company's revenue from crypto grew to $358 million, representing a jump of over 700%.
Last year, Robinhood bought Bitstamp for $200 million to compete with Coinbase and Binance, two of the largest crypto exchanges in the world.
However, the road has been rocky. Last month, the popular retail trading firm was fined $45 million by the U.S. Securities and Exchange Commission (SEC) for various violations over a four-year period from 2019 to 2023. These included an alleged failure to safeguard customer data, the usage of "off-channel" communication channels, and a failure to preserve key data in a legally compliant manner.
Robinhood's stock is currently trading at $62.83 per share at the time of writing.