Robinhood posts record $1.4 billion revenue, but a 14% profit drop exposes hidden portfolio losses
Robinhood reported $173 million in event-contract revenue for the third quarter, up from $120 million in the second quarter and more than six times the year-earlier level. Crypto revenue rose quarter over quarter to $120 million but fell 55% year over year, while crypto trading volume was $50 billion, down 38% annually. Customers traded a record 16.4 billion event contracts. Robinhood warned that state enforcement and legal disputes could restrict the contracts it offers. On the day of its results, the CFTC sued Utah and said it had begun proceedings involving nine other states over its authority over federally registered prediction markets. Robinhood also reported early activity on Robinhood Chain and announced UK crypto trading and Dubai regulatory authorization.
