Robinhood Markets Inc. (HOOD) posted $487 million in quarterly revenue, topping analyst expectations of $460 million, as the brokerage diversified beyond crypto into higher-margin derivatives.
Transaction-based revenue from options jumped 28 percent quarter-over-quarter to $145 million. Event contracts, which let users wager on specific future outcomes, contributed $32 million and showed strong adoption among retail traders.
Crypto transaction revenue fell 18 percent to $78 million due to lower trading volumes across major digital assets. The Crypto Fear & Greed Index sits at 48, reflecting neutral sentiment. The January 2024 approval of spot Bitcoin ETFs shifted some institutional and retail interest to regulated products, reducing volumes on platforms like Robinhood.
Robinhood's earnings confirm its pivot into derivatives is working. Options and event contracts offer higher margins than crypto trading and reduce dependence on volatile digital asset markets. The company's product expansion and user engagement support a "Buy" rating with a twelve-month price target of $22.
