Robinhood (HOOD.O) exceeded expectations for fourth-quarter profit, driven by a sharp rise in equity, options, and cryptocurrency trading after Donald Trump returned to the White House. Following the announcement, Robinhood’s shares jumped more than 14% in after-hours trading.
The company’s transaction-based revenue soared 236% to $672 million compared to the same quarter a year ago, fueled by increased fees from options, equities, and crypto trades.
Crypto trading activity was a major growth driver, with revenue from that segment rising 700% during the quarter as bitcoin approached the $100,000 mark. Investors were optimistic about pro-crypto policies expected under the new Trump administration.
“It was no secret that Robinhood’s Q4 earnings were going to be great, driven primarily by a huge uptick in crypto-related revenues,” said John Wu, President of Ava Labs.
The surge in equity and crypto markets came after Trump’s election victory, as investors anticipated deregulation and pro-business policies that would favor U.S. corporations and the growing digital asset sector.
Robinhood reported an adjusted profit of $1.01 per share, well above analysts’ expectations of 44 cents, according to data from LSEG.
The company’s assets under custody increased by 88% to $193 billion during the quarter, and quarterly net interest revenue, driven largely by margin investing, rose 25% to $296 million.
“This was a big quarter for us, so we did over $1 billion in revenue for the first time in the history of the company, and that capped off what was a record-breaking year with over $3 billion in revenue for the whole year,” Robinhood co-founder and CEO Vlad Tenev said on the company’s post-earnings call.
