According to CNBC, Robinhood absolutely crushed third-quarter earnings expectations on Wednesday, with revenue doubling year-over-year while net income skyrocketed to $556 million. That’s 61 cents per share, up dramatically from just $150 million during the same period last year. Transaction-based revenue came in at $730 million, slightly below estimates but still massive. CFO Jason Warnick highlighted that the company added two new business lines—Prediction Markets and Bitstamp—that are already generating around $100 million in annualized revenue. The strong performance extends Robinhood’s incredible 2024 run, making it one of the year’s top large-cap tech performers.
Sponsored content — provided for informational and promotional purposes.
Beyond the meme stock era
Here’s the thing about Robinhood’s latest results—they’re not just about retail traders YOLOing into meme stocks anymore. The company is aggressively transforming itself into a full-scale wealth management platform. They’re going head-to-head with established players like Fidelity and Schwab by offering deposit matches to lure their clients away. And that TradePMR acquisition? It’s seriously boosting their assets under management. Basically, Robinhood is closing the gap with Coinbase while simultaneously building a much more diversified business model.
revenue-reality-check”>The revenue reality check
Now, let’s talk about that transaction revenue number. $730 million is huge, but it actually missed StreetAccount’s $739 million estimate. So what gives? Well, trading activity might be cooling slightly from the crypto and meme stock frenzy peaks. But Robinhood’s playing the long game here. They’re not just relying on transaction fees anymore—they’re building multiple revenue streams that can weather market volatility. The fact that they’ve already got $100 million annually from new business lines shows this strategy is working. Could this be the beginning of Robinhood 2.0?
The wealth management wars heat up
Robinhood’s push into wealth management is fascinating because they’re essentially trying to become what they once disrupted. They started as the anti-establishment trading app for millennials, and now they’re competing directly with the very institutions they mocked. And you know what? It might actually work. Their user experience is lightyears ahead of traditional brokerages, and they’ve got brand recognition that money can’t buy. The question is whether they can convince serious investors to trust them with serious money. If they can pull that off, we’re looking at a completely different company in five years.
