Robinhood’s losses narrow in third quarter, monthly users drop

Robinhood reported a third-quarter net loss of $175 million, beating the analyst consensus estimate of a $311 million loss, according to FactSet data. Shares rose more than 4% in after-hours trading.

The retail investing platform’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) was back in the black this quarter, totaling $47 million. This beat analysts’ estimate of negative $48 million, according to FactSet data.  It was also an improvement from negative $80 million in the second quarter. 

Meanwhile, the platform’s monthly active users decreased by 1.8 million to 12.2 million in September from the prior month, while net revenue rose 14% from the second quarter to $361 million.

Crypto transaction revenue declined 12% to $51 million compared with the previous quarter, missing an estimate of $58 million and down from $58 million in the second quarter.

Overall, Robinhood’s transaction revenue was up 3% from the second quarter to $208 million, compared with $202 million in the second quarter. 

Earlier this year the New York Department of Financial Services hit Robinhood’s crypto division with a $30 million fine, and the firm has twice announced layoffs this year.

The retail investing platform launched its own crypto wallet at the end of the quarter, as exchanges jostle for dwindling volumes. 

Robinhood Wallet, a standalone app on the Apple Store, lets users trade and swap crypto without network fees. The app initially launched with Polygon support but will support multiple networks in the future, according to Robinhood.

Source : theblock

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