Robinhood Markets, Inc. has released its financial results for the third quarter of the year.
The American broker’s total net revenue for the three months between July and September 2022 came in at $361 million, almost the same as the same period last year. On quarterly basis, the US commission-free stock trading and investing app registered 14% uptick.
Transactions-based revenue on the platform fell 22% on yearly basis in Q3 to $208 million. However, compared to the second quarter of the year, the numbers improved by 3%.
Robinhood ended the quarter with $175 million net loss or $0.20 per diluted share. However, the net loss for the period was lower than second quarter of 2022 when the numbers were $295 million and significantly better than Q3 2021 when it reached $1.31 billion.
Options trading brought in $124 million revenue, gaining 10% to previous quarter. Cryptocurrency trading decreased 12% QoQ to $51 million and equities trading increased 7% QoQ to $31 million.
Vlad Tenev, CEO and Co-Founder of Robinhood Markets, said:
In the third quarter we achieved our goal of reaching adjusted EBITDA profitability, a quarter earlier than planned. We delivered on top feature requests for customers including advanced charts, options in cash accounts, instant withdrawals and our self-custody, web3 wallet. In the next week, we are raising the yield on uninvested cash for Gold members – making it one of the best rates in the industry.
Client numbers
Robinhood saw significant drops in client metrics, as well. Monthly active users on the platform decreased to 12.2 million from 14 million in the previous quarter. The numbers were also down 8% form the end of December 2021. The broker attributed the decline to users with lower balances, who are engaging less in the current market environment.
