Robinhood Earnings Beat Estimates, Pointing to Strong Quarter for Coinbase

Popular trading platform Robinhood (HOOD) beat its fourth-quarter earnings and revenue estimates, which could have positive read-through for peer Coinbase (COIN).

Robinhood (HOOD) Q4 earnings beat on strong crypto revenue; bodes well for Coinbase (COIN)

Robinhood (NASDAQ:HOOD) on Wednesday reported fourth-quarter earnings and revenue that beat analysts’ estimates, which bodes well for its crypto peer Coinbase (NASDAQ:COIN) that is set to announce its quarterly numbers on Thursday.

HOOD4 Q4 earnings beat estimates

Robinhood’s total revenue in the recent quarter soared by 115% year over over to $1.01 billion, as per the press release. This figure translates to an adjusted loss of $1.01 per share. In comparison, analysts had forecast the company to post $945.8 million of revenue, leading to an earnings loss of $0.42 a share.

Breaking down its revenue further, the popular trading platform said its transaction-based revenue clocked in at $918 million – a 200% annualised growth. This was primarily driven by a 700% increase in cryptocurrency revenue, now valued at $233 million.

Other notable figures in the earnings report include a 70% year-over-year increase in net cumulative funded accounts to 22.5 million and a record average revenue per active user of $144.

Robinhood shares were reported to be up by more than 5% in after-hours trading on Wednesday. At the time of writing, the stock is exchanging hands at $12.36.

Coinbase Q4 earnings preview

Wall Street now anticipates Coinbase to post one of its best quarters in terms of trading volume since Q4 of 2024. This is attributed to the election of crypto-friendly President Donald Trump that sent crypto prices to new all-time highs in November.

According to FactSet, analysts are expecting COIN to announce $1.8 billion of revenue, up from $1.26 billion in the third quarter, and exchange volume of $195.9 billion, compared to $185.3 billion in Q3.

Coinbase’s earnings are scheduled to be released after the market close on Thursday. Both Robinhood and Coinbase platforms share a similar client base and derive the bulk of their revenue from trading fees.