A 3,000% YoY Earnings Increase?! Robinhood Is Printing Money at Record Clips Thanks to Crypto…

Welp, Robinhood just dunked on its haters. Again. Vlad Tenev’s favorite chaos machine reported Q4 revenue of $1.01 billion, more than double last year’s haul, while crypto-related revenue skyrocketed 700% to $358 million. Meaning, Robinhood is officially back on its B.S., printing money off degenerate crypto traders like it’s 2021 all over again. The stock ripped 16% after hours, presumably because nothing gets Wall Street going more than the thought of retail traders making terrible financial decisions en masse. 

For starters, Robinhood’s revenue surge was fueled almost entirely by crypto degeneracy, thanks to Bitcoin’s insane rally past $100K post-election and the general mania surrounding digital assets. Turns out, when Donny Politics starts calling himself a ‘pro-Bitcoin president’ all while launching his own coin, people go full send on meme coins and leveraged bets. Who knew?

With that said, while the dust has settled and Robinhood is gloating in the limelight, it’s no secret that they really needed this win. The company has spent the last few years trying to convince people it’s more than just a casino for retail traders, launching retirement accounts, options trading in the UK, and even a ‘Gold’ membership program. But at the end of the day, the firm still makes most of its money off transaction-based revenue—and nothing generates transactions quite like crypto-fueled euphoria.

(Source: Bloomberg) 

What’s more is that (apparently), this isn’t the same Robinhood that got roasted by Congress for halting GameStop trades in 2021. The company just posted its fifth straight quarter of profitability, with net income coming in at $916 million, or $1.01 per share—an absolutely insane 3,000% YOY increase.

Meanwhile, net deposits surged 49% YOY to $50.5 billion, meaning people are still throwing money into the platform despite years of lawsuits, regulatory headaches, and existential crises. Vlad’s even talking about expanding into Asia via Singapore in 2025, because, you know, Asian gamblers are a whole other level of degeneracy. 

Of course, Robinhood also tried to get even wilder than it already is this past quarter, testing out sports betting-adjacent event contracts for the Super Bowl, only to get shut down almost immediately by the Commodity Futures Trading Commission (CFTC). Which, to be honest, I can’t blame them. When you see a cesspool of sports bettors combined with another cesspool of Swiftie peeps acting like their whole life depends on Kelce winning the Super Bowl—the product market fit is definitely there. 

However, while Robinhood ultimately got knee-capped on the move, they definitely aren’t done pushing limits. CEO Vlad Tenev is already talking up crypto tokenization and DeFi integrations, claiming the company is “uniquely positioned at the intersection of traditional finance and digital assets.” Translation: they’re about to find even more ways to extract money from retail traders before the regulators catch up.

(Source: PYMTS) 

Meaning, as of right now, the market is rewarding Robinhood for doing what it does best—turning retail FOMO into cold, hard cash. The company is growing, profitable, and expanding globally, all while riding the crypto wave for everything it’s worth.

In the end, regulators might try to slow them down, but let’s be honest–Robinhood thrives in chaos. It’s what got them to where they are at. And as long as the market keeps serving up meme stock rallies, and crypto booms, Vlad and Co. will be right there, skimming their cut off every trade.

(Source: Giphy) 

For now, keep your eyes on Robinhood as shares are currently up 13% on the day—and of course, do your due diligence to see if it’s right for you. As for me though, I just like the stock (wink, wink). In the meantime, stay safe and stay frosty, friends! Until next time…

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Stocks.News holds positions in Robinhood as mentioned in the article.