Robinhood's transaction-based revenue, or income generated from fees for facilitating trading in options, cryptocurrency and equities, jumped 236% in the quarter to $672 million from a year earlier.
Nearly half of those gains came from a 700% rise in revenue related to crypto trading as bitcoin continued its rapid march towards the $100,000 mark in the quarter on hopes of favorable policies under the new Trump administration.
"It was no secret that Robinhood's Q4 earnings were going to be great, driven primarily by a huge uptick in crypto-related revenues," Ava Labs President John Wu said.
"The company has great long-term potential if you look at it from a demographic perspective – its 11 million-strong user base is young, retail oriented, and fanatic about new types of assets and new ways of trading and investing," he added.
After Donald Trump's presidential election victory, both equity and cryptocurrency markets surged as investors bet on deregulation and pro-business policies to benefit American corporates and the burgeoning digital asset industry.
Robinhood reported a profit of $916 million, or $1.01 per share, in the quarter. That compares with $30 million, or 3 cents per share, a year earlier.
The company booked a deferred tax benefit of $369 million, or 41 cents per share, primarily from the release of its valuation allowance on most of its net deferred tax assets, the company said.
"We hit the gas on product development in 2024 with a new platform for active traders, Gold Card launch, an expanded UK and EU product suite, and much more," Robinhood co-founder and CEO Vlad Tenev said.
