Robinhood reported a $175 million net loss for the third quarter of 2022, while revenue from cryptocurrency transactions fell 12% from the previous quarter to $51 million. The decline applied to crypto transaction revenue—not to the company’s total revenue.
The company’s November 2 earnings release showed that total net revenue rose 14% sequentially to $361 million. Transaction-based revenue increased 3% to $208 million, helped by options and equities, while net interest revenue climbed 73% to $128 million.
Robinhood’s net loss narrowed from $295 million in the second quarter to $175 million in the third. Operating expenses fell 12% to $535 million, a figure that included $90 million in restructuring charges. Those results do not support describing the company as having recorded a 12% overall “loss”: 12% was the quarter-on-quarter decline in crypto transaction revenue.
Monthly active users decreased by 1.8 million from the previous quarter to 12.2 million in September 2022. Robinhood attributed the decline to customers navigating a volatile market. Assets under custody, however, increased 1% to $64.6 billion, helped by net deposits and partly offset by lower asset valuations.
The company also discussed the beta rollout of its standalone self-custody wallet, which it planned to expand to more users. That product roadmap was separate from the quarterly accounting figures and was not evidence that the wallet would reverse the decline in trading activity or crypto revenue.
The figures are a historical snapshot for the quarter ended September 30, 2022. They do not describe Robinhood’s current financial position and should not be treated as a forecast or investment recommendation.
