CryptosHeadlines.com - The Leading Crypto Research Network:
Robinhood, the popular trading platform, posted a profitable second quarter of 2023 with EBITDA growing by 31% to $151 million. This marks the first time the company has turned a profit since going public.
Despite the overall positive results, Robinhood experienced an 18% decline in revenue from crypto transactions, which amounted to $31 million in the quarter.
The platform’s total revenue dropped from $202 million in June of the previous year to $193 million this year, representing a 4% decrease. Nonetheless, the company remains optimistic about its future prospects, including expansion plans in the UK.
Robinhood Turns Profitable in Q2 Despite Revenue Drop
In the second quarter of this year, Robinhood managed to turn a profit of $25 million, or $0.03 per share, despite experiencing a drop in revenue. The company’s total operational expenditures also improved, decreasing by approximately $45 million on average over the past several months.
EBITDA for the firm grew by 31% to $151 million, and the margin increased by 5 percentage points to 31%. Total assets in custody rose by 13% to $89 billion, driven by higher equity valuations and continued net deposits.
With a net deposit of $4.1 billion, Robinhood achieved an annualized growth rate of 21% in assets under custody compared to the first quarter of 2023. Over the past 12 months, net deposits reached $16.1 billion, marking a 25% year-over-year increase.
Robinhood’s plans for expansion in the UK have led to the recruitment of a top executive from British fintech company Freetrade. Despite this, there were reports of Ark Invest CEO Cathie Wood selling millions of dollars worth of shares in both Robinhood and Coinbase ahead of their upcoming second-quarter earnings releases.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.