As per its quarterly report released on August 2, Robinhood’s revenue from crypto currency transactions declined 18 per cent to $31 million

Robinhood released its Q2 results, achieving profitability for the first time since becoming a public company, in spite of a decline in revenue in Q2 2023.

As per its quarterly report released on August 2, Robinhood’s revenue from crypto currency transactions declined 18 per cent to $31 million. Other transaction-based revenues declined as well, including options, which dropped 5 per cent to $127 million, and equities, which dropped 7 per cent to $25 million. Over the past year, Robinhood’s revenue has declined 4 per cent from $202 million in June last year to $193 million.

Despite the decline in revenue, the firm logged a net income of $25 million, or earnings per share of $0.03, compared to a net loss of $511 million, or earnings per share of -$0.57, in Q1 of the year. The result is attributable to improvements in total operating costs over the last few months, with a midpoint drop of $45 million.

EBITDA rose 31 per cent consecutively to $151 million, with its margin gaining five points to 31 per cent. EBITDA is often used by analysts, investors and finance professionals to compare the operational performance of firms in the same industry.

The total assets under custody rose 13 per cent to $89 billion last quarter, led by “higher equity valuations and continued net deposits.” Considering Q1 2023, Robinhood marginally increased its crypto assets under custody from $8.431 billion in December 2022 to $11.503 billion this year.

In the second quarter, we reached an important milestone by achieving GAAP profitability for the first time as a public company, stated Vlad Tenev, Chief Executive Officer and co-founder of Robinhood Markets. Generally accepted accounting principles (GAAP) refers to the standard accounting principles and guidelines that firms use to prepare their financial statements.