Robinhood's Big Earnings Beat Could Bode Well for Coinbase

Robinhood’s Q4 Revenue Surges 115%, Driven by Crypto Boom

Robinhood (HOOD), the popular trading platform, reported a significant earnings beat in its fourth-quarter results, with revenue surging 115% year-over-year to $1.01 billion—surpassing analysts’ expectations of $945.8 million, according to FactSet. The impressive growth was fueled by a 200% increase in transaction-based revenue, largely driven by an astonishing 700% spike in cryptocurrency trading activity.

The earnings report signals strong momentum in the crypto sector, with potential positive implications for Coinbase (COIN), which is set to announce its quarterly earnings on Thursday. Both platforms share a similar user base and generate a significant portion of their revenue from trading fees. Analysts predict Coinbase will report one of its strongest quarters in terms of trading volume since Q4 2024, benefiting from the market rally following the election of crypto-friendly President Donald Trump.

FactSet estimates project Coinbase’s revenue at $1.8 billion, up from $1.26 billion in the previous quarter, with exchange volume rising to $195.9 billion from $185.3 billion.

Robinhood also exceeded earnings expectations, reporting earnings per share (EPS) of $1.01, well above the forecasted $0.42. Following the announcement, Robinhood’s stock surged over 5% in post-market trading, while Coinbase shares rose approximately 0.3%.

As the cryptocurrency market continues its upward trajectory, fueled by increased institutional adoption and regulatory clarity, trading platforms like Robinhood and Coinbase are poised for further growth.