Robinhood on Tuesday revealed a significant drop in the money it earned from cryptocurrency trading. The company reported $51 million in crypto transaction-based revenue, a 78% decline from the $233 million it made during the second quarter. The shift indicates that Robinhood might be less of a crypto-fueled company than previously thought.
The company posted $365 million in net revenue for the third quarter, a 35% increase from the same period last year, but down 55% from the second quarter. It also reported a net loss of $1.32 billion. Robinhood stock fell 8% after hours.
During the earnings call, Robinhood CEO Vlad Tenev attributed the drop in crypto trading to the market’s volatility, saying that the company had seen huge interest in crypto during the second quarter, especially in dogecoin, a digital currency that was created as a joke. This development could bolster investors’ concerns that Robinhood’s success is too tied to interest in trends like dogecoin.