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Trading platform Robinhood reported a surge in fourth-quarter profit on Wednesday, fueled by frenetic activity in equity and crypto markets following Donald Trump’s presidential election victory.
Shares of the company surged more than 11% in extended trading.
Robinhood’s transaction-based revenue, or income generated from fees for facilitating trading in options, cryptocurrency and equities, jumped 236% in the quarter to $672 million from a year earlier.
Nearly half of those gains came from a 700% rise in revenue related to crypto trading as bitcoin continued its rapid march towards the $100,000 mark in the quarter on hopes of favorable policies under the new Trump administration.
“We hit the gas on product development in 2024 with a new platform for active traders, Gold Card launch, an expanded UK and EU product suite, and much more,” Robinhood co-founder and CEO Vlad Tenev said.
The Menlo Park, California-based company reported a profit of $916 million, or $1.01 per share, in the three months ended Dec. 31. That compares with $30 million, or 3 cents per share, a year earlier.
It booked a deferred tax benefit of $369 million, or 41 cents per share, primarily from the release of its valuation allowance on most of its net deferred tax assets, the company said.