Robinhood turns profitable for the first time since going public

• Despite recording a profit, Robinhood recorded a fall of 18% in its crypto trading revenue in Q2.
• In June, Robinhood discontinued support for all tokens identified as securities by the SEC.

American financial services firm Robinhood [HOOD] has recorded a net income of $25 million in the second quarter of 2023. This is the first time it has turned profitable since going public in 2021.

The company recorded crypto trading revenue of $31 million in Q2, a fall of 18% from $38 million in Q1.

The amount of $31 million in crypto trading revenue in Q2 represented 16% of the $193 million in trading income across all categories, registering a fall of 7% from the previous quarter.

Robinhood CEO Vladimir Tenev said, 

“In Q2, we reached a significant milestone by achieving GAAP profitability for the first time as a public company. Guided by our bold product road map, we’re continuing to innovate for our customers, grow assets, gain market share, and change the industry for the better.”

In addition, the company recorded $11.5 million in crypto assets into custody in Q2, the same amount as recorded at the end of the previous quarter.

The total assets under custody climbed 13% to $89 billion in Q3, owing to “higher equity valuations and continued net deposits.” Robinhood’s crypto assets under custody climbed marginally in the first half of 2023, from $8.431 billion in December 2022 to $11.503 billion in June 2023.

The net deposit was $4.1 billion in the quarter, representing a 21% annualized growth rate in assets under custody in the first quarter of 2023. Net deposits totaled $16.1 billion in the last 12 months, representing a 25% year-on-year increase.

Since the same quarter last year, Robinhood has lost 3.2 million monthly active users. It now has the fewest monthly active users in the last nine quarters.

On the other hand, total accounts in Q2 increased by 70,000 from the previous quarter this year, and numbers are up by 310,000 YoY.

Robinhood doesn’t support coins labeled as securities

In June, Robinhood discontinued service for all tokens identified as securities in Securities and Exchange Commission’s (SEC) lawsuits against Binance [BNB] and Coinbase [COIN].

The regulator labelled Cardano [ADA], Polygon [MATIC] and Solana [SOL] as securities. As of now, the trading platform only supports 15 different cryptocurrencies, including Bitcoin [BTC], Ethereum [ETH], Dogecoin [DOGE] and Avalanche [AVAX].