Online trading platform Robinhood (NASDAQ: HOOD) has surpassed market expectations with its fourth-quarter earnings and revenue, a development that could signal positive momentum for cryptocurrency exchange Coinbase (NASDAQ: COIN).
Robinhood announced that its revenue for the fourth quarter surged by 115% year-on-year to reach $1.01 billion, comfortably exceeding Wall Street projections of $945.8 million, according to data from FactSet. The firm attributed this significant growth to a 200% increase in transaction-based revenue, driven largely by an astonishing 700% rise in cryptocurrency trading activity.
The latest figures from Robinhood may offer a promising outlook for Coinbase, which is set to release its own earnings report on Thursday after market close. Both companies cater to a similar customer base and generate the bulk of their income from transaction fees. Analysts anticipate that Coinbase will report one of its strongest quarters in terms of trading volume since the final quarter of 2024, spurred by the market surge following the election of pro-crypto President Donald Trump. November’s rally sent cryptocurrency prices to record highs, further boosting trading activity across the sector.
According to FactSet estimates, Coinbase is expected to report quarterly revenue of $1.8 billion, a notable increase from $1.26 billion in the previous quarter. Trading volume is also projected to climb to $195.9 billion, up from $185.3 billion.
Robinhood also outperformed on earnings per share (EPS), reporting $1.01 per share, significantly surpassing the market consensus of $0.42. Following the release of the results, shares in Robinhood climbed more than 5% in after-hours trading on Wednesday, while Coinbase shares edged up approximately 0.3%.