Robinhood Posts Rough Q3

Robinhood revealed a steep $1.3B loss on Tuesday. Thought it was highly attributable to share-based compensation, several areas of their growth went into reverse. Transaction-based revenues, for example, were only $267M in Q3, a sharp drop from the $451M in Q2.

That’s not all. Assets Under Custody, Average Revenue Per User, and Monthly Active Users all shrank as well.

“This quarter was about developing more products and services for our customers, including crypto wallets,” said Vlad Tenev, CEO and Co-Founder of Robinhood Markets, in the company’s official statement. “More than one million people have joined our crypto wallets waitlist to date. With 24/7 live phone support, we believe that Robinhood is becoming the most trusted and intuitive platform for retail and crypto investors. And looking ahead, we’re committed to delivering tax-advantaged retirement accounts to help everyone invest for the long term.”