Link copied 
Despite facing a slump in revenue, Robinhood Markets, the renowned trading platform, pulled off a remarkable turnaround by recording its first profit since going public. The financial figures for the second quarter of 2023, announced on August 2, showed both positive strides and some areas of concern.
The company's total revenue slid by 5% over the last year, from $202 million to $193 million. Breaking down the revenue, the cryptocurrency segment saw a notable drop of 19%, generating $31 million. Meanwhile, other transaction-based revenues faced declines as well, including options, down by 6% to $127 million, and equities, dropping by 8% to $25 million.
Despite these obstacles, Robinhood didn't merely manage to stay afloat; it turned a considerable profit. In contrast to a net loss of $511 million in the first quarter of 2023, the second quarter boasted a net income of $25 million. With earnings per share at $0.031, the company attributed this victory to a substantial decrease in total operating expenses of around $45 million. EBITDA, a key metric for assessing operational performance, increased by 32% to $151 million.
Further adding to the positive news, the firm's assets under custody rose by 13% to $89 billion in the last quarter. This was primarily due to higher equity valuations and continued net deposits. Speaking of crypto assets, Robinhood's custody increased marginally from $8.4 billion in December 2022 to $11.5 billion last month.
Robinhood's net deposit for the quarter was $4.1 billion, signaling an annualized growth rate of 21% in relation to assets under custody in Q1. Over the past year, net deposits reached $16.1 billion, reflecting an annual growth rate of 25%.
Robinhood's achievement of profitability amid a revenue decline represents a pivotal moment for the trading platform, setting an optimistic tone for its financial trajectory.
