Robinhood Forecasts Lower Revenue in Crypto
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19 July
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Robinhood warns its revenue could be lower than expected — especially in crypto — as the whole frenzy comes to an end. According to an amended prospectus, the Menlo Park-based company expects its revenue for the three months ending September 30, 2021 to be lower, as compared to the three months ended June 30, 2021. The company says "decreased levels of trading activity" is the the main trigger for the revenue decline.

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"We expect our revenue for the three months ending September 30, 2021 to be lower, as compared to the three months ended June 30, 2021, as a result of decreased levels of trading activity relative to the record highs in trading activity, particularly in cryptocurrencies, during the three months ended June 30, 2021, and expected seasonality," the company said.

Robinhood to Pay $70M for Outages in March 2020

Robinhood also projects to report operating expenses of between $486 million and $536 million as for the three months ended June 30, 2021. Moreover, the company forecasts a net income loss between $537 million and $487 million in Q2, 2021, compared with a $1.4 billion loss in Q1.

Earlier in July, iHodl reported that Robinhood's cryptocurrency arm — Robinhood Crypto — plans to pay New York regulators at least $10 million of fine for allegedly violating cybersecurity and anti-money laundering requirements. The cryptocurrency arm reportedly reached a settlement over a New York State Department of Financial Services (NYDFS) investigation. However, the final amount of the fine is yet subject to change.

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