Robinhood’s fourth-quarter report may provide a glimpse into Coinbase’s financial performance.

Robinhood’s Strong Q4 Crypto Revenue Boosts Sentiment Ahead of Coinbase Earnings

Robinhood (HOOD) is expected to report a major jump in its crypto trading revenue for Q4 2024, with analysts forecasting a 440% increase, driven by strong user activity around the U.S. election in November. According to FactSet, Robinhood’s crypto revenue is projected to reach $345.5 million, up from $63.9 million in the previous quarter.

The surge in crypto trading comes as Robinhood’s overall revenue is estimated to climb to $934.9 million for Q4, up from $660.5 million in Q3. With earnings-per-share anticipated to grow to $0.41, compared to $0.18 in the prior quarter, the platform’s success reflects the broader enthusiasm in retail trading.

Robinhood’s shares have surged 350% over the last year, fueled by the resurgence of retail investors returning to the platform in anticipation of a more favorable economic environment. The app’s strong performance has carried over into 2025, with a 37% increase in share price in the first few weeks of the year.

The crypto activity data released by Robinhood has become a key metric for estimating trading volumes at other exchanges, particularly Coinbase (COIN). Barclays analyst Benjamin Buddish predicts that Coinbase’s retail trading volume will exceed $108 billion, drawing on Robinhood’s reported $69 billion in crypto trading volume through December 27.

Coinbase’s Q4 earnings report, scheduled for Thursday, is expected to reflect this upward trend. Analysts estimate Coinbase will report $1.8 billion in revenue, with earnings-per-share expected to hit $1.99, a significant increase from $0.41 in the previous quarter.

As Robinhood’s earnings are released, investors will be closely watching Coinbase, expecting similar strong results. Coinbase’s stock has climbed 90% over the past year, trading at $269.88, while Robinhood’s stock has seen a remarkable 370% rise, currently priced at $54.33.