Robinhood misses quarterly profit estimates as softer crypto activity outweighs robust trading

What happened: Robinhood Markets missed Wall Street estimates for third-quarter profit as slower cryptocurrency trading and higher expenses offset strong options and prediction markets activity. Key numbers: Profit of 51 cents per share versus analysts' expectations of 55 cents. Shares fell 4.2 per cent in after-hours trading. Crypto transaction revenue fell 55 per cent to $120 million. Why it matters: The CFO said prediction markets are almost a $500-million-a-year business already and an important growth driver, even as crypto weakness weighed on results.

Robinhood Markets missed Wall Street estimates for third-quarter profit as slower cryptocurrency trading and higher expenses offset strong options and prediction markets activity.

The CFO said prediction markets are almost a $500-million-a-year business already and an important growth driver, even as crypto weakness weighed on results.