By Katherine Hamilton

Robinhood Markets profit shot up as it surpassed Wall Street's expectations on rising deposits and cryptocurrency valuations.

The online brokerage platform posted a profit of $916 million, or $1.01 a share, in the three months ended Dec. 31, compared with $30 million, or 3 cents a share, a year earlier.

Total net revenue more than doubled to $1.01 billion. Analysts surveyed by FactSet forecast revenue of $946 million. Average revenue per use doubled to $164.

Shares have more than quadrupled over the past year. The Menlo Park, Calif. company is working to become a one-stop shop for the financial needs of young people, who are expected to inherit significant wealth from older generations. In November, Robinhood agreed to acquire TradePMR, a company that provides services to independent registered investment advisers. It also shared plans to launch an AI-powered financial advice service.

"We see a huge opportunity ahead of us as we work toward enabling anyone, anywhere, to buy, sell, or hold any financial asset and conduct any financial transaction through Robinhood," Chief Executive Vlad Tenev said.

Assets under custody increased 88% to $193 billion due to more net deposits and higher crypto valuations. Robinhood expanded access to crypto across the U.S. and Europe and volumes increased more than four-fold, the company said.

Robinhood allows cryptocurrency trading on its platform, and crypto's strength over the past year has helped push up the broker's stock. Under new leadership, the Securities and Exchange Commission in January launched a task force to make the regulatory industry easier on crypto.

Write to Katherine at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

February 12, 2025 16:22 ET (21:22 GMT)

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