Robinhood also reported fewer monthly active users, which dropped 16 per cent to 10.3 million in Q3 from the same period in 2022

Shares of Robinhood dropped Wednesday after the retail brokerage reported a decline in trading volumes in the last quarter and said it is looking to expand growth in Europe.

Robinhood also reported fewer monthly active users (MAU), which dropped 16 per cent to 10.3 million in Q3 from the same period in 2022.

Although Q3 revenue increased 29 per cent to $467 million, it fell short of the $480 million analysts were forecasting. Its net loss reached $85 million, or 9 cents a share, and topped Wall Street’s expectations.

Revenue was hurt by a 13 per cent drop in Q3 transaction revenue tied to stock trading, compared with the same period in 2022. Crypto trading declined 55 per cent YoY. Options trading was unchanged. That translated to an overall drop of 11 per cent in its transaction-based revenue.

The stock was last down over 14 per cent. Shares have risen around 20 per cent year to date.

Over the past year, we have put a lot more value in products such as Robinhood Gold, including a 4.9 per cent annual yield on cash and a 3 per cent match on IRA contributions, Robinhood Chief Executive Officer Vlad Tenev said in the earnings release. Looking ahead, we remain focused on providing industry-leading products that serve far more of customers’ financial requirements, gaining market share, expanding globally and continuing to change the industry for the better.

The firm is also seeking growth opportunities in Europe. It said in its earnings release that it will soon launch its brokerage in the U.K. and will open crypto trading to its European Union customers.