The firm also reported record net revenues of $618 million, up 40% year over year.

The total revenues included $329 million derived from transaction revenues, which included revenue generated from its crypto business — making up $126 million of the total, a 232% increase year over year.

$157 million in net income

Robinhood reported a first-quarter net income of $157 million versus a net loss of $511 million during the same period a year ago. Its diluted earnings per share (EPS) stood at $0.18 for the quarter.

The company reported $26.2 billion in assets related to user cryptocurrencies safeguarding obligation and the same amount under the liabilities and stockholder equity category.

The latest results surpass external expectations. CNBC said analysts surveyed by the London Stock Exchange Group expected Robinhood to report $549 million in first-quarter revenue and diluted EPS of $0.06.

The price of Robinhood stock (HOOD) was down 0.78% on May 8 but up 3.64% after hours.

Wells notice

Robinhood executives commented on the recent Wells Notice issued against the firm’s crypto unit by the US SEC during the earnings call. The notice indicates that staff at the SEC intend to recommend enforcement action against Robinhood Crypto.

In response to investor questions, executives affirmed that Robinhood takes a “conservative approach” to listings and products with regulatory considerations. They also stated that they “firmly believe” consumers should have access to crypto as an asset class.

Robinhood has previously stated that it made efforts to comply with regulations and register with the SEC. The firm also stated that it does believe the assets it lists are securities and assured users that the notice will not affect services.

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