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Robinhood shares slump after CFO shakeup, earnings
Yahoo Financeยท 2025-11-06 16:00
Core Insights - Robinhood reported a strong Q3 performance with a 100% year-over-year revenue increase to $1.27 billion and a net income rise of 271% YoY to $556 million, despite a stock price drop of about 10.8% [3][8] - The company's cryptocurrency-trading revenue, although up 300% to $268 million, fell short of analysts' expectations, contributing to the stock decline [3][4] - CFO Jason Warnick is stepping down after nearly seven years, transitioning to a strategic advisor role, with Shiv Verma set to take over as CFO [8][5] Financial Performance - Q3 revenue reached $1.27 billion, marking a 100% increase year-over-year [8] - Net income for the quarter was $556 million, reflecting a 271% increase compared to the previous year [8] - Cryptocurrency revenue increased by 300% to $268 million, but did not meet analysts' estimates [3][4] Leadership Changes - CFO Jason Warnick announced his retirement plans on October 30, transitioning to an advisory role until September 1 of the following year [8] - Shiv Verma, currently SVP of finance and strategy, will succeed Warnick as CFO [8][7] - Warnick's total compensation in the previous year was $8.82 million, down from $10.2 million the year before [5]