Robinhood Markets, Inc. (NASDAQ: HOOD) announced its financials for the fourth quarter of 2022, with a 5 percent increase in total net revenue to $380 million, despite an 11 percent decrease in transaction-based revenues to $186 million.

Robinhood’s Crypto Revenue Dips

The platform’s revenue from cryptocurrency trading took a massive hit as it declined to $39 million, which is a 24 percent fall from the third quarter due to lower crypto trading volumes. It was the second consecutive quarter exhibiting a decline in crypto revenue, as the figure also dropped 12 percent in Q3.

Additionally, revenue from equities trading declined by 32 percent to $21 million. However, options revenue remains unchanged at $124 million.

The total net revenue was pushed higher, with a 30 percent increase in net interest revenue to $167 million. It was driven by higher short-term interest rates and growth in interest-earning assets.

The company ended the quarter with a net loss of $166 million, narrowing from the previous quarter’s loss of $175 million. The earnings per share came in at a negative $0.19. Moreover, the EBITDA strengthened by 74 percent to $82 million.

The monthly active users on the trading platform decreased by 0.8 million to 11.4 million. The assets under custody of the platform also declined by 4 percent to $62 billion due to lower market valuations for growth stocks and crypto assets.

The company reported a total net revenue of $1.36 billion for the entire year, with a net loss of $1.03 billion. Its adjusted EBITDA stood at negative $94 million.

“We stayed focused in the fourth quarter on serving customers, growing our business, and driving long-term shareholder value,” said Robonhood’s CFO, Jason Warnick. “We continued to deliver on our product roadmap and kept our costs lean.”

Buyback of Shares from Sam Bankman-Fried

Meanwhile, the board of Robinhood approved the repurchase of 55 million Robinhood shares that Emergent Fidelity Technologies, an entity controlled by Sam Bankman-Fried, bought in May 2022.

Bankman-Fried became a 7.6 percent stakeholder in Robinhood after purchasing shares worth $648 million but currently has a market value of $578 million. Later, it was revealed that he took out a direct loan from Alameda Research, a firm he owned, to purchase the Robinhood shares. The United States Justice Department seized all 55 million shares on 9 January as a part of its investigations against Bankman-Fried.

“The proposed share purchase underscores the confidence the Board of Directors and management team have in our business,” Warnick added.