Robinhood’s Crypto Business Is the Tail That Wags the Doge

The headline numbers for Robinhood Markets ’s third quarter and its near-term outlook won’t help the stock. Still, it isn’t all bad news.

Robinhood had a net decline in cumulative funded accounts from the second quarter to the third, from 22.5 million to 22.4 million. That is a big change from recent trends of explosive growth, when millions of accounts were on net added per quarter. New funded accounts were still about 670,000 in the third quarter, but about 870,000 accounts were “churned”—or left without funds for a while. A churned account isn’t necessarily a permanently lost one. About 110,000 accounts were “resurrected” from that status in the third quarter. But for now, evidently some users don’t mind being dormant.