Robinhood’s first profitable quarter since its IPO comes as cryptocurrency earnings continue to decline

Robinhood struggled to regain relevance after peaking at more than 21 million users during the meme stock boom of 2021. Gabby Jones—Bloomberg/Getty Images

Robinhood’s cryptocurrency transaction revenue fell to $31 million in the second quarter — down 18% from the first quarter and down about 47% year over year — marking a new low for the online brokerage firm , which went public in 2021.

Overall, however, Robinhood topped analysts’ forecasts of a loss of 1 cent with earnings per share of 3 cents, according to data from the Wall Street Journal.

Robinhood posted net income of $25 million for the second quarter, its first positive result since going public. Total revenue rose 10% sequentially to $486 million, up 53% year over year and beating analysts’ expectations of $473 million.

In after-hours trading, shares fell more than 7% to a low of $11.47. Recently, shares of Robinhood have risen in line with other publicly traded crypto and crypto-related companies after a federal judge ruled against Ripple in the Securities and Exchange Commission case.

“While the online broker’s shares fell in after-hours trading, I think it has a lot to do with negative market sentiment due to the historic US debt downgrade,” Jesse Cohen, senior analyst at Investing.com, told Fortune in an email.

Robinhood’s improved profits come as a result of a series of quarters of losses and layoffs as the online broker, founded in 2013 by Stanford University grads Vlad Tenev and Baiju Bhatt, has sought other revenue streams that exceed go beyond the small fees he collects for trading.

View Robinhood’s crypto transaction revenue (in millions) chart

One of the company’s bigger bets was on crypto. In 2018, Robinhood began allowing users to buy and sell digital assets, initially only offering them the ability to trade Bitcoin and Ether, Ethereum’s native cryptocurrency.

The company eventually expanded the number of listed tokens to 18 and announced additional crypto products, including a wallet unveiled in April 2022, as well as a recently announced API that allows users in applications outside of the Robinhood exchange to buy and sell digital assets.

Following the SEC’s lawsuits against Binance and Coinbase, in which the agency argued that another 13 tokens were unregistered securities, Robinhood decided to delist cryptocurrencies for the Solana, Polygon, and Cardano blockchains.

Robinhood also said it still wants to officially buy back the 7% stake, or 55 million shares, that Sam Bankman-Fried, the disgraced founder of bankrupt crypto exchange FTX, bought in 2022. At current prices, the shares would be worth more than $680 million.