Robinhood saw transaction revenue fall in the fourth quarter from the previous period, including a 24% decline in cryptocurrencies, while a slew of other numbers also took a turn lower. The firm also said it was looking to buy back Sam Bankman-Fried's shares in the company. Crypto transaction revenue dropped to $39 million in the fourth quarter, missing the $51 million estimate of analysts compiled by FactSet. The company posted a net loss of $166 million, which was wider than the estimate for a $131 million loss.
Robinhood said that it will attempt to buy back most or all of the 55 million shares purchased in May 2022 by Sam Bankman-Fried's Emergent Fidelity Technologies. The agreement is subject to final approval from the firm's Board of Directors, who have tentatively authorized the move.
Robinhood's co-founders also said they will cancel nearly $500 million of their share-based compensation in an effort to reduce the firm's operating expenses. Shares whipsawed in after hours trading, jumping as much as 7% before giving back gains.
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