Shares of Robinhood Markets (HOOD) are down 8% after the online brokerage reported weaker-than-expected third-quarter financial results as trading activity on its platform slows.
The unprofitable company reported a loss in Q3 of $0.09 U.S. per share, compared with a loss of $0.20 U.S. a year earlier.
Revenue in the quarter ended Sept. 30 rose 29% to $467 million U.S., but missed Wall Street forecasts of $478.4 million U.S., according to LSEG data.
The number of monthly active users on Robinhood’s online trading platform declined 16% from a year earlier during the quarter to 10.3 million.
Trading activity on Robinhood’s platform has steadily declined since the meme stock rally that occurred in 2021, sending the company’s share price lower as a result.
Separately, the company used its Q3 print to announce plans to launch a brokerage operation in the United Kingdom and extend cryptocurrency trading to customers in Europe.
Robinhood’s stock has declined 72% since its market debut in July 2021. The company’s shares now trade at $9.76 U.S. each.