Shares in Coinbase Global Inc. and Robinhood Markets Inc. both fell in after-hours trading today after they each fell short of expectations in their most recent quarter.

For its third quarter, which ended on Sept. 30, Coinbase reported adjusted earnings per share of 28 cents, up from a loss of one cent per share in the same quarter of last year, on revenue of $1.21 billion, up 79% year-over-year. Both fell short of the 45 cents per share and revenue of $1.26 billion expected by analysts.

Coinbase saw $75 million in net income in the quarter and subscription and services revenue of $556 million, the latter down 7% quarter-over-quarter. Stablecoin revenue came in at $247 million, up 3% quarter-over-quarter, in part driven by USDC balances on the platform growing 7%, to $6.6. billion.

Blockchain rewards revenue fell 16% quarter-over-quarter. Coinbase attributed the decline to lower average crypto asset prices, notably Ethereum and Solana. Coinbase also reported an 8% drop in custodial fee revenue, to $32 million, also tracking the drop in crypto asset prices.

Coinbase shares were down over 4% in late trading, whereas Robinhood shares were down over 10%.

For its fiscal third quarter, Robinhood reported adjusted earnings per share of 17 cents, up from a loss of nine cents per share in the same quarter of last year, on revenue of $637 million, up 36% year-over-year. Analysts had been expecting earnings of 18 cents per share and revenue of $653.35 million.

Robinhood saw transaction-based revenue increase 72% year-over-year, to $319 million. The growth was driven by option revenue, which jumped 63%, to $202 million. It also reported cryptocurrency revenue of $61 million, up 165%, and equities revenue of $37 million, up 37%. Interest revenue also rose, growing 9% year-over-year, to $274 million.

Underlying asset custody, which indicates how many assets users are holding on the platform, leaped 76% year-over-year, to a whopping $152.2 billion. Robinhood attributed the growth to continued net deposits and higher equity and cryptocurrency valuations. The latter stands in contrast to Coinbase, which blamed dropping cryptocurrency prices for some of its ills.

Robinhood users are also increasingly embracing non-cryptocurrency and equity options, with the number of subscribers to its gold investing service growing 65%, or 860,000 year-over-year, to 2.2 million.

Highlights in the quarter include Robinhood moving forward with advancements on its product roadmap and initiatives aimed at engaging active traders. Earlier this month, it began rolling out Robinhood Legend, a new desktop trading platform for active traders and the company plans to introduce futures and index options with competitive contract fees in the coming months.

“Q3 was another strong quarter, as we drove 36% year-over-year revenue growth and dropped most of that to the bottom line,” Chief Financial Officer Jason Warnick said in the company’s earnings release. “We entered 2024 with the goal of delivering another year of profitable growth.”

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