TLDR
- Robinhood reported record Q2 revenue of $1.31B, up 32% year over year.
- HOOD stock fell below $90 despite stronger-than-expected Q2 earnings.
- Crypto trading revenue dropped 38% to $100M during the second quarter.
- Prediction market revenue reached $156M, topping equity and crypto revenue.
- Robinhood Gold subscribers rose 39% year over year to 4.84M.
HOOD stock fell below $90 after Robinhood reported record second-quarter revenue, stronger earnings, and higher customer assets, while weaker crypto trading revenue weighed on investor sentiment.
Robinhood Beats Q2 Revenue and Earnings Estimates
Robinhood reported second-quarter revenue of $1.31 billion, up 32% from a year earlier. The figure came above analyst expectations of about $1.28 billion.
Diluted earnings reached $0.62 per share, compared with estimates near $0.44. Net income increased 48% year over year to $573 million.
Adjusted EBITDA rose 35% to $741 million. Robinhood also recorded $21.7 billion in net deposits during the quarter.
Total platform assets climbed 32% to $369 billion, while funded customers rose to 28.4 million. Average revenue per user increased 24% to $187.
Robinhood Gold subscribers reached a record 4.84 million, up 39% from a year earlier. Gold adoption reached 17% of funded customers, with annualized subscription revenue rising to $216 million.
Crypto Revenue Falls as Prediction Markets Grow
Transaction-based revenue rose 44% year over year to $776 million. Options remained the largest contributor in the category, generating $342 million.
Prediction markets generated $156 million in revenue, topping both equity and crypto revenue during the quarter. Equity revenue reached $129 million, while crypto revenue fell to $100 million.
Crypto trading revenue declined 38% from a year earlier. Robinhood app crypto volume fell 35% to $18 billion, while Bitstamp added another $22 billion in trading volume.
The weak crypto result came as Robinhood expanded other business lines. Event contracts, options, Gold subscriptions, and platform assets helped offset lower digital asset activity.
Robinhood said, “Whether it’s the Robinhood Chain, Robinhood Ventures, or Trump Accounts, our product velocity is focused on one goal: making everyone an owner.”
The company also said, “We delivered record revenues and drove new highs across equity, option, and event contract volumes, as we continue to win market share.”
HOOD Stock Trades Lower After Record Quarter
HOOD stock traded near $89.40, down 3.62% during the latest session. The decline pushed shares below $90 despite record revenue and stronger-than-expected earnings.
The market reaction showed investor caution around crypto weakness and earnings quality. Robinhood said quarterly profit included a $129 million gain tied mainly to the deconsolidation of Robinhood Ventures Fund I.
Source: KnockoutStocks
That gain added about $0.14 to diluted earnings per share. Without the benefit, underlying earnings still beat estimates, but the adjustment drew investor attention.
Operating expenses increased 33% to $734 million. Robinhood linked the rise to marketing, product investment, restructuring costs, and spending on newer businesses.
The company tightened its expected 2026 adjusted operating expense and stock-based compensation range to $2.675 billion to $2.775 billion. The prior range stood at $2.7 billion to $2.825 billion.
Robinhood also repurchased $414 million of its shares during the quarter at an average price near $94. The company now enters the next quarter with investors watching crypto trading, prediction markets, Gold subscriptions, and expense control.
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