Robinhood shares fell after Q2 crypto revenue dropped 38% to $100 million. Event contracts surged 10x to $156 million. Total revenue hit $1.31 billion, above estimates. The brokerage lowered its 2026 expense outlook.
Robinhood shares fell in after-hours trading after the brokerage reported a steep drop in crypto trading revenue, even as second-quarter revenue and earnings hit record levels.
The stock had gained attention before earnings on bullish targets from Goldman Sachs and Bernstein. But investors focused on the weaker crypto line and rising operating costs.
Total net revenue came in at $1.31 billion, up 32% from $989 million a year earlier and above analyst expectations of roughly $1.26 billion. Diluted earnings per share rose 48% to $0.62 from $0.42 in the same period last year. Analysts had expected earnings near $0.41 per share. Net income increased 48% to $573 million.
Quarterly results included $129 million in gains tied to the deconsolidation of Robinhood Ventures Fund I. Those gains added about $0.14 to diluted earnings per share, the company said.
Crypto trading revenue fell 38% to $100 million. Crypto volume through the Robinhood app dropped 35% to $18 billion. Bitstamp, which Robinhood acquired, added another $22 billion in trading volume.
Event contracts became a much bigger revenue driver during the quarter. Revenue from that category increased more than tenfold to $156 million.
Transaction-based revenue climbed 44% to $776 million. Growth in equities, options, and event contracts helped offset the decline in crypto activity. Options revenue rose 29% to $342 million. Equities revenue nearly doubled to $129 million as equity trading volume increased 85% to $956 billion. Options contracts traded rose 50% to 774 million.
Net interest revenue rose 9% to $389 million. Robinhood said higher interest-earning assets helped offset lower short-term rates and weaker securities lending activity.
The brokerage recorded $21.7 billion in net deposits during the quarter, representing a 28% annualized growth rate. Total platform assets increased 32% to $369 billion. Funded customers rose 7% to 28.4 million. Robinhood Gold subscribers climbed 39% to a record 4.8 million.
Average revenue per user increased 24% to $187. Other revenue rose 54% to $143 million, supported by Gold subscriptions and services tied to Trump Accounts.
Operating expenses increased 33% to $734 million. The company linked the rise to marketing, growth investments, restructuring charges, and spending on newer businesses.
Robinhood also lowered and narrowed its 2026 outlook for adjusted operating expenses and share-based compensation. The new range is $2.675 billion to $2.775 billion, down from its prior $2.7 billion to $2.825 billion forecast.
The company repurchased $414 million of its shares during the quarter at an average price near $94 per share. Investors now await more details on crypto demand, AI trading tools, Bitstamp integration, and expense control after the record quarter.
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