Robinhood beat earnings estimates but crypto trading revenue slumped 38% to $100M, dragging shares lower. The brokerage's record quarter highlights reliance on equities and event contracts.
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Robinhood shares fell around 3% in after-hours trading Wednesday, even as the brokerage reported record quarterly revenue and earnings that beat Wall Street estimates. The drop came after crypto trading revenue slumped 38% to $100 million, the weakest segment in an otherwise strong quarter.
Total net revenue reached $1.31 billion in the second quarter, up 32% from a year earlier and above the $1.26 billion analysts had expected. Diluted earnings per share of $0.62 rose 48% from $0.42, topping consensus forecasts of roughly $0.41. Net income increased 48% to $573 million.
Robinhood said the quarter included $129 million in gains tied to the deconsolidation of its Robinhood Ventures Fund I, which added about $0.14 to diluted EPS.
Transaction-based revenue climbed 44% to $776 million, driven by growth in equities, options and event contracts. Options revenue rose 29% to $342 million. Event-contract revenue more than tenfold to $156 million. Equities revenue nearly doubled, rising 95% to $129 million.
Crypto trading revenue moved the other way, dropping 38% to $100 million. Crypto trading volume through the Robinhood app fell 35% to $18 billion. Bitstamp, which Robinhood acquired last year, contributed an additional $22 billion in volume.
Equity trading volume surged 85% to $956 billion. Options contracts traded increased 50% to 774 million. Net interest revenue rose 9% to $389 million, supported by growth in interest-earning assets even as short-term rates fell and securities lending activity weakened. Other revenue climbed 54% to $143 million, helped by Robinhood Gold subscriptions and services tied to Trump Accounts.
Total operating expenses increased 33% to $734 million, which Robinhood attributed to marketing, growth investments, restructuring charges from its June workforce reduction and costs from newer businesses including Rothera.
The company narrowed its 2026 outlook for adjusted operating expenses and stock-based compensation to a range of $2.675 billion to $2.775 billion, down from a prior forecast of $2.7 billion to $2.825 billion.
Net deposits totaled $21.7 billion in the quarter, an annualized growth rate of 28%. Platform assets rose 32% to $369 billion. Funded customers increased 7% to 28.4 million. Robinhood Gold subscribers hit a record 4.8 million, up 39%. Average revenue per user rose 24% to $187.
Robinhood repurchased $414 million of its shares during the quarter at an average price of roughly $94 per share.
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