Robinhood topped Q2 estimates ($0.62 EPS, $1.31B revenue). Shares fell 4% as crypto revenue dropped 38% to $100M. New products like Robinhood Chain and AI trading tools signal a shift.
Robinhood Markets (HOOD) topped Wall Street's second-quarter expectations. Shares fell about 4% in after-hours trading, extending a 3.1% decline from the regular session.
The online brokerage reported adjusted earnings per share of $0.62, well ahead of the $0.43 consensus estimate. Revenue climbed 32% from a year earlier to a record $1.31 billion, narrowly beating the $1.29 billion forecast.
Crypto revenue fell 38% year over year to $100 million from $160 million. The decline came even as the broader crypto market traded in a relatively stable range during the quarter, suggesting retail interest on the platform may have softened. Transaction revenue was lifted by surging options, equities and prediction markets activity.
"Whether it's the Robinhood Chain, Robinhood Ventures, or Trump Accounts, our product velocity is focused on one goal: making everyone an owner," Chairman and Chief Executive Officer Vlad Tenev said in a statement.
The second quarter marked one of Robinhood's biggest product pushes in recent years. The company launched Robinhood Chain, a blockchain network that supports tokenized U.S. stocks for eligible European customers. Activity on the network has grown quickly, with hundreds of millions of dollars in daily decentralized exchange volume and tokenized stocks such as GameStop and Nvidia emerging among its most actively traded real-world assets. Memecoins and stablecoins still account for much of the chain's activity. Trading in tokenized equities has expanded steadily in recent weeks.
Robinhood also unveiled Agentic Trading, a set of AI tools that let customers connect third-party AI assistants to their brokerage accounts to monitor markets and execute trades based on user-defined instructions. The products are designed to automate investing while keeping users in control through separate trading accounts, spending limits and manual approval options.
The results offer an early read for Coinbase Global Inc. (COIN), which reports second-quarter earnings on Thursday. Both companies share exposure to retail trading activity and crypto market sentiment. Robinhood's transaction trends often provide an early signal for Coinbase's results. Analysts will watch whether stronger crypto prices and trading volumes during the quarter translated into higher transaction revenue for Coinbase.
HOOD carries an Alpha Score of 37, a Mixed label, placing it near Coinbase's 36 in the Financials sector.
The company will hold an investor call at 5 p.m. Eastern time.
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