Robinhood shares moved lower after the brokerage reported weaker crypto trading revenue, even as second-quarter revenue and earnings reached record levels.
Robinhood Beats Earnings Estimates
Robinhood reported total net revenue of $1.31 billion for the second quarter, up 32% from $989 million a year earlier. The result came above analyst expectations of about $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, while net income increased 48% to $573 million.
The company said quarterly results included $129 million in gains mainly linked to the deconsolidation of Robinhood Ventures Fund I. Those gains added about $0.14 to diluted earnings per share.
Robinhood shares still fell in after-hours trading as investors focused on weaker crypto revenue and higher operating expenses. The stock had gained attention before earnings after bullish targets from Goldman Sachs and Bernstein.
Crypto Trading Revenue Drops 38%
Transaction-based revenue climbed 44% to $776 million during the quarter. Growth in equities, options, and event contracts helped offset the decline in crypto activity.
Crypto trading revenue fell 38% to $100 million. Crypto volume through the Robinhood app dropped 35% to $18 billion, while Bitstamp added another $22 billion in trading volume.
Event contracts became a stronger revenue driver during the quarter. Revenue from that category increased more than tenfold to $156 million.
Options revenue rose 29% to $342 million, while equities revenue nearly doubled to $129 million. Equity trading volume increased 85% to $956 billion, and 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.
User Growth and Costs Remain in Focus
Robinhood recorded $21.7 billion in net deposits during the quarter. The company said that represented a 28% annualized growth rate.
Total platform assets increased 32% to $369 billion. Funded customers rose 7% to 28.4 million, while 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 Robinhood 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.
