Robinhood pulled in $100 million from crypto transactions in Q2, surpassing analyst predictions that had settled around $86.6 million. This came even as cryptocurrency revenue dropped 38% compared to last year, reflecting ongoing market challenges.
The broader financial picture for Robinhood remains strong. Total net revenue jumped 32% year-over-year, reaching $1.31 billion, while diluted earnings per share climbed 48% to $0.62. These numbers were part of a record-setting quarter for the company, fueled by gains in equities, options, and event contracts.
Crypto struggles amid wider market slump
Crypto trading volumes on Robinhood's platform declined 35% year-over-year to $18 billion. When combined with Bitstamp’s $22 billion, total crypto activity through Robinhood’s channels reached $40 billion, still down from previous highs. Bitcoin itself remains volatile, trading around $63,559, which is about 46% lower than it was a year ago.
Transaction-based revenues across the board rose 44% to $776 million, with options revenue up 29% and equities nearly doubling. Yet crypto now accounts for less than 8% of Robinhood's total net revenue, a stark contrast to two years ago when it was a primary growth driver. Meanwhile, Robinhood’s user base keeps expanding, with funded customers hitting 28.4 million and Robinhood Gold subscribers reaching a record 4.8 million.
Despite the strong financial results, the stock slipped 3.15% to close at $89.84, sliding further in after-hours trading. Part of this hesitation might be due to earnings quality concerns, as $0.14 of the $0.62 EPS included gains from deconsolidation of Robinhood Ventures Fund I.
Investments in crypto continue with Robinhood’s recent launch of Robinhood Chain, an Ethereum Layer 2 network aimed at tokenizing real-world assets. This move signals the company’s commitment to crypto innovation despite the sector's current headwinds.
This material is for informational purposes only and does not constitute financial advice.
