Robinhood posted a record $1.31 billion in revenue for the second quarter, beating analyst expectations despite its stock sliding below $90. Earnings per share reached $0.62, well above the anticipated $0.44, while net income climbed 48% year over year to $573 million. The company continues to expand, but a steep drop in crypto trading revenue dampened investor enthusiasm.
Strong Financials Amid Mixed Results
Second-quarter revenue surged 32% annually, driven by growing engagement across the platform. Total platform assets jumped 32% to $369 billion, supported by 28.4 million funded customers. Average revenue per user rose 24% to $187. Robinhood Gold subscriptions hit a record 4.84 million, a 39% increase from last year, generating $216 million in annualized subscription revenue. prediction markets generated $156 million, surpassing revenue from both equities and crypto trading.
Crypto Revenue Slumps While Other Segments Gain Traction
Crypto trading revenue declined 38% to $100 million, with trading volume down 35% to $18 billion on Robinhood’s app, though Bitstamp added $22 billion in volume. This slump coincides with Robinhood broadening its business focus beyond digital assets, bolstering areas like options trading, event contracts, and Gold subscriptions. Transaction-based revenue overall grew 44%, with options alone contributing $342 million. Robinhood’s evolving product lineup includes initiatives like the Robinhood Chain and Robinhood Ventures, aiming to increase market participation among users. Despite beating earnings and revenue estimates, the stock traded at $89.40, down 3.6%, reflecting market caution about the crypto downturn. Robinhood’s Q2 report shows the company navigating a challenging crypto environment while driving growth elsewhere.
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