Robinhood Beats Estimates on Strong Trading Activity and Prediction Market Growth

Robinhood Markets beat Wall Street estimates for second-quarter profit as robust trading in equities, options, and prediction markets offset weakness in cryptocurrency trading.

Retail trading remained active due to heightened market volatility driven by the U.S.-Iran conflict's impact on inflation expectations and the Federal Reserve's interest-rate outlook.

The company's adjusted earnings came in at 48 cents per share, topping analysts' average estimate of 44 cents. Transaction-based revenue jumped 44% from a year earlier to $776 million, driven by gains in equities, options, and event contracts, which generated $156 million in revenue.

Shiv Verma, chief financial officer, said businesses are humming across all cylinders with record transactions across equities, options, and prediction markets.