Robinhood Crushes Earnings Expectations Amid Crypto Decline
Robinhood Markets, the popular trading platform, reported its second-quarter earnings, surpassing analyst expectations. The company's revenue reached a record $1.31 billion, up 32% from the previous year. This growth was driven by various business segments, with event contracts revenue rising more than tenfold to $156 million and equities revenue nearly doubling to $129 million.
Options trading also saw a significant increase, with revenue rising 29% to $342 million. However, the crypto segment experienced a decline of 38% to $100 million, with notional volume on the Robinhood app falling by 35%. Despite this, the company reported record-breaking metrics in other areas, including net deposits reaching $21.7 billion and total platform assets rising 32% to $369 billion.
The launch of Trump Accounts after the quarter closed has been a significant contributor to user engagement, with over 7 million sign-ups and nearly $1.5 billion in deposits. Robinhood also lowered its 2026 adjusted operating expense and share-based compensation outlook to between $2.675 billion and $2.775 billion.