Robinhood Crypto Revenue Beats Estimates Despite 38% Year-Over-Year Decline
Robinhood's crypto revenue for the second quarter came in at $100 million, beating analyst estimates of $86.6 million. Despite this beat, crypto revenue still fell by 38% year-over-year due to a decline in trading volumes.
The company reported that its total net revenues rose 32% to $1.31 billion for the quarter, with diluted earnings per share increasing 48% to $0.62. This growth was driven primarily by transaction-based revenues, which rose 44% to $776 million.
Crypto revenue now accounts for less than 8% of Robinhood's total net revenues, a significant decline from two years ago when it was one of the company's key growth drivers. However, management remains committed to funding crypto initiatives, with the recent launch of Robinhood Chain, an Ethereum Layer 2 built for tokenized real-world assets.
The stock price reacted negatively to the earnings report, closing down 3.15% at $89.84 and easing further in after-hours trading.