Robinhood's Crypto Revenue Slides, But Record Quarter Beats Expectations

Robinhood posted record second-quarter revenue and earnings despite a decline in cryptocurrency transaction revenue. The company reported that crypto transaction revenue fell to $100 million from about $160 million a year earlier, a drop of 38%. However, overall revenue rose 32% year-over-year to $1.31 billion, while net income increased 48% to $573 million.

The price of Robinhood shares was down 3.15% on Wednesday ahead of the company's earnings release. Despite this decline, Robinhood continued expanding its digital asset business during the quarter, completing its acquisition of Canadian crypto platform WonderFi and unveiling the public mainnet of Robinhood Chain.

Growth in event contracts, options, and equities more than offset the weakness in cryptocurrency trading revenue. Event contract revenue surged over tenfold to $156 million, while options revenue rose 29% to $342 million and equities revenue jumped 95% to $129 million. The company also reported record net deposits of $21.7 billion during the quarter.

Robinhood lowered its 2026 outlook for adjusted operating expenses and share-based compensation to between $2.675 billion and $2.775 billion, from $2.7 billion to $2.825 billion previously. Adjusted EBITDA rose 35% to $741 million, while total operating expenses increased 33% to $734 million.