Robinhoodโs Q2 revenue grew 32% year-over-year, hitting a record $1.31 billion as growth across options, equities, and event contracts surged. Wall Street had predicted $1.26 billion in revenue for Robinhood during Q2.
Despite the impressive numbers, the platformโs crypto revenue fell substantially, declining 38% year-over-year to $100 million.
Robinhoodโs Record Quarter
Robinhood has reported robust growth across its equities, events contracts, and options segments. According to the companyโs earnings report, its net income grew 48% year-over-year to $573 million, while diluted earnings per share increased 48% to $0.62. The quarterly results also include $129 million in gains tied to the deconsolidation of the Robinhood Ventures Fund I. Chief Financial Officer Shiv Verma stated,
โWe delivered record revenues and drove new highs across equity, option, and event contract volumes, as we continue to win market share.โ
Robinhoodโs record numbers were primarily driven by a surge in transaction-based revenue, which increased 44% year-over-year to $776 million. The platform generated $156 million from events contracts, a 10x increase from the previous year. Revenue from options jumped 29% to $342 million, and equities revenue jumped 95% to $129 million. Revenue from net interest rose 9% to $389 million. However, these gains were partly offset by lower short-term interest rates and securities lending activity. CEO Vlad Tenev stated,
โWhether it’s the Robinhood Chain, Robinhood Ventures, or Trump Accounts, our product velocity is focused on one goal: making everyone an owner.โ
Meanwhile, Robinhoodโs operating expenses rose 33% year-over-year to $734 million, largely due to investments in marketing and growth, restructuring charges linked with its June workforce reduction, and other expenses related to Trump Accounts and Rothera. Lastly, Adjusted EBITDA rose 35% to $741 million. Despite the strong numbers, HOOD is trading around $89.84, down over 3%.
Crypto Business Struggles
While Robinhoodโs numbers are impressive, its crypto business struggled, declining 38% year-over-year to $100 million. The decline can be attributed to a broader downturn in the cryptocurrency market due to geopolitical and policy headwinds. However, the trading platform reported record trading activity, including an equity notional trading volume of $956 billion, 774 million options contracts, and 13.6 billion events contracts. Robinhood reported a crypto notional trading volume of $40 billion, with $18 billion through the Robinhood app and $22 billion through Bitstamp.
Analysts Bullish On Robinhood
Market analysts are bullish on Robinhood, with Bernstein raising its price target on HOOD from $130 to $160. Analysts expect the platformโs retail trading, prediction markets, and equities businesses will drive significant growth. They also expect new revenue from perpetual futures and Robinhood Chain. Bernstein analysts have applied a calendar-year earnings-per-share estimate of $4.56 for 2028, with revenue from prediction markets estimated to reach $1.7 billion by 2028.
Robinhood debuted in the prediction markets space in October 2024, offering presidential-election contracts. It launched a dedicated prediction markets hub in March 2025, and Rothera, a CFTC-licensed exchange and clearinghouse, in June. Rothera is independently managed via a joint venture with Susquehanna International Group.
Robinhood Chain
Robinhood recently launched Robinhood Chain, a layer-2 network built using Arbitrumโs tech stack. The total value locked (TVL) in Robinhood Chain is $325 million as of Tuesday. CEO Vlad Tenev stated Robinhood Chain has seen โgreat initial traction,โ and decentralized exchanges have processed over $12 billion in trading volume. Tenev added that Robinhood Chain has already surpassed 150 million transactions and was the fastest to reach 100 million.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
