Robinhood's second-quarter profit and revenue both topped Wall Street estimates on record trading volumes, even as a crypto slowdown cut into results. Shares fell anyway, sliding further below key technical levels the same day Coinbase was due to report its own quarterly earnings.
Robinhood's second-quarter earnings per share jumped 48% to 62 cents, beating estimates of 43 cents. Revenue rose 32% year over year to a record $1.31 billion, topping FactSet's forecast of $1.287 billion. Despite the beat, Robinhood stock fell 2.5% to 87.98 Thursday, the same day Coinbase was due to report its own second-quarter results.
Robinhood Earnings Accelerate
Both the top and bottom lines accelerated sharply from the first quarter as Robinhood posted record trading volumes across equities, options and event contracts in the quarter. CFO Shiv Verma said in the earnings release: "new highs across equity, option and event contract volumes".
The results came despite a tough comparison: Robinhood's earnings had more than doubled in the year-ago quarter amid a cryptocurrency surge. This time, crypto revenue sank 38% as a bitcoin sell-off and a broader crypto slump weighed on the business, though that decline was smaller than the 45% drop analysts had feared. Equities revenue almost doubled, up 95%. Options revenue grew 29%.
Robinhood Stock Slides
Robinhood stock slid 3.2% Wednesday in the broader session. Shares then fell 2.5% to 87.98 Thursday, pushing further below key short- and long-term moving averages.
Coinbase, due to report its own results late Thursday, shed 4.7% Wednesday before gaining 0.5% Thursday, also trading below its key averages. Charles Schwab and Interactive Brokers, which have already posted robust Q2 results on a trading boom, moved in opposite directions: Schwab shares fell, while Interactive Brokers popped 3.5% after a 5.1% drop Wednesday.
Robinhood Gold Subscribers In Focus
A growing focus for Robinhood is its Gold subscription program. Membership reached 4.3 million users in Q1, up 36% year over year, then touched a record 4.8 million users in Q2, up 39% from a year earlier.
Investors are watching for sustained growth in Gold subscribers because it means recurring, predictable revenue — in contrast with the more cyclical crypto business.
Source: Investor's Business Daily
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