Record revenue of $1.31 billion was not enough to hold Robinhood's stock up: shares fell about 4% in after-hours trading. Crypto revenue dropped 38% to $100 million, while a one-time accounting benefit supplied part of the earnings beat.
Robinhood topped Wall Street's second-quarter expectations and still lost ground, as shares fell about 4% in after-hours trading, adding to their 3.1% decline during Wednesday's session. The brokerage reported adjusted earnings per share of $0.62 against analysts' $0.43 estimate, while revenue climbed 32% from a year earlier to a record $1.31 billion.
The beat leaned on a one-time gain
Investing.com traced part of the bottom line to a $0.14 per share benefit primarily linked to the deconsolidation of Robinhood Ventures Fund I, which added $129 million to net income. The publication described the sell-off as suggesting investors were less impressed by a headline beat heavily influenced by non-operational accounting adjustments than by the underlying core trajectory.
Crypto revenue cooled while event contracts surged
Crypto revenue fell 38% year over year to $100 million from $160 million, while options, equities and prediction markets activity lifted transaction revenue. Transaction-based revenues rose 44% year over year to $776 million, anchored by event contracts revenue that swelled more than tenfold to $156 million. Net interest revenues expanded 9% to $389 million despite pressures from shifting rate dynamics.
Robinhood Chain and AI tools headline the product push
The quarter marked one of the company's biggest product pushes in recent years, among them Robinhood Chain, a blockchain network that supports tokenized U.S. stocks for eligible European customers. Robinhood cast the launch as part of its push to bring traditional financial assets onchain through tokenization. It also unveiled Agentic Trading, AI tools that let customers connect third-party AI assistants to their brokerage accounts to monitor markets and execute trades based on user-defined instructions.
Chairman and CEO Vlad Tenev said in a statement: "our product velocity is focused on one goal: making everyone an owner".
Management also lowered and tightened its full-year 2026 target 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. Robinhood Gold subscriptions jumped 39% year over year to a record 4.8 million, and net deposits hit $21.7 billion for the quarter, lifting total platform assets to $369 billion.
Coinbase reports second-quarter earnings on Thursday, and Robinhood's transaction trends often provide an early read on its results.
Sources: CoinDesk, Investing.com
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