Robinhood revenue climbs 32% to record $1.3B in Q2, crypto earnings decline 38%

Robinhood (HOOD) hit record revenue for the second quarter of the year, with total net revenue rising 32% year-over-year to $1.31 billion, according to its earnings report on Wednesday. The exchange witnessed strong growth across equities, options and event contracts.

Robinhood delivers strong Q2 results as revenue hits record

The company stated that its net income increased 48% year-over-year to $573 million, while diluted earnings per share rose 48% to $0.62. The results included $129 million in gains primarily related to the deconsolidation of Robinhood Ventures Fund I.

Transaction-based revenue was a key driver of the quarter, rising 44% year-over-year to $776 million. Event contracts generated $156 million, more than 10 times the level recorded a year earlier, while options revenue increased 29% to $342 million. Equities revenue also climbed 95% to $129 million.

Net interest revenue increased 9% to $389 million, supported primarily by growth in interest-earning assets, although lower short-term interest rates and securities lending activity partly offset the gains.

Robinhood's operating expenses increased 33% year-over-year to $734 million, reflecting marketing and growth investments, restructuring charges linked to its June 2026 workforce reduction and expenses related to Trump Accounts and Rothera. Adjusted EBITDA rose 35% to $741 million.

“Whether it's the Robinhood Chain, Robinhood Ventures, or Trump Accounts, our product velocity is focused on one goal: making everyone an owner,” Robinhood Chairman and CEO Vlad Tenev said.

Robinhood's crypto business struggles despite record trading activity

However, the company's crypto revenue declined 38% year-over-year to $100 million, marking the company's weakest recorded sector for the quarter. The decline in revenue could be partly due to broader weakness across crypto markets during the period.

Robinhood also highlighted record trading activity, including $956 billion in equity notional trading volume, 774 million options contracts and 13.6 billion event contracts traded. Crypto notional trading volume totaled $40 billion, including $18 billion on the Robinhood app and $22 billion through Bitstamp.

The earnings release comes as analysts share positive support for Robinhood. Bernstein previously raised its price target for Robinhood from $130 to $160, citing potential growth in the company's prediction markets business and new revenue streams from perpetual futures and its Ethereum Layer 2, Robinhood Chain.

The firm applied a 2028 calendar-year earnings-per-share estimate of $4.56. Bernstein also suggested that Robinhood's prediction markets revenue, boosted by its Rothera exchange, could reach $1.7 billion by 2028.

Robinhood's earnings report comes as big tech firms share their Q2 updates. Meta reported lower-than-expected earnings per share of $6.18, slightly below analysts' expectations of $7.22, while revenue came in at $60.8 billion.

HOOD traded at $89.84 on Wednesday, down 1.4% in after-hours trading at the time of writing.