tl;dr
Robinhood reported stronger-than-expected Q2 results with $989 million in sales, a 45% year-over-year increase, and earnings per share of $0.42, exceeding analyst forecasts. Profits reached $386 million, up $50 million from the previous year. Shares rose to $110 in after-hours trading, with a 184% y...
Robinhood delivered a stronger-than-expected second quarter, surpassing analyst forecasts despite a slowdown in crypto trading revenue. The retail broker reported $989 million in total sales, marking a 45% increase year-over-year and exceeding the expected $913 million. Earnings per share reached $0.42, translating to $386 million in profits, up $50 million from last year and well above the anticipated $276.6 million.
Following the earnings announcement, Robinhood's shares surged in after-hours trading to $110 before settling near $105. The company has seen a remarkable 184% stock price increase year-to-date, significantly outperforming crypto-focused competitors like Coinbase, which rose 51% to $375 during the same period.
Crypto trading revenue totaled $160 million in Q2, up 98% from last year but down from $252 million the previous quarter, influenced in part by geopolitical tensions such as the U.S. trade war. Meanwhile, option and equity transaction revenues grew to $265 million and $66 million, respectively, with options income reclaiming its role as Robinhood’s primary revenue driver after robust crypto activity late last year.
Since launching crypto support in 2018, Robinhood has strategically embraced regulatory opportunities and leveraged blockchain technology to fuel international expansion. The company is developing its own Ethereum layer-2 scaling solution inspired by Arbitrum to facilitate tokenized asset trading. Despite criticism from companies like OpenAI over stock tokens, CEO Vlad Tenev regards this initiative as a significant milestone with plans to broaden its scope.
In June, Robinhood's stock hit a record high of $113 shortly after launching tokenized stock trading in Europe and unveiling its proprietary blockchain network. The company also introduced perpetual futures trading, paralleling features common on crypto exchanges. Recent acquisitions include the Luxembourg-based Bitstamp and Canadian crypto exchange WonderFi, backed by Shark Tank’s Kevin O’Leary, reflecting Robinhood’s ongoing commitment to strengthening its crypto footprint globally.