Robinhood Markets Inc (NASDAQ:HOOD) reported a 45% jump in second-quarter revenue, beating Wall Street estimates, as a surge in crypto and options trading activity boosted the brokerage’s transaction-based income.
Revenue for the quarter came in at $989 million, above analysts’ expectations of $913 million, while adjusted earnings per share doubled to $0.42, compared with estimates of $0.31.
"Q2 was another great quarter as we drove market share gains, closed the acquisition of Bitstamp and remained disciplined on expenses," CFO Jason Warnick said.
Transaction-based revenue rose 65% year-over-year to $539 million, driven by a 98% increase in cryptocurrency revenue to $160 million and a 46% rise in options revenue to $265 million. Equity trading revenue climbed 65% to $66 million, though it missed estimates.
CEO Vlad Tenev said Robinhood users traded nearly 1 billion prediction contracts during the quarter—more than double the level seen in the first quarter—and called the company's recent launch of tokenized assets “the biggest innovation our industry has seen in the past decade.”
The company reported $549 million in adjusted EBITDA, up 82% from a year earlier, while adjusted operating expenses came in at $444 million, below estimates.
Customer engagement and platform growth continued to accelerate. Robinhood added 10% more funded customers year-over-year, reaching 26.5 million. Platform assets nearly doubled to $279 billion, and average revenue per user climbed 34% to $151.
The number of Robinhood Gold subscribers surged 76% to 3.5 million, while retirement assets under custody more than doubled to $19 billion.
Crypto trading volumes on the Robinhood app grew 32% to $28 billion, and Bitstamp—acquired during the quarter—added another $7 billion in volume. The company expanded its crypto footprint globally, launching Stock Tokens in Europe and expanding access to 30 EU countries. It also entered an agreement to acquire Canadian crypto firm WonderFi.
Looking ahead, Robinhood raised its full-year guidance for adjusted operating expenses and stock-based compensation to a range of $2.15 billion to $2.25 billion, citing continued investment in platform growth and international expansion.