Robinhood posts record Q2 revenue of $1.31 billion, despite a 38% drop in crypto earnings, as it expands into new markets and products.
Robinhood Reports Record Revenue
In its second-quarter earnings report, Robinhood announced a record revenue of $1.31 billion, marking a 32% increase year-over-year and exceeding analysts' expectations of $1.26 billion. The company also recorded a net income of $573 million, or $0.62 per share, compared to $386 million and $0.42 per share in the same quarter last year.
Mixed Performance in Crypto
While Robinhood's overall performance was strong, its crypto revenue saw a significant downturn, falling 38% to $100 million. This decline comes after a 34% drop in crypto revenue earlier this year, leading to a total crypto trading volume of $40 billion for the quarter. Notably, $18 billion of this volume occurred on Robinhood's app, a decrease of 35% year-over-year.
Growth in Event Contracts
In contrast to the decline in crypto, Robinhood's event contracts business surged, generating $156 million, a more than tenfold increase from the previous year. This segment allows users to bet on real-world outcomes, such as economic events and sports results, contributing to a 44% rise in transaction-based revenues, totaling $776 million.
Expansion of Robinhood Chain
Robinhood is actively enhancing its crypto offerings, including the launch of the public mainnet for Robinhood Chain, which enables features like tokenized stocks and decentralized lending. CEO Vlad Tenev highlighted the chain's success, stating it has processed over $12 billion in index volume since its launch. The Robinhood Chain aims to provide a more efficient platform for trading real-world assets, similar to Ethereum's layer-2 solutions.
New Product Launches
During the earnings call, Tenev also introduced two new products: Rothera, a prediction markets exchange developed with Susquehanna International Group, and agentic trading, which automates trading for users. Rothera has already processed 3.5 billion contracts since its late May launch, showcasing strong early adoption.
Record Subscriber Growth
Robinhood saw a rise in its user base, with Gold subscribers increasing from 4.3 million to 4.8 million, and net deposits reaching an all-time high of $21.7 billion. The company continues to diversify its revenue streams, with thirteen business lines now generating over $100 million annually.
