The logo of Robinhood Markets is seen at a pop-up event on Wall Street after the company’s initial public offering in New York City on July 29, 2021.
Andrew Kelly | Reuters
Robinhood beat Wall Street expectations for the second quarter Wednesday.
Here is how Robinhood’s results compared to Wall Street estimates, according to analysts surveyed by LSEG:
- Earnings per share: 42 cents vs. 31 cents expected
- Revenue: $989 million vs. $908 million expected
Revenue jumped 45% year-over-year to $989 million, while net income more than doubled to $386 million, up 105% from the same quarter last year.
The number of funded customers climbed by 2.3 million to 26.5 million, topping the StreetAccount estimate of 26.1 million. Investment accounts also grew 10% year-over-year to 27.4 million.
Total platform assets nearly doubled, rising 99% from a year earlier to $279 billion, driven by strong net deposits, acquired assets, and higher equity and cryptocurrency valuations, according to the release.
Total operating expenses increased 12% to $550 million. On a non-GAAP basis, adjusted operating expenses and share-based compensation rose 6% to $522 million, reflecting costs tied to the Bitstamp acquisition.
Transaction-based revenue came in at $539 million, ahead of StreetAccount’s $517 million estimate. Options trading contributed $265 million, beating the $250 million estimate.
Cryptocurrency trading came in light of estimates at $160 million versus $168 million expected, and equities also missed StreetAccount’s estimate at $66 million versus $69 million expected.
Net interest revenue was $357 million, beating expectations of $306 million. Adjusted EBITDA jumped 82% to $549 million, well above estimates of $448 million.
Average revenue per user rose 34% year-over-year to $151, topping the $142 consensus.
Robinhood Gold subscribers, which provide customers with higher cash sweep rates, larger instant deposits and enhanced research tools, increased by 1.5 million, up 76% to 3.5 million users.
“Q3 is off to a great start in July, as customers accelerated their net deposits to around $6 billion and leaned in with strong trading across categories,” said Robinhood CFO Jason Warnick in a release.
The stock is up more than 180% so far this year after a 192% gain in 2024 — a more than 400% rally over the past 12 months that outpaces every other large-cap U.S. stock and has pushed its market cap within striking distance of $100 billion.
Despite its meteoric rise, Robinhood was excluded from the S&P 500 last month — a move that surprised some investors, especially as rival fintech Block was added.
Investors have been watching closely for updates on Robinhood’s expansion into crypto infrastructure and tokenized finance — particularly after its launch of synthetic stock tokens for OpenAI and SpaceX. The assets, which trade in Europe via Robinhood’s crypto platform, give users indirect exposure through special purpose vehicles — but drew immediate backlash.
OpenAI publicly disavowed the offering, warning users that the tokens are not OpenAI equity and were issued without the company’s approval. Robinhood defended the rollout, calling it a way to expand access to pre-IPO markets, and said it built the program to withstand regulatory scrutiny.
Robinhood will host an earnings call with analysts at 5 P.M. ET.
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