Robinhood Markets Inc. (Robinhood (HOOD)) reported its second-quarter results after Wednesday's closing bell, and the numbers were impressive. The company beat analyst estimates on both the top and bottom lines, sending shares up slightly in extended trading.
Robinhood posted quarterly earnings of 62 cents per share, crushing the analyst consensus estimate of 42 cents by 47.62%. Revenue came in at $1.31 billion, above the Street estimate of $1.28 billion and up from $989 million in the same period last year. That's a 32% jump — not too shabby for a company that's often seen as a bellwether for retail trading.
Let's dig into the details. Transaction-based revenues were the star of the show, rising 44% year-over-year to $776 million. The big driver? Event contracts, which brought in $156 million — that's up more than 10x from last year. Options revenue also shined at $342 million, up 29%, and equities revenue hit $129 million, up 95%. But not everything was rosy: cryptocurrencies revenue fell 38% to $100 million, reflecting the volatile nature of crypto markets.
Net interest revenues grew 9% to $389 million, thanks to growth in interest-earning assets, though lower short-term interest rates and securities lending activity partially offset the gains. Other revenues jumped 54% to $143 million, driven by Trump Account service revenues and increased Robinhood Gold subscription revenues.
Customer metrics were strong across the board. Funded customers increased by 1.9 million, or 7%, year-over-year to 28.4 million. Investment accounts grew by 2.5 million, or 9%, to 29.9 million. Total platform assets surged 32% to $369 billion, fueled by net deposits and higher equity valuations, though lower cryptocurrency valuations tempered the growth. Net deposits were $21.7 billion in the quarter, an annualized growth rate of 28% relative to platform assets at the end of Q1. Over the past 12 months, net deposits totaled $75.7 billion, a growth rate of 27%.
Robinhood Gold subscribers — the company's premium subscription service — increased by 1.4 million, or 39%, to 4.8 million. Average revenue per user (ARPU) rose 24% to $187. That's a sign that users are not just signing up but also engaging more deeply with the platform.
CEO Vlad Tenev summed up the company's strategy: "Whether it's the Robinhood Chain, Robinhood Ventures, or Trump Accounts, our product velocity is focused on one goal: making everyone an owner." He added, "Broad ownership is essential to a free, stable, and prosperous society."
As for the stock, Robinhood shares were up 0.54% to $90.02 in Wednesday's extended trading. Not a huge move, but the market seems to be digesting a solid report.
