Robinhood slides 4% despite earnings beat as crypto revenue cools
The brokerage reported $100 million revenue from crypto trading, a 38% decline in a year, offset by stronger options, equities and prediction markets activity.
- Robinhood beat Wall Street’s second-quarter expectations with adjusted earnings of $0.62 a share and record revenue of $1.31 billion, but its stock fell in 4% in extended trading.
- The brokerage’s results showed weaker crypto trading, with crypto revenue down 38% to $100 million from a year earlier, offset by stronger activity in options, equities and prediction markets.
- Robinhood accelerated its product rollout with the launch of Robinhood Chain for tokenized U.S. stocks in Europe and new Agentic Trading AI tools that automate investing while keeping users’ controls in place.
Robinhood (HOOD) topped Wall Street's second-quarter expectations, but shares fell about 4% in after-hours trading, adding to their 3.1% decline during Wednesday's session.
The online brokerage reported adjusted earnings per share of $0.62, well ahead of analysts' $0.43 estimate, while revenue climbed 32% from a year earlier to a record $1.31 billion, narrowly topping the $1.29 billion consensus forecast.
The results reflected strength across Robinhood's expanding product lineup, even as crypto trading cooled. Crypto revenue fell 38% year over year to $100 million from $160 million, while transaction revenue was lifted by surging options, equities and prediction markets activity.
"Whether it's the Robinhood Chain, Robinhood Ventures, or Trump Accounts, our product velocity is focused on one goal: making everyone an owner," Vlad Tenev, Chairman and CEO of Robinhood, said in a statement.
The second quarter marked one of Robinhood's biggest product pushes in recent years. The company launched Robinhood Chain, a blockchain network that supports tokenized U.S. stocks for eligible European customers as part of its push to bring traditional financial assets onchain.
Activity on the network has grown quickly since launch, with hundreds of millions of dollars in daily decentralized exchange volume and tokenized stocks such as GameStop, Nvidia and SpaceX emerging among its most actively traded real-world assets. While memecoins and stablecoins still account for much of the chain's activity, trading in tokenized equities has expanded steadily in recent weeks.
The company also unveiled Agentic Trading, a new set of AI tools that allow customers to connect third-party AI assistants to their brokerage accounts to monitor markets and execute trades based on user-defined instructions. It said the products are designed to automate investing while keeping users in control through separate trading accounts, spending limits and manual approval options.
Robinhood's results also offer an early look at what investors could expect when Coinbase (COIN) reports second-quarter earnings on Thursday. While the two companies have different business models, both are heavily exposed to retail trading activity and crypto market sentiment, meaning Robinhood's transaction trends often provide an early read on Coinbase's results. Analysts will be watching whether stronger crypto prices and trading volumes during the quarter translated into higher transaction revenue for Coinbase after Robinhood's report.
The company will hold an investor call at 5pm E.T.
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