Robinhood Smashes Earnings Beat, Eyes Product Expansion

Robinhood delivered an excellent Q2 performance, with revenue surging 45% year-over-year to $989 million and net income doubling to $386 million, soundly beating Wall Street expectations. 

Earnings per share reached 42 cents, above the projected 31 cents, as trading activity remained strong and the platform added 2.3 million funded accounts, bringing its total to 26.5 million. 

Platform assets nearly doubled to $279 billion, reflecting both rising equity and crypto valuations and aggressive asset acquisition strategies, including the TradePMR and Bitstamp deals.

Transaction-based revenue hit $539 million, with options trading leading the charge at $265 million. Average revenue per user rose 34% to $151, while Robinhood Gold subscriptions soared 76% to 3.5 million, as more users tapped into premium features like higher yield cash sweeps and deeper analytics. Retirement assets topped $20 billion, driven by growing interest in passive investing.

What Does This Mean for Me?

The fintech firm is moving beyond its retail roots with plans for a fall launch of Robinhood Banking and expansion into prediction markets, where users have already traded $2 billion worth of contracts. 

Robinhood stock, up over 180% YTD after a 192% gain in 2024, remains the year’s best-performing large-cap tech name, yet it was left out of the S&P 500. The company’s tokenized equity rollout in Europe has sparked controversy, notably with OpenAI distancing itself from synthetic shares.