Robinhood beat Wall Street expectations for the second quarter Wednesday, extending a hot streak that has made it the best-performing large-cap U.S. tech stock this year.
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.
Robinhood is closing the gap with Coinbase as it pushes beyond retail trading into full-scale wealth management. The company has been aggressively offering deposit matches to lure clients from Fidelity and Schwab, and assets under management have grown with its TradePMR acquisition.
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, which is a proxy for trading activity, came in at $539 million, ahead of StreetAccount’s $517 million estimate. Options trading contributed $265 million, beating the $250 million estimate, while crypto and equities revenue were slightly below forecasts, signaling a tilt toward higher-margin derivatives trading.
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.
“We’re making a lot of progress in what I would call more passive, long-term areas,” CFO Jason Warnick told CNBC. “At the end of Q2 we had $19 billion in retirement accounts, and we’re already over $20 billion. A million and a half customers have retirement accounts, and we think there’s a lot of room for more customers to set up retirement accounts and start compounding benefits early.”
In the company’s earnings call, Warnick said Robinhood’s new betting and prediction markets have also taken off, with customers trading nearly $1 billion worth of contracts last quarter and more than $2 billion cumulatively since launch. He said engagement is strongest in sports wagers but hinted at plans to expand into broader cultural and news-driven markets.
CEO Vlad Tenev said the company sees “a big opportunity” in sports betting and is building out technology to support “lots of different types of contracts,” with plans to broaden its offerings further.
Tenev also teased the launch of Robinhood Banking this fall, saying the new product will let customers “bring even more of their assets” onto the platform.
“We just rolled this out internally to the full employee base. It’s really good,” Tenev said. “I think you’re really going to like it. It’s a very innovative offering.”
Despite an earnings beat, shares slipped during the call after Warnick said that costs tied to the company’s Bitstamp acquisition will total roughly $65 million in 2025, bringing full-year adjusted operating expenses and stock-based compensation costs to between $2.15 billion and $2.25 billion. That doesn’t include anticipated costs from the pending WonderFi acquisition or provisions for credit losses.
Heading into the report, Robinhood’s stock was up more than 180% this year, outpacing every tech company valued at $5 billion or more, following a 192% gain in 2024.
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.
WATCH: Robinhood heads into earnings on Wall Street hot streak
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