Key facts
- Robinhood exceeded Wall Street's second-quarter earnings expectations with adjusted EPS of $0.62.
- The company reported record quarterly revenue of $1.31 billion.
- Crypto revenue declined 38% year-over-year to $100 million.
- Robinhood launched Robinhood Chain for tokenized U.S. stocks in Europe.
- New AI tools, Agentic Trading, were introduced to automate investing.
Robinhood surpassed Wall Street's second-quarter financial targets, reporting adjusted earnings per share of $0.62 and record revenue of $1.31 billion. Despite beating estimates, the brokerage's stock experienced a decline of approximately 4% in after-hours trading, adding to a 3.1% drop during the regular session.
The company's performance was characterized by robust activity in options, equities, and prediction markets, which offset a significant cooling in its cryptocurrency trading segment. Crypto revenue saw a 38% year-over-year decrease, falling to $100 million from $160 million.
Robinhood highlighted its accelerated product development, including the launch of Robinhood Chain in Europe, a blockchain network designed to support tokenized U.S. stocks for eligible customers. The company also introduced Agentic Trading, a suite of AI tools aimed at automating investment processes while maintaining user control.
Vlad Tenev, Chairman and CEO of Robinhood, stated that the company's product velocity is focused on the goal of making everyone an owner, citing initiatives like Robinhood Chain, Robinhood Ventures, and Trump Accounts.
The company's results provide an early indicator for investors anticipating Coinbase's upcoming earnings report, as both firms are significantly influenced by retail trading activity and cryptocurrency market sentiment.