Robinhood beat Wall Road expectations for the second quarter Wednesday, extending a scorching streak that has made it the best-performing large-cap U.S. tech inventory this yr.
Right here is how Robinhood’s outcomes in comparison with Wall Road estimates, in response to analysts surveyed by LSEG:
- Earnings per share: 42 cents vs. 31 cents anticipated
- Income: $989 million vs. $908 million anticipated
Income jumped 45% year-over-year to $989 million, whereas web revenue greater than doubled to $386 million, up 105% from the identical quarter final yr.
The variety of funded prospects climbed by 2.3 million to 26.5 million, topping the StreetAccount estimate of 26.1 million. Funding accounts additionally grew 10% year-over-year to 27.4 million.
Whole platform property practically doubled, rising 99% from a yr earlier to $279 billion, pushed by sturdy web deposits, acquired property, and better fairness and cryptocurrency valuations, in response to the discharge.
Robinhood is closing the hole with Coinbase because it pushes past retail buying and selling into full-scale wealth administration. The corporate has been aggressively providing deposit matches to lure purchasers from Constancy and Schwab, and property below administration have grown with its TradePMR acquisition.
Whole working bills elevated 12% to $550 million. On a non-GAAP foundation, adjusted working bills and share-based compensation rose 6% to $522 million, reflecting prices tied to the Bitstamp acquisition.
Transaction-based income, which is a proxy for buying and selling exercise, got here in at $539 million, forward of StreetAccount’s $517 million estimate. Choices buying and selling contributed $265 million, beating the $250 million estimate, whereas crypto and equities income have been barely under forecasts, signaling a tilt towards higher-margin derivatives buying and selling.
Cryptocurrency buying and selling got here in mild of estimates at $160 million versus $168 million anticipated, and equities additionally missed StreetAccount’s estimate at $66 million versus $69 million anticipated.
Internet curiosity income was $357 million, beating expectations of $306 million. Adjusted EBITDA jumped 82% to $549 million, effectively above estimates of $448 million.
Common income per consumer rose 34% year-over-year to $151, topping the $142 consensus.
Robinhood Gold subscribers, which offer prospects with larger money sweep charges, bigger prompt deposits and enhanced analysis instruments, elevated by 1.5 million, up 76% to three.5 million customers.
“We’re making lots of progress in what I’d name extra passive, long-term areas,” CFO Jason Warnick informed CNBC. “On the finish of Q2 we had $19 billion in retirement accounts, and we’re already over $20 billion. One million and a half prospects have retirement accounts, and we expect there’s lots of room for extra prospects to arrange retirement accounts and begin compounding advantages early.”
Within the firm’s earnings name, Warnick mentioned Robinhood’s new betting and prediction markets have additionally taken off, with prospects buying and selling practically $1 billion value of contracts final quarter and greater than $2 billion cumulatively since launch. He mentioned engagement is strongest in sports activities wagers however hinted at plans to increase into broader cultural and news-driven markets.
CEO Vlad Tenev mentioned the corporate sees “an enormous alternative” in sports activities betting and is constructing out expertise to help “plenty of various kinds of contracts,” with plans to broaden its choices additional.
Tenev additionally teased the launch of Robinhood Banking this fall, saying the brand new product will let prospects “carry much more of their property” onto the platform.
“We simply rolled this out internally to the complete worker base. It is actually good,” Tenev mentioned. “I feel you are actually going to love it. It is a very modern providing.”
Regardless of an earnings beat, shares slipped through the name after Warnick mentioned that prices tied to the corporate’s Bitstamp acquisition will whole roughly $65 million in 2025, bringing full-year adjusted working bills and stock-based compensation prices to between $2.15 billion and $2.25 billion. That does not embody anticipated prices from the pending WonderFi acquisition or provisions for credit score losses.
Heading into the report, Robinhood’s inventory was up greater than 180% this yr, outpacing each tech firm valued at $5 billion or extra, following a 192% achieve in 2024.
Regardless of its meteoric rise, Robinhood was excluded from the S&P 500 final month — a transfer that stunned some buyers, particularly as rival fintech Block was added.
Traders have been watching intently for updates on Robinhood’s enlargement into crypto infrastructure and tokenized finance — notably after its launch of artificial inventory tokens for OpenAI and SpaceX. The property, which commerce in Europe through Robinhood’s crypto platform, give customers oblique publicity by means of particular goal autos — however drew fast backlash.
OpenAI publicly disavowed the providing, warning customers that the tokens are not OpenAI fairness and have been issued with out the corporate’s approval. Robinhood defended the rollout, calling it a method to increase entry to pre-IPO markets, and mentioned it constructed this system to face up to regulatory scrutiny.
WATCH: Robinhood heads into earnings on Wall Road scorching streak
