On July 29, Robinhood reported its strongest quarterly revenue yet, driven by a sharp rise in event contracts, options trading, and equities. Yet, the stock fell, pressured by falling crypto revenue and one-time gains fueling the earnings.
Shares closed at $89.84, down 3.15% from $92.76, then slid another 1% after hours to around $88.93. Investors appeared cautious despite a 32% increase in quarterly revenue, which hit $1.31 billion for the quarter ending June 30.
Net income jumped 48% year-over-year to $573 million, with earnings per share at $0.62. However, this included $129 million in gains mostly linked to the exit of Robinhood Ventures Fund I, inflating EPS by 14 cents and masking the company’s core profitability.
Transaction-based revenue rose 44% to $776 million. Event contracts exploded, generating $156 million, more than 10 times last year’s figure. Users traded over 13.6 billion event contracts this quarter, marking prediction markets as a key growth area.
Options trading brought in $342 million, up 29%, while equities surged 95% to $129 million. Robinhood’s new joint venture exchange with Susquehanna, Rothera, processed over 3.5 billion contracts since launching in June.
Net interest income climbed 9% to $389 million. Additional revenue streams grew 54% to $143 million, boosted by the Trump Account service and more subscribers to Robinhood Gold.
Meanwhile, cryptocurrency transaction revenue dropped 38% to $100 million. Total crypto volume reached $40 billion, split between $18 billion on Robinhood’s main app and $22 billion via Bitstamp. Crypto volume on Robinhood’s core app fell 35% year-over-year.
This article is for informational purposes and does not constitute financial advice.
