Robinhood prediction markets drive $1.31B quarter

Robinhood Markets reported record second-quarter revenue on July 29, as growth in event contracts, options and equities offset another decline in cryptocurrency trading.

According to its Q2 earnings release, total net revenue rose 32% year over year to $1.31 billion for the quarter ended June 30.

Net income increased 48% to $573 million, while diluted earnings per share reached $0.62. However, Robinhood said net income included $129 million of gains mainly tied to the deconsolidation of Robinhood Ventures Fund I. Those gains added $0.14 to diluted EPS.

The wider revenue mix also expanded. Net interest revenue rose 9% to $389 million, while other revenue increased 54% to $143 million. Robinhood attributed the latter increase mainly to Trump Account service revenue and higher Gold subscription revenue.

Event contracts became Robinhood’s fastest-growing revenue line

Transaction-based revenue increased 44% to $776 million. Event contract revenue reached $156 million, more than 10 times the year-earlier level, while event contracts traded rose above 13.6 billion. Options revenue climbed 29% to $342 million, and equities revenue rose 95% to $129 million.

Robinhood Chief Financial Officer Shiv Verma said “the business is firing on all cylinders,” a management assessment rather than a reported metric. The company also said Rothera, its CFTC-licensed exchange and clearinghouse joint venture with Susquehanna, had processed more than 3.5 billion contracts since launching in June. Robinhood has explored adding more prediction-market suppliers as competition grows.

Cryptocurrency transaction revenue dropped 38% to $100 million. Robinhood reported $40 billion in crypto notional volume, including $18 billion on its main app and $22 billion through Bitstamp. App-based crypto volume fell 35% from a year earlier, showing that the acquired exchange supplied more than half of the quarter’s reported crypto activity.

Even so, Robinhood continued building its digital-asset business. The company launched Robinhood Chain’s public mainnet, introduced Stock Tokens for eligible users in more than 120 countries and debuted Robinhood Earn, its first decentralized lending product inside the app. In related coverage, crypto.news explained how Robinhood Chain uses an Ethereum layer-2 network for tokenized assets and decentralized finance.

Robinhood also completed its WonderFi acquisition during the quarter, marking its formal entry into Canada. As crypto.news reported, the deal added regulated platforms including Bitbuy and Coinsquare. International funded customers surpassed one million, although Robinhood did not separate WonderFi’s quarterly revenue contribution. The company said it “plans to launch crypto offerings in the UK,” but provided no launch date.

Deposits and customer assets reached new records

Net deposits reached $21.7 billion, equal to a 28% annualized growth rate relative to first-quarter platform assets. Total platform assets increased 32% to $369 billion, while funded customers rose 7% to 28.4 million. Investment accounts increased 9% to 29.9 million.

Robinhood Gold subscribers grew 39% to 4.8 million, and average revenue per user increased 24% to $187. The company also repurchased $414 million of Class A shares during the quarter at an average price of about $94.

Costs rose alongside the expansion. Operating expenses increased 33% to $734 million because of marketing, growth spending, restructuring charges and costs linked to Rothera and other new businesses. Adjusted EBITDA, a non-GAAP measure, increased 35% to $741 million.

HOOD shares slipped as investors weighed the revenue mix

Robinhood shares closed Wednesday at $89.84, down about 3.4% before the earnings release. Reuters reported that the stock fell another 0.8% in extended trading, even after adjusted earnings exceeded analysts’ average estimate.

Investors will now watch whether event-contract activity remains durable and whether crypto trading recovers. Robinhood lowered its 2026 adjusted operating expense and share-based compensation outlook to between $2.675 billion and $2.775 billion, from a previous range of $2.7 billion to $2.825 billion. However, that forecast excludes some credit-loss, acquisition, restructuring and regulatory costs.

Regulation remains a central risk for the company’s fastest-growing product. Robinhood warned that enforcement actions or changes in federal and state law could prevent it from offering some event contracts. Meanwhile, its UK crypto launch and future Singapore brokerage services remain forward-looking plans without confirmed start dates.