Key Takeaways
- Robinhood posted $1.31B in Q2 revenue on July 29, driven by strong trading volume.
- Event contracts on Robinhood surged over 10x to $156M, signaling a retail shift in trading trends.
- CEO Vlad Tenev aims to expand Robinhood using Trump Accounts and 13 business lines topping $100M revenue.
Trading Revenue and Product Growth
Financial technology platform Robinhood Markets reported record second-quarter net revenue of $1.31 billion on July 29, up 32% from a year earlier, driven by robust trading activity and rapid expansion in its newer financial services.
Net income rose 48% to $573 million, or 62 cents per diluted share. Results for the quarter ended June 30 included a $129 million gain, or 14 cents per share, primarily from deconsolidating Robinhood Ventures Fund I.
Transaction-based revenues jumped 44% year-over-year to $776 million. Growth was led by options trading, which rose 29% to $342 million, and equity trading, which surged 95% to $129 million. Revenue from event contracts, the company’s prediction market offering, expanded more than tenfold to $156 million. Conversely, cryptocurrency trading revenue declined 38% to $100 million amid lower crypto valuations.
“Whether it’s the Robinhood Chain, Robinhood Ventures, or Trump Accounts, our product velocity is focused on one goal: making everyone an owner,” said Vlad Tenev, chief executive officer of Robinhood. “Broad ownership is essential to a free, stable, and prosperous society.”
Net interest revenues grew 9% to $389 million, supported by growth in interest-earning assets despite lower short-term rates. Other revenues surged 54% to $143 million, propelled by contributions from Robinhood Gold subscriptions and service fees from Trump Accounts.
During the quarter, net deposits reached a record $21.7 billion, representing an annualized growth rate of 28% relative to total platform assets, which expanded 32% year-over-year to $369 billion. Average revenue per user jumped 24% year-over-year to $187.
Total operating expenses grew 33% to $734 million, driven by marketing investments, costs tied to new product lines, and restructuring charges associated with a workforce reduction executed in June 2026. Adjusted operating expenses and share-based compensation rose 23% to $641 million, coming in below internal projections. Adjusted EBITDA rose 35% to $741 million.
“The business is firing on all cylinders,” Chief Financial Officer Shiv Verma said. “We delivered record revenues and drove new highs across equity, option, and event contract volumes, as we continue to win market share.”
Robinhood ended the second quarter with $5.4 billion in cash and cash equivalents, up from $4.2 billion a year prior, reinforced by net proceeds from a $2.2 billion convertible notes offering in June. During the quarter, the company repurchased $414 million of Class A common stock, bringing cumulative buybacks under its share repurchase initiative to $1.3 billion since late 2024.
