Robinhood delivered better-than-expected second-quarter results, continuing its strong momentum as the top-performing large-cap U.S. tech stock of the year. The company reported earnings per share of $0.42, beating analyst expectations of $0.31. Revenue soared 45% year-over-year to $989 million, significantly above the $908 million forecasted. Net income surged 105% to $386 million compared to the same period last year.
The platform saw a rise in funded customer accounts, adding 2.3 million to reach a total of 26.5 million, exceeding estimates. Investment accounts grew 10% to 27.4 million. Total assets on the platform nearly doubled to $279 billion, supported by strong net deposits, asset acquisitions, and favorable market conditions in equities and cryptocurrencies.
Robinhood is positioning itself as a full-scale wealth management platform, moving beyond its retail trading roots. Through competitive deposit matches, it has attracted clients from traditional firms like Fidelity and Schwab. The recent acquisition of TradePMR has further strengthened its asset base.
Transaction-based revenue reached $539 million, beating expectations, with options trading leading at $265 million. However, cryptocurrency revenue slightly missed at $160 million, and equities came in at $66 million. Net interest revenue came in strong at $357 million, surpassing the $306 million estimate. Adjusted EBITDA jumped 82% to $549 million, far exceeding projections.
Average revenue per user climbed 34% to $151. Robinhood Gold subscribers increased 76% to 3.5 million, reflecting growing demand for premium features like enhanced research tools and higher cash sweep rates. Retirement accounts now hold over $20 billion, with 1.5 million customers participating, indicating momentum in long-term investing services.
The company’s new prediction markets have gained traction, with nearly $1 billion traded last quarter. Engagement is highest in sports betting, with plans to expand into broader cultural and news-driven contracts. CEO Vlad Tenev also previewed Robinhood Banking, launching this fall, aimed at consolidating more customer assets on the platform.
Despite these wins, shares dipped slightly due to forecasted 2025 costs tied to the Bitstamp acquisition, which are expected to reach $65 million. Full-year adjusted operating expenses could hit $2.25 billion, excluding future costs from the pending WonderFi deal.
Robinhood also faced controversy over synthetic stock tokens for companies like OpenAI, which disapproved of the offering. Robinhood defended the initiative as a step toward democratizing pre-IPO access.
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