Robinhood Stock Rallies After Earnings Beat and Crypto Growth Surprise

Robinhood Markets Inc. (HOOD) delivered an upbeat second-quarter earnings.

The report sent its stock soaring nearly 6% in after-hours trading Wednesday, as the online brokerage beat Wall Street expectations on both earnings and revenue while raising its full-year guidance.

The company posted net income of $157 million, or 18 cents per share—well ahead of the 2 cents per share forecast by analysts. Revenue for the quarter reached $645 million, exceeding consensus estimates of $628 million and marking a 22% year-over-year increase.

The performance was underpinned by a significant jump in cryptocurrency-related revenue, rising 9% sequentially to $151 million, and a record 23.2 million monthly active users, up 23% from the prior year.

Crypto and Margin Businesses Fuel Gains
Robinhood’s crypto business continues to be a key growth engine. The company benefited from increased trading activity and wider adoption of its crypto wallet, with digital asset revenue now accounting for nearly one-quarter of total revenues.

Net interest revenue—which includes earnings from margin lending and uninvested customer cash—grew to $251 million, up from $251 million in the first quarter. Margin balances also rose to $4.9 billion, highlighting stronger investor engagement despite broader market volatility.

While transaction-based revenues from equities and options saw slight declines, overall brokerage activity remained solid. The company reported $119 million in equity revenue (down 6% sequentially) and $98 million in options revenue (down 2%).

 
Expenses Tamed, Buybacks Signal Maturing Strategy
Operating expenses came in at $592 million, flat from the first quarter, reflecting tighter cost controls. Robinhood continues to show greater financial discipline even as it expands its product suite.

The company also completed $1 billion of its $1 billion share repurchase authorization announced in February, primarily focused on buying back shares from co-founder and CEO Vlad Tenev’s former partner, Index Ventures. Executives noted an additional $200 million repurchase program targeting open-market shares, with nearly half of it already executed by the end of Q2.

Cash on hand remains strong at $6.4 billion, giving Robinhood flexibility for future growth initiatives or capital returns.

 
Outlook Raised, User Growth Breaks Records
Robinhood raised its full-year revenue guidance to between $2.53 billion and $2.58 billion, up from prior estimates of $2.48 billion to $2.55 billion. The move reflects management’s growing confidence in user engagement, especially as active accounts and funded accounts hit new highs.

The brokerage also reported a record $130.2 billion in assets under custody and 24.3 million funded accounts—both metrics representing year-over-year gains of more than 40%.

Despite regulatory uncertainty in the crypto space, Robinhood’s diversified revenue streams and improving profitability have started to shift the market narrative around the company.

Conclusion
Robinhood’s Q2 results suggest a company entering a new phase of maturity. Surging crypto activity, expanding net interest income, and disciplined capital management are helping the fintech platform regain investor trust. With user growth at record levels and an upbeat outlook for the remainder of the year, Robinhood appears poised to reassert itself as a key player in both retail investing and digital assets.

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