Robinhood Q2 Earnings Beat Estimates as HOOD Stock Slips Despite Record Revenue

Robinhood Markets (NASDAQ: HOOD) delivered stronger-than-expected second-quarter earnings, but its shares fell around 4% in after-hours trading after closing 3.1% lower during Wednesday's regular session. Despite posting record revenue and exceeding Wall Street forecasts, investors appeared cautious as cryptocurrency trading activity slowed.

The online brokerage reported adjusted earnings per share of $0.62, comfortably beating analysts' expectations of $0.43. Revenue climbed 32% year over year to a record $1.31 billion, slightly above the consensus estimate of $1.29 billion, reflecting continued growth across its expanding financial services platform.

Although crypto trading remained a weaker spot, Robinhood offset the decline with strong performance in other areas. Crypto revenue dropped 38% from $160 million a year earlier to $100 million, while transaction revenue benefited from higher trading volumes in options, equities, and prediction markets.

CEO and Chairman Vlad Tenev highlighted the company's rapid pace of innovation, pointing to initiatives such as Robinhood Chain, Robinhood Ventures, and Trump Accounts as part of its long-term vision of expanding financial ownership.

A major highlight of the quarter was the launch of Robinhood Chain, the company's blockchain network designed to support tokenized U.S. stocks for eligible European customers. The platform aims to bring traditional financial assets onto blockchain infrastructure, with tokenized shares of companies including GameStop, Nvidia, and SpaceXbecoming some of the network's most actively traded real-world assets. While stablecoins and memecoins still account for much of the blockchain's activity, trading in tokenized equities has gained momentum in recent weeks.

Robinhood also introduced Agentic Trading, a suite of AI-powered investing tools that enables users to connect third-party AI assistants to brokerage accounts. The system allows automated market monitoring and trade execution based on user-defined instructions while maintaining safeguards such as spending limits, separate trading accounts, and manual approval features.

The earnings report also offers investors an early indication of what to expect from Coinbase (NASDAQ: COIN)when it releases second-quarter results. Since both companies are closely tied to retail trading activity and cryptocurrency market sentiment, Robinhood's transaction trends may provide insight into Coinbase's upcoming performance. Investors will be watching closely to see whether improving crypto prices and trading volumes translated into stronger transaction revenue for Coinbase.

Robinhood will discuss its quarterly results during an investor conference call scheduled for 5:00 p.m. ET.