Robinhood Markets reported second-quarter results Wednesday that topped Wall Street expectations, as record trading volumes in equities, options, and prediction markets drove total net revenues up 32% year-over-year to $1.31 billion.
Event contracts revenue rose more than 10x year-over-year to $156 million, helping drive a 32% gain in total net revenues
Robinhood Markets reported second-quarter results Wednesday that topped Wall Street expectations, as record trading volumes in equities, options, and prediction markets drove total net revenues up 32% year-over-year to $1.31 billion.
Robinhood's adjusted earnings of 48 cents per share cleared the average analyst estimate of 44 cents, according to Reuters. Net income rose 48% year-over-year to $573 million, and diluted earnings per share reached $0.62, the company said.
Prediction markets were a standout contributor to the quarter. Event contracts revenue climbed more than 10x from a year earlier to $156 million, while the number of event contracts traded rose more than 10x to a record 13.6 billion. Overall transaction-based revenues reached $776 million, a 44% increase from the prior year, with options contributing $342 million (up 29%) and equities adding $129 million (up 95%).
"The business is firing on all cylinders," Chief Financial Officer Shiv Verma said in a statement. "We delivered record revenues and drove new highs across equity, option, and event contract volumes, as we continue to win market share."
Cryptocurrency was a weak spot. Robinhood's crypto trading brought in $100 million for the quarter, a 38% decline compared with the same period last year, the company said, as activity in digital assets cooled.
Other revenue lines contributed to the record quarter. Net interest revenues grew 9% year-over-year to $389 million, while other revenues — which include Trump Account service fees and Robinhood Gold subscription income — rose 54% to $143 million.
Robinhood also reported several customer and platform milestones. Funded customers grew 7% year-over-year to 28.4 million, Robinhood Gold subscribers rose 39% to a record 4.8 million, and net deposits reached $21.7 billion. Total platform assets increased 32% year-over-year to $369 billion.
The company said Robinhood now has 13 business lines that have reached $100 million or more in annualized revenues, with Robinhood Legend and the credit card business joining that group during the quarter.
Robinhood lowered its full-year outlook for adjusted operating expenses and share-based compensation to a range of $2.675 billion to $2.775 billion, tightening from a prior range of $2.7 billion to $2.825 billion, reflecting what it described as efficiencies captured during the period.
Robinhood stock fell 0.8% in extended trading following the results.
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