Skip to content
Menu

Robinhood Beats Revenue Estimates, Reports Q2 Profitability

Robinhood's stock and crypto trading platform sees 53% year-over-year revenue growth 

Stock and crypto trading platform company Robinhood Markets Inc reported second-quarter financial results after the market closed on Wednesday.

What Happened: Robinhood reported second-quarter revenue of $486 million, which was up 53% year-over-year and up 10% quarter-over-quarter. The revenue total beat a Street estimate of $475 million. 

The company reported transaction revenue of $193 million, which was down 7% quarter-over-quarter. Cryptocurrency related revenue was down 18% quarter-over-quarter to $31 million. Equity related revenue was $25 million and down 7% year-over-year. Net interest revenue was up 13% year-over-year to $234 million.

Robinhood reported second-quarter earnings per share of 3 cents, which beat a Street estimate of a loss of 2 cents per share.

The company reported 23.2 million funded accounts, which was up by around 70,000 sequentially.

The Robinhood Markets, Inc. logo is displayed on a smartphone screen in this photo illustration. Robinhood reported second-quarter revenue of $486 million, which was up 53% year-over-year and up 10% quarter-over-quarter. The revenue total beat a Street estimate of $475 million,  RAFAEL HENRIQUE/SOPA IMAGES/LIGHTROCKET/GETTY IMAGES

Monthly active users were 10.8 million for the second quarter, down by around 1 million accounts.

The company ended the quarter with $89 billion assets under custody, which was down 13% quarter-over-quarter.

Robinhood saw average revenue per user of $84 in the second quarter, up from $77 in the first quarter.

The company ended the quarter with $5.8 billion in cash.

“In Q2, we reached a significant milestone by achieving GAAP profitability for the first time as a public company,” Robinhood CEO Vlad Tenev said.

“Guided by our bold product roadmap we’re continuing to innovate for our customers, grow assets, gain market share, and change the industry for the better.”

The company’s profitable turn was highlighted by Chief Financial Officer Jason Warnick.

“Reaching GAAP profitability is a testament to the work our team has done to transform the business and better position Robinhood to drive shareholder value,” Warnick said.

“With five consecutive quarters of revenue and Adjusted EBITDA growth, we’re continuing to drive efficiency across our operations while investing in customer experience. Looking ahead, we remain focused on delivering for customers and growing our business.”

What’s Next: The company said its full-year expense outlook improved after the second -quarter results.

The company now sees full-year expenses in a range of $2.33 billion to $2.41 billion.

Highlights from the company for the future include strong adoption of its IRA program, with around $1 billion in assets.

The Robinhood Markets, Inc. logo is displayed on a smartphone screen in this photo illustration. Robinhood reported second-quarter revenue of $486 million, which was up 53% year-over-year and up 10% quarter-over-quarter. The revenue total beat a Street estimate of $475 million,  RAFAEL HENRIQUE/SOPA IMAGES/LIGHTROCKET/GETTY IMAGES

The company also said its Robinhood Gold program with a 4.9% yield has seen balances more than double since the start of the year, for a total of $11 billion.

Robinhood launched its 24-hour trading market in July for select stocks and ETFs.

The company said it is working to complete its purchase of 55 million shares owned by Emergent Fidelity Technologies.

HOOD Price Action: Robinhood shares traded 4.35% lower to $11.90 in Wednesday’s after-hours session. 

Produced in association with Benzinga

“What’s the latest with Florida Man?”

Get news, handpicked just for you, in your box.

Check out our free email newsletters

Recommended from our partners