[Update 08:55 UTC, July 30: Updates with additional reporting and context.]

Online brokerage Robinhood reported record second-quarter revenue and earnings, even as cryptocurrency transaction revenue fell 38% from a year earlier.

In its earnings report released Wednesday, the company said crypto transaction revenue declined to $100 million from about $160 million a year earlier. Total revenue rose 32% year over year to $1.31 billion, while net income increased 48% to $573 million. Transaction-based revenue climbed 44% to $776 million.

Robinhood said it processed $40 billion in crypto notional trading volume during the quarter. Of that total, $18 billion came from the Robinhood app, down 35% from a year earlier, while $22 billion came from Bitstamp, the crypto exchange it acquired in June 2025. The Bitstamp contribution reflects Robinhood's push to serve institutional and international crypto clients, markets the company had limited exposure to through its retail-focused app alone.

The price of Robinhood shares was down 3.15% on Wednesday before the company's earnings release, according to Yahoo Finance data.

Robinhood expands crypto ecosystem

Despite the decline in crypto trading revenue, Robinhood continued to expand its digital asset business during the quarter. The company completed its acquisition of Canadian crypto platform WonderFi as it broadened its crypto offerings beyond trading.

After the quarter ended, Robinhood launched the public mainnet of Robinhood Chain, introduced tokenized US stocks to eligible users in more than 120 countries, and debuted its first decentralized lending product, Robinhood Earn. The moves place Robinhood among a growing set of traditional financial firms — including BlackRock, Franklin Templeton and other asset managers — pursuing tokenization of real-world assets on blockchain infrastructure.

Related: Bernstein raises Robinhood price target, cites tokenization and prediction markets

Data from DefiLlama shows Robinhood's new Ethereum layer-2 network had $348 million in total value locked on Thursday, more than $500 million in stablecoins and over $1 billion in bridged assets.

Platform growth offsets crypto slowdown

Cryptocurrency was the only major transaction category to decline during the quarter.

Robinhood said growth in event contracts, options and equities more than offset the weakness. Event contract revenue surged more than tenfold to $156 million, options revenue rose 29% to $342 million, and equities revenue jumped 95% to $129 million. The surge in event contract revenue mirrors broader growth in prediction markets, where platforms such as Polymarket and Kalshi have reported rising user activity and trading volume.

The company also reported record net deposits of $21.7 billion during the quarter. Total platform assets rose 32% year over year to $369 billion, while funded customers increased 7% to 28.4 million.

Robinhood lowered and narrowed its 2026 outlook for adjusted operating expenses and share-based compensation to between $2.675 billion and $2.775 billion, from $2.7 billion to $2.825 billion previously. Adjusted EBITDA rose 35% to $741 million, while total operating expenses increased 33% to $734 million.

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