Robinhood reported record second-quarter revenue of $1.31 billion, up 32% year over year, surpassing analyst expectations of approximately $1.28 billion. Diluted earnings reached $0.62 per share, well above estimates near $0.44. Net income climbed 48% to $573 million, while adjusted EBITDA rose 35% to $741 million.

Despite the stronger-than-expected results, HOOD stock traded near $89.40, down 3.62% during the latest session, falling below the $90 mark. The decline reflected investor caution surrounding weaker crypto trading revenue and questions about earnings quality. The pullback also came after shares had surged in 2025, leaving the stock sensitive to any softness in headline growth metrics.

Platform Growth and Customer Metrics

Robinhood recorded $21.7 billion in net deposits during the quarter. Total platform assets climbed 32% year over year to $369 billion, and funded customers rose to 28.4 million. Average revenue per user increased 24% to $187.

Robinhood Gold subscribers reached a record 4.84 million, up 39% from a year earlier. Gold adoption reached 17% of funded customers, with annualized subscription revenue rising to $216 million. The subscription tier, which offers features such as higher IRA matching, lower borrowing rates, and premium research, has become a recurring revenue pillar as the company diversifies beyond transaction-based income.

Transaction Revenue: Options and Prediction Markets Lead

Transaction-based revenue rose 44% year over year to $776 million. Options remained the largest contributor, generating $342 million. Prediction markets generated $156 million in revenue, topping both equity and crypto revenue during the quarter. Equity revenue reached $129 million.

The prediction markets figure underscores how event contracts—letting users bet on outcomes like elections and economic data—have emerged as a material revenue stream for retail trading platforms, a category that gained broad traction heading into 2024's U.S. election cycle.

Crypto trading revenue fell to $100 million, a 38% decline from a year earlier. Robinhood app crypto volume dropped 35% to $18 billion, while Bitstamp contributed an additional $22 billion in trading volume. Robinhood acquired the Europe-based crypto exchange Bitstamp in 2024 to accelerate its global digital asset expansion, and the contributed volume illustrates how international channels are partially offsetting softer U.S. crypto activity.

The weaker crypto results came as Robinhood continued expanding other business lines. Event contracts, options, Gold subscriptions, and growth in platform assets helped offset lower digital asset activity.

Robinhood stated, "Whether it's the Robinhood Chain, Robinhood Ventures, or Trump Accounts, our product velocity is focused on one goal: making everyone an owner." The company added, "We delivered record revenues and drove new highs across equity, option, and event contract volumes, as we continue to win market share."

Expenses, Guidance, and Share Buybacks

Operating expenses increased 33% to $734 million, which Robinhood attributed to marketing, product investment, restructuring costs, and spending on newer businesses.

The company tightened its expected 2026 adjusted operating expense and stock-based compensation range to $2.675 billion to $2.775 billion, narrowing from the prior range of $2.7 billion to $2.825 billion.

Quarterly profit included a $129 million gain tied primarily to the deconsolidation of Robinhood Ventures Fund I, adding approximately $0.14 to diluted earnings per share. Without this benefit, underlying earnings still exceeded estimates, though the adjustment drew investor scrutiny.

Robinhood repurchased $414 million of its shares during the quarter at an average price near $94. Heading into the next quarter, investors are monitoring crypto trading trends, prediction market growth, Gold subscription momentum, and expense management.