Robinhood shares fall despite record revenue on crypto slump
Robinhood posted record second-quarter revenue and beat profit estimates, but a 38% drop in crypto revenue drove shares lower and sets a cautious tone for Coinbase's upcoming earnings report.
Robinhood reported record second-quarter revenue of $1.31 billion, beating Wall Street estimates, but its shares fell 4% in after-hours trading as a sharp decline in crypto trading revenue overshadowed the strong overall results.
The online brokerage posted adjusted earnings of $0.62 per share, well ahead of the $0.43 consensus forecast. Revenue grew 32% year over year, narrowly topping the $1.29 billion estimate. This growth was primarily driven by surging activity in options, equities and prediction markets, which more than compensated for weakness in digital assets.
Crypto revenue fell to $100 million, down 38% from $160 million a year earlier. This cooling in digital asset trading was enough to spook investors, extending the stock's losses and adding to a 3.1% decline during the regular Wednesday session.
A bellwether for Coinbase
The crypto figures carry outsized weight for the broader digital asset market. Because Robinhood and Coinbase share heavy exposure to retail trading activity and crypto market sentiment, Robinhood's transaction trends frequently serve as an early indicator for its larger rival. Analysts are now watching closely to see if higher crypto prices and trading volumes during the quarter actually translated into stronger transaction revenue when Coinbase reports its own second-quarter results on Thursday.
Diversifying beyond crypto
Beyond the quarterly trading fluctuations, Robinhood is pushing aggressively to broaden its product lineup. The company launched Robinhood Chain, a blockchain network designed to support tokenized U.S. stocks for eligible European customers. While memecoins and stablecoins still account for much of the chain's activity, it has already generated hundreds of millions of dollars in daily decentralized exchange volume.
Tokenized equities like GameStop, Nvidia and SpaceX are steadily expanding among its most actively traded real-world assets. The firm also introduced Agentic Trading, artificial intelligence tools that let users connect third-party assistants to their accounts to automate investing while keeping spending limits and manual approvals in place. "Whether it's the Robinhood Chain, Robinhood Ventures, or Trump Accounts, our product velocity is focused on one goal: making everyone an owner," Vlad Tenev, Chairman and CEO, said in a statement.
