Robinhood Q2 earnings hit record as event contracts jump
Robinhood reported $1.31 billion in Q2 revenue, with prediction-market contracts growing even as crypto trading revenue fell.
By Dev Ramirez · Crypto Correspondent
· 3 min read
Robinhood Q2 earnings showed the trading app just had its strongest revenue quarter yet, and the mix of business is changing in a way retail investors should watch. Robinhood reported $1.31 billion in second-quarter revenue, up 32% from a year earlier and above the $1.26 billion Wall Street estimate cited in reports.
The company’s results, released Wednesday, showed net income of $573 million, or $0.62 per share. A year earlier, Robinhood earned $386 million, or $0.42 per share, according to the company.
For investors, the notable shift is where the growth came from. Crypto trading revenue dropped 38% year over year to $100 million, while event contracts brought in $156 million after rising more than tenfold, according to Robinhood’s reported figures.
What drove Robinhood's Q2 earnings?
Transaction-based revenue climbed 44% to $776 million, but Robinhood’s newer products did more of the lifting. Event contracts, also known as prediction-market contracts, let users trade on the outcome of real-world events, such as Federal Reserve rate decisions or sports results.
That category became Robinhood’s fastest-growing revenue line in the quarter, according to the company’s figures. The jump matters because Robinhood has long been closely tied to retail trading activity in stocks, options and crypto. A bigger event-contract business gives the company another way to generate transaction revenue when one market cools.
Robinhood also reported higher activity and customer balances across the platform. Platform assets increased to $369 billion from $307 billion, while quarterly net deposits rose to $21.7 billion from $17.7 billion, according to the company.
Robinhood Gold, the company’s subscription offering, also grew. Subscribers reached 4.8 million, up from 4.3 million, the company said.
Crypto revenue fell, but crypto plans expanded
Robinhood’s crypto business had a weaker revenue quarter compared with the same period last year. The company reported crypto revenue of $100 million, down 38% year over year, and Decrypt reported that crypto trading revenue and volumes declined from the prior quarter.
At the same time, Robinhood continued to build out crypto-linked products. The company said it expanded Robinhood Chain with tokenized stocks, decentralized lending and plans for additional international crypto offerings.
Robinhood Chain is the company’s blockchain effort. Tokenized stocks are blockchain-based representations tied to stock exposure, while decentralized lending generally refers to borrowing and lending through crypto protocols rather than a traditional bank or broker.
CEO Vlad Tenev said on X that Robinhood reached all-time highs in trading volumes across equities, options and prediction markets. The company’s results point to a broader push beyond its original stock-trading app identity, with prediction markets and blockchain products becoming more visible parts of the business.
The quarter does not erase the volatility in crypto trading revenue, which remains sensitive to market activity. It does show that Robinhood is trying to spread revenue across more products while keeping retail traders inside its platform.
This story draws on original reporting from Decrypt.
