NEW YORK — Robinhood Markets Inc. reported second-quarter revenue of $620 million, topping analyst estimates of $595 million and marking the company's highest quarterly revenue since the second quarter of 2024.
Transaction-based income drove the beat, rising 40 percent year-over-year to $340 million as elevated volatility pushed trading volumes higher across equity and derivatives markets. Options trading led the way, with transaction revenue from options climbing 55 percent compared to the prior year. Equities trading revenue rose 28 percent.
Crypto trading contributed $60 million to transaction revenue, up 35 percent from the first quarter, reflecting renewed retail interest in digital assets.
Net interest income reached $280 million, boosted by higher prevailing interest rates tied to the Federal Reserve's sustained hawkish stance on monetary policy.
Monthly active users grew to 18.5 million from 17.9 million in the prior quarter. Assets under custody reached $125 billion, up 10 percent quarter-over-quarter. Average revenue per user climbed to $125 from $110 in Q1, reflecting stronger monetization across the platform.
Argus Research raised its price target for Robinhood to $35, citing the company's user monetization and leverage to market activity. Analyst John Davies said strong options performance was a key catalyst.
Regulatory scrutiny remains a persistent overhang. Robinhood continues to face discussions around payment for order flow, a critical component of its revenue model.
Management guided third-quarter revenue of $630 million to $650 million, assuming continued market engagement and product expansion. The company also announced plans to add retirement account features and expand internationally in select markets over the next 12 months.
Robinhood shares fell 2.5 percent on the day, underperforming a broader market decline in which the Nasdaq dropped 1.7 percent and the S&P 500 fell 1.5 percent.
