Robinhood beat Wall Avenue expectations for the second quarter Wednesday.
Right here is how Robinhood’s outcomes in comparison with Wall Avenue estimates, based on analysts surveyed by LSEG:
- Earnings per share: 42 cents vs. 31 cents anticipated
- Income: $989 million vs. $908 million anticipated
Income jumped 45% year-over-year to $989 million, whereas web earnings greater than doubled to $386 million, up 105% from the identical quarter final yr.
The variety of funded prospects climbed by 2.3 million to 26.5 million, topping the StreetAccount estimate of 26.1 million. Funding accounts additionally grew 10% year-over-year to 27.4 million.
Complete platform belongings almost doubled, rising 99% from a yr earlier to $279 billion, pushed by sturdy web deposits, acquired belongings, and better fairness and cryptocurrency valuations, based on the discharge.
Complete working bills elevated 12% to $550 million. On a non-GAAP foundation, adjusted working bills and share-based compensation rose 6% to $522 million, reflecting prices tied to the Bitstamp acquisition.
Transaction-based income got here in at $539 million, forward of StreetAccount’s $517 million estimate. Choices buying and selling contributed $265 million, beating the $250 million estimate.
Cryptocurrency buying and selling got here in gentle of estimates at $160 million versus $168 million anticipated, and equities additionally missed StreetAccount’s estimate at $66 million versus $69 million anticipated.
Internet curiosity income was $357 million, beating expectations of $306 million. Adjusted EBITDA jumped 82% to $549 million, properly above estimates of $448 million.
Common income per consumer rose 34% year-over-year to $151, topping the $142 consensus.
Robinhood Gold subscribers, which offer prospects with greater money sweep charges, bigger instantaneous deposits and enhanced analysis instruments, elevated by 1.5 million, up 76% to three.5 million customers.
“Q3 is off to an excellent begin in July, as prospects accelerated their web deposits to round $6 billion and leaned in with sturdy buying and selling throughout classes,” mentioned Robinhood CFO Jason Warnick in a launch.
The inventory is up greater than 180% thus far this yr after a 192% acquire in 2024 — a greater than 400% rally over the previous 12 months that outpaces each different large-cap U.S. inventory and has pushed its market cap inside putting distance of $100 billion.
Regardless of its meteoric rise, Robinhood was excluded from the S&P 500 last month — a transfer that shocked some buyers, particularly as rival fintech Block was added.
Buyers have been watching intently for updates on Robinhood’s growth into crypto infrastructure and tokenized finance — significantly after its launch of synthetic stock tokens for OpenAI and SpaceX. The belongings, which commerce in Europe by way of Robinhood’s crypto platform, give customers oblique publicity by way of particular goal autos — however drew quick backlash.
OpenAI publicly disavowed the providing, warning customers that the tokens are not OpenAI equity and have been issued with out the corporate’s approval. Robinhood defended the rollout, calling it a approach to develop entry to pre-IPO markets, and mentioned it constructed this system to resist regulatory scrutiny.
Robinhood will host an earnings name with analysts at 5 P.M. ET.
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