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Robinhood exceeds earnings expectations

Robinhood reports $989 million in revenue for Q2, despite a drop in crypto transactions.

July 30, 2025 at 10:21 PM

Robinhood ‘hulk smashes’ earnings as push to diversify revenue pays off

Robinhood sees significant revenue growth as it diversifies its income sources.

Robinhood reports strong earnings despite crypto declines

Robinhood has impressed Wall Street with its recent earnings report for the second quarter. The online brokerage revealed a 7% increase in revenue quarter-over-quarter, reaching $989 million, surpassing analysts' expectations of $915 million. Earnings per share also outperformed forecasts, coming in at 42 cents compared to the anticipated 31 cents. This success comes even as Robinhood's crypto transaction revenue has dropped 36% to $160 million from the previous quarter, highlighting the company's efforts to strengthen its revenue streams beyond just cryptocurrency trading.

Key Takeaways

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Robinhood's revenue rose 7% to $989 million, exceeding expectations.

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Earnings per share reached 42 cents, outperforming the forecast.

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Crypto revenue fell sharply by 36%, affecting overall performance.

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30% of revenue now comes from interest-generating activities.

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The subscription service Robinhood Gold contributes nearly 10% of revenue.

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CEO Vlad Tenev emphasizes the importance of diversification for future stability.

"In 2021, when we went public, it felt to me like we were much more fragile than today."

Vlad Tenev highlights the company's growth and stability compared to its public debut.

"If you look at things that we expect to deliver in the short term, medium term and long term, it’s pretty packed."

Tenev expresses confidence in Robinhood's future amid diversification efforts.

The substantial growth in revenue reflects Robinhood's strategic pivot away from solely relying on the volatile crypto market. CEO Vlad Tenev's remarks signal confidence in the company's ability to adapt to changing market conditions. By diversifying its product offerings and expanding into banking services, Robinhood aims to stabilize its income. The drop in dependence on retail trading amidst a falling crypto market marks a significant evolution for the company, demonstrating both resilience and long-term planning.

Highlights

Robinhood is gaining ground even as crypto revenue falls more than 30%.
A strategic pivot is key to Robinhood's impressive quarterly earnings.
Almost 30% of Robinhood's revenue now comes from interest-generating activities.
The future looks packed with growth opportunities for Robinhood.