Robinhood (HOOD) reported stronger-than-expected Q2 results on Wednesday, with earnings of $0.42 per share on $989 million in revenue – surpassing Wall Street forecasts of $0.31 EPS and $908 million revenue. Revenue surged 45% year-over-year, while net income jumped 105% to $386 million. The platform added 2.3 million new funded accounts, bringing total accounts to 26.5 million, with assets under custody nearly doubling YoY to $279 billion.
Crypto trading revenue soared 98% YoY to $160 million, though slightly below the $168 million consensus estimate. Crypto trading volume reached $28.3 billion for the quarter. Transaction-based revenue hit $539 million overall, with options leading at $265 million. Robinhood's expansion strategy included acquiring Bitstamp for $200 million and Canadian platform WonderFi for $179 million, broadening its regulated crypto footprint across North America.
CEO Vlad Tenev highlighted tokenization as "the biggest innovation our industry has seen in the past decade," referencing Robinhood's European launch of tokenized stocks/ETFs and synthetic tokens for private companies like OpenAI and SpaceX. Despite controversy over unauthorized OpenAI tokens, Robinhood defended the product as regulatory-compliant. Shares have rallied 177% YTD, pushing its market cap near $100 billion – rivaling Coinbase's valuation.