Robinhood posted its second-quarter results on Wednesday after the close of the market, reporting a 65% year-on-year increase in transaction-based revenues, reaching $539 million, fuelled by strong growth in options, cryptocurrency and equity trading activity.
Robinhood Transaction-Based Revenues Jump 65% in Q2
The jump in transaction-based income contributed to a 45% rise in total net revenues, which came in at $989 million.
Net income more than doubled to $386 million, while diluted earnings per share rose 100% to $0.42.
Options trading is said to have led the way with revenues of $265 million, up 46%, followed by cryptocurrencies at $160 million, up 98%. Equities trading revenue also rose 65% to $66 million.
“We delivered strong business results in Q2 driven by relentless product velocity,” said CEO Vlad Tenev, highlighting the launch of Robinhood’s tokenisation initiative as a major innovation.
Robinhood said customer engagement remained strong, with net deposits of $13.8 billion and 2.3 million new funded customers, bringing the total to 26.5 million.
Robinhood Gold subscribers reached a record 3.5 million, up 76% year-on-year.
The company closed its acquisition of cryptocurrency exchange Bitstamp in June and entered into an agreement to buy Canadian digital asset firm WonderFi.
Platform assets nearly doubled to $279 billion, driven by increased deposits and higher valuations of cryptocurrencies and equities.
Chief Financial Officer Jason Warnick said the company was “off to a great start” in the third quarter, with around $6 billion in net deposits in July and strong trading volumes across asset classes.
