Robinhood slides 4% despite earnings beat as crypto revenue cools
Reported by CoinDesk · AI-assisted summary by ChikoCorp AI News Desk
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Robinhood reported second-quarter adjusted earnings per share of $0.62, surpassing analysts’ estimate of $0.43, and posted record quarterly revenue of $1.31 billion, slightly above the consensus expectation of $1.29 billion. The company’s revenue increased 32% year over year, driven by stronger activity in options, equities, and prediction markets. Despite these positive financial results, Robinhood’s shares declined by about 4% in after-hours trading, adding to a 3.1% drop during regular trading.
A notable trend in the quarterly report was a significant decline in crypto-related revenue, which fell 38% from $160 million a year earlier to $100 million. This cooling in crypto revenue was offset by increased transaction volumes in other financial products. Robinhood’s CEO and Chairman Vlad Tenev emphasized the company’s product expansion strategy aimed at broadening ownership, highlighting initiatives like Robinhood Chain and Agentic Trading AI tools.
Robinhood Chain, launched during the quarter, is a blockchain network that supports tokenized U.S. stocks for eligible European customers. Since its launch, it has seen rapid growth with hundreds of millions of dollars in daily decentralized exchange volume. Tokenized equities such as GameStop, Nvidia, and SpaceX are among the actively traded assets, although memecoins and stablecoins continue to dominate overall activity. Additionally, the company introduced Agentic Trading, a new suite of AI-powered tools enabling users to automate investing while maintaining control with features like spending limits and manual trade approvals.
The report also positions Robinhood’s results as a potential indicator for Coinbase’s upcoming earnings release. Both companies share exposure to retail trading activity and crypto market sentiment, so Robinhood’s trends in transaction revenue may provide early insights into Coinbase’s performance for the quarter. An investor call concerning the quarterly results was scheduled for 5 p.m. Eastern Time.