Robinhood Q2 Revenue Rises 31.8% on Crypto Surge

Robinhood Markets Inc. (HOOD) is set to report its second-quarter financial results after market close on Wednesday, with analysts and investors closely watching for signs of sustained growth amid a broader crypto rally. The trading platform has seen consistent revenue outperformance in recent quarters, driven by surging cryptocurrency trading volumes and expanding customer accounts. Analysts predict the company will report Q2 revenue of $899 million, a 31.8% increase from $682 million in the same period last year [1]. This follows a pattern of outperforming expectations, with Robinhood exceeding revenue forecasts in two consecutive quarters and seven of the last 10 quarters overall.

The company’s crypto business has been a key growth driver. In May, Robinhood reported crypto trading volumes of $11.7 billion, up from $8.6 billion in April and significantly higher than $7.1 billion in May 2023. With Bitcoin and Ethereum reaching all-time highs during the quarter, analysts anticipate robust crypto-related revenue, building on a 100% year-over-year increase in Q1 crypto revenue. The recent acquisition of Bitstamp, finalized on June 2, could further boost results, as the platform’s 500,000 funded accounts are integrated for the first time.

Robinhood’s customer base continues to expand. Funded accounts rose to 25.9 million by the end of May, up from 25.8 million in March. Total platform assets reached $255 billion in May, an 89% year-over-year increase. These metrics underscore the platform’s appeal to retail investors, particularly as competitors in the meme stock and crypto trading spaces face heightened competition.

Earnings per share are projected to reach $0.30, up from $0.21 in the prior-year quarter. Analysts have raised price targets ahead of the earnings release, reflecting optimism about the company’s trajectory. However, investors will also scrutinize guidance for new products, including Robinhood Gold memberships and prediction markets, which could diversify revenue streams beyond trading fees.

Despite a strong year-to-date stock performance of over 162%, HOOD closed Tuesday’s session down 3.23% at $103.32, trading within its 52-week range of $13.98 to $113.44. The stock’s volatility reflects both bullish momentum and market skepticism about long-term profitability.

The results will be critical for validating Robinhood’s ability to capitalize on crypto tailwinds while navigating regulatory scrutiny and competitive pressures. With crypto trading volume and customer growth remaining central to its strategy, the upcoming report could determine whether the stock sustains its rally or faces profit-taking pressures.

Source: [1] Robinhood Q2 Preview: Will Crypto Surge Lift Results, Shares? (https://www.benzinga.com/trading-ideas/previews/25/07/46709104/robinhood-q2-preview-will-crypto-surge-lift-results-shares?utm_source=coingecko&utm_campaign=partner_feed&utm_medium=partner_feed&utm_content=site)