Robinhood Stock Hits Record High After Q2 Beat, But Rising Costs and Lofty Expectations Test Staying Power

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Robinhood delivered another blowout quarter, but the question for investors is whether the rally can keep running. The stock, which has surged from $29 on April 7 to above $100, broke out to an all‑time high on the back of second‑quarter results that easily topped Wall Street expectations. EPS nearly doubled year‑over‑year, revenues soared 45%, and customer assets approached $280 billion. Yet after such a meteoric rise, the key debate is whether these results are good enough to sustain momentum or if the market shifts into a “sell‑the‑news” mode in the coming days?

For Q2, Robinhood reported adjusted EPS of $0.42, well ahead of the $0.31 consensus, while revenue hit $989 million versus $908 million expected. That represented 45% growth from the prior year and extended Robinhood’s run as the best‑performing large‑cap U.S. tech stock of 2025. Net income more than doubled to $386 million. The company added 2.3 million funded customers, bringing its total to 26.5 million, and average revenue per user rose 34% year‑over‑year to $151, topping analyst forecasts. Platform assets nearly doubled year‑over‑year to $279 billion, powered by strong net deposits of $13.8 billion and market gains.

Transaction‑based revenue was a standout, coming in at $539 million versus StreetAccount’s $517 million estimate. Options trading contributed $265 million, beating forecasts, though crypto and equities were slightly softer, at $160 million versus $168 million expected for crypto and $66 million versus $69 million expected for equities. The tilt toward options, a higher‑margin product, helped drive profitability. Net interest revenue, fueled by growth in interest‑earning assets and securities lending, rose 25% year‑over‑year to $357 million, beating the $306 million consensus. Adjusted EBITDA surged 82% to $549 million, crushing estimates of $448 million.

On the product side, Robinhood Gold subscriptions continued to climb, hitting 3.5 million, up 76% year‑over‑year. CEO Vlad Tenev noted average assets per funded customer topped $10,000 for the first time, while retirement assets surpassed $20 billion. Robinhood Strategies, the firm’s digital advice platform launched earlier this year, grew to more than 100,000 funded customers and over $500 million in assets. Tenev also teased the rollout of Robinhood Banking this fall, calling it “a very innovative offering” aimed at drawing more assets onto the platform.

International expansion is also becoming a larger part of the story. Robinhood extended its European offerings to 30 countries and launched stock tokens, with perpetual futures “coming soon.” The recently closed Bitstamp acquisition positions Robinhood for deeper entry into institutional and crypto infrastructure markets. CFO Jason Warnick said crypto volumes hit six‑month highs in early July, adding that Q3 is off to “a great start” with about $6 billion in net deposits already.

Despite the strong beat, investors showed some caution during the earnings call as Warnick disclosed that costs tied to Bitstamp will add ~$65 million in 2025, pushing full‑year adjusted operating expenses and stock‑based compensation to $2.15–$2.25 billion. That guidance does not yet include anticipated costs from the pending WonderFi acquisition. Analysts flagged regulatory and execution risks, especially around Robinhood’s push into tokenization of real‑world assets and new prediction markets.

Management framed these investments as essential to growth. Tenev said customers traded nearly $1 billion worth of prediction market contracts last quarter, with more than $2 billion cumulatively since launch. Sports wagers dominated, but he suggested Robinhood would expand into broader cultural and news‑driven contracts. Meanwhile, the margin book hit $9.5 billion, up 90% year‑over‑year, as investors took advantage of lower borrowing rates to leverage trades — a tailwind for net interest income but also a risk if market volatility rises.

Compared to last quarter, revenue growth moderated slightly (from 50% in Q1 to 45% in Q2), but customer engagement remained robust, and product expansion accelerated. Index options volumes rose 60% quarter‑over‑quarter, and event contracts more than doubled. Management highlighted six straight quarters of net deposits exceeding $10 billion, underscoring durable demand even amid market volatility.

Key risks remain. Regulatory scrutiny of Robinhood’s crypto and tokenization initiatives looms large, particularly as the company introduces synthetic stock tokens in Europe — a move already drawing pushback from OpenAI, which disavowed tokens tied to its name. The sustainability of promotional incentives for customer acquisition is another question, as analysts pressed for clarity on economics. Volatility in net deposits is also a factor, though management emphasized the long‑term upward trajectory.

Overall sentiment from analysts was upbeat. Deutsche Bank raised its price target to $118, citing material upside to EPS forecasts and the potential for conservative estimates to be beaten again. Management’s confident tone, combined with a string of product rollouts and expanding revenue streams, reinforced the view that Robinhood is transitioning from a retail brokerage into a diversified global financial ecosystem.

Bottom line: Robinhood’s Q2 results reinforced the company’s rapid transformation, with record revenues, soaring customer assets, and ambitious expansion plans across banking, crypto, and prediction markets. But with the stock already up nearly 200% this year, investors will be weighing whether even strong execution can justify further gains — or if the extraordinary run sets up for a bout of profit‑taking.