Robinhood Surpasses Earnings Forecasts With 7% Revenue Growth

Robinhood’s second-quarter results showcased a significant turnaround as the digital brokerage outperformed expectations with a robust revenue increase and strong earnings. The company reported revenue of $989 million, reflecting a 7% quarter-over-quarter growth and surpassing the FactSet consensus of approximately $915 million. Additionally, it posted earnings per share of 42 cents, well above the analyst forecast of 31 cents [1].

Despite a 36% decline in crypto transaction revenue compared to the previous quarter, Robinhood’s diversified business model helped cushion the blow. The company has actively broadened its offerings to reduce its historical reliance on retail trading activity and crypto surges. This includes expanding into interest-generating services, such as margin trading and cash balance interest, which now contribute nearly 30% of its total revenue [1].

The online brokerage also bolstered its subscription model through Robinhood Gold, which accounted for about 10% of Q2 revenue. This service allows users to pay a monthly fee to access enhanced features, such as higher yield on cash balances. These strategic shifts highlight a deliberate move away from volatile markets toward more predictable revenue streams [1].

Robinhood’s CEO, Vlad Tenev, emphasized the firm’s transformation during the earnings call. “In 2021, when we went public, it felt to me like we were much more fragile than today,” he said. Tenev noted that the company now operates with a more diversified and resilient business model, reducing its vulnerability to market cycles [1].

Dan Dolev, a senior analyst at Mizuho Securities, remarked that Robinhood “hulk smashe[d]” its earnings, underscoring the impact of the company’s strategic diversification [1]. This shift in focus has positioned Robinhood to better navigate future market uncertainties and capitalize on new growth opportunities beyond its traditional trading model.

Source: [1] Robinhood ‘hulk smashes’ earnings as push to diversify revenue pays off (https://fortune.com/crypto/2025/07/30/robinhood-second-quarter-earnings-hulk-smash-diversification/)