Robinhood (HOOD) Stock Soars on Strong Q2 Revenue
Robinhood (HOOD) stock experienced a significant surge after the company released its second-quarter results, which exceeded expectations. This increase was primarily driven by the near doubling of cryptocurrency trading revenue and substantial growth in user engagement. The report also highlighted a record number of Robinhood Gold subscribers.
Crypto and Tokenization Fuel Robinhood's Quarter
Total revenue increased by 45% year-over-year to $989 million, surpassing analysts' estimates of $921.5 million. Net income more than doubled to $386 million, or 42 cents per share.
- Crypto Trading: Generated $160 million, a 98% increase from the previous year.
- Ethereum and Solana Staking: Launched for U.S. users.
- Tokenized Equities: CEO Vlad Tenev emphasized tokenization as a key innovation.
- Global Expansion: Includes 30 European countries and the acquisition of Bitstamp.
- Robinhood Gold: Subscribers rose to a record 3.5 million.
Options and equity trading also contributed to a 65% rise in transaction-based revenue, while adjusted EBITDA increased by 82% to $549 million.
Total assets under custody reached $279 billion, nearly double the amount from last year. Year-to-date, the company’s earnings have rallied by 185%.
Stock Performance After Announcement
Following the earnings release, Robinhood stock jumped by over 4%, from approximately $103 to over $110 in extended trading, before stabilizing around $105.
The stock closed at $103.32 before the announcement. Intraday trading activity showed strong investor interest, briefly pushing HOOD to an intra-day peak before profit-taking began.