Robinhood slides 4% despite earnings beat as crypto revenue cools
Robinhood reported record quarterly revenue of $1.31 billion, beating analyst expectations despite a 38% decline in crypto trading revenue. The company is pivoting toward new product offerings, including a blockchain network for tokenized stocks and AI-driven automated trading tools.
Why it matters
The results illustrate a shift in fintech business models as companies diversify away from volatile crypto markets toward traditional asset tokenization and AI integration.
The online brokerage reported adjusted earnings per share of $0.62, well ahead of analysts' $0.43 estimate, while revenue climbed 32% from a year earlier to a record $1.31 billion, narrowly topping the $1.29 billion consensus forecast.
The results reflected strength across Robinhood's expanding product lineup, even as crypto trading cooled. Crypto revenue fell 38% year over year to $100 million from $160 million, while transaction revenue was lifted by surging options, equities and prediction markets activity.
"Whether it's the Robinhood Chain, Robinhood Ventures, or Trump Accounts, our product velocity is focused on one goal: making everyone an owner," Vlad Tenev, Chairman and CEO of Robinhood, said in a statement.
The second quarter marked one of Robinhood's biggest product pushes in recent years. The company launched Robinhood Chain, a blockchain network that supports tokenized U.S. stocks for eligible European customers as part of its push to bring traditional financial assets onchain.
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