Robinhood beat Wall Street expectations for the second quarter Wednesday, extending a hot streak that has made it the best-performing large-cap U.S. tech stock this year.
Here is how Robinhood's results compared to Wall Street estimates, according to analysts surveyed by LSEG:
Earnings per share: 42 cents vs. 31 cents expected
42 cents vs. 31 cents expected Revenue: $989 million vs. $908 million expected
Revenue jumped 45% year-over-year to $989 million, while net income more than doubled to $386 million, up 105% from the same quarter last year.
The number of funded customers climbed by 2.3 million to 26.5 million, topping the StreetAccount estimate of 26.1 million. Investment accounts also grew 10% year-over-year to 27.4 million.
Total platform assets nearly doubled, rising 99% from a year earlier to $279 billion, driven by strong net deposits, acquired assets, and higher equity and cryptocurrency valuations, according to the release.
Robinhood is closing the gap with Coinbase as it pushes beyond retail trading into full-scale wealth management. The company has been aggressively offering deposit matches to lure clients from Fidelity and Schwab, and assets under management have grown with its TradePMR acquisition.
Total operating expenses increased 12% to $550 million. On a non-GAAP basis, adjusted operating expenses and share-based compensation rose 6% to $522 million, reflecting costs tied to the Bitstamp acquisition.
Transaction-based revenue, which is a proxy for trading activity, came in at $539 million, ahead of StreetAccount's $517 million estimate. Options trading contributed $265 million, beating the $250 million estimate, while crypto and equities revenue were slightly below forecasts, signaling a tilt toward higher-margin derivatives trading.
Cryptocurrency trading came in light of estimates at $160 million versus $168 million expected, and equities also missed StreetAccount's estimate at $66 million versus $69 million expected.