Robinhood Markets Inc. (NASDAQ:HOOD) reported stronger-than-expected second-quarter results, with both earnings and revenue exceeding Wall Street forecasts. Although the stock initially declined in after-hours trading, it recovered to trade broadly unchanged in premarket trading by 06:31 ET on Thursday.
The online brokerage benefited from robust trading activity and disciplined cost management during the quarter, while a one-time accounting gain also contributed to its earnings performance.
One-Time Gain Helps Lift Earnings
Robinhood reported diluted earnings of $0.62 per share, beating the analyst consensus estimate of $0.42 by $0.20.
The result included a one-time benefit of approximately $0.14 per share, primarily related to the deconsolidation of Robinhood Ventures Fund I, which added $129 million to net income.
Total net revenue increased 32% year over year to a record $1.31 billion, exceeding analysts’ expectations of $1.25 billion.
Adjusted EBITDA climbed 35% from the prior year to $741 million, finishing 18% above consensus forecasts.
“Q2 EBITDA came in well ahead, driven primarily by expense savings (and FY expense guide-down despite some incremental pieces) with a more modest revenue beat,” Barclays analysts noted.
Trading Activity Drives Revenue Growth
Transaction-based revenue rose 44% year over year to $776 million, supported by strong customer trading activity across several asset classes.
Revenue from event contracts increased more than tenfold to $156 million during the quarter, while options and equities trading also recorded strong growth.
Cryptocurrency trading volumes, however, declined 38% compared with the same period last year.
Net interest revenue also contributed to the strong quarterly performance, rising 9% year over year to $389 million despite changes in the interest rate environment.
Company Lowers Full-Year Expense Outlook
Following the stronger-than-expected quarter, Robinhood revised its full-year 2026 expense guidance to reflect ongoing cost discipline and operational efficiencies.
Management lowered its projected range for adjusted operating expenses and share-based compensation to between $2.675 billion and $2.775 billion.
The previous guidance called for expenses of between $2.7 billion and $2.825 billion.
User Growth and Capital Returns Continue
Robinhood continued to expand customer engagement across its platform during the quarter.
Robinhood Gold subscriptions increased 39% from a year earlier to a record 4.8 million.
Net deposits reached $21.7 billion, helping total platform assets grow to $369 billion.
The company also continued returning capital to shareholders, repurchasing $414 million of common stock during the quarter at an average price of approximately $94 per share.
Robinhood stock price
