Robinhood reported a record Q2 net revenue of $1.31 billion, up 32% year-over-year, driven by a surge in event contracts and equities trading. But crypto revenue fell 38% to $100 million, a notable weak spot as the company pushes into new areas like its own blockchain and Canadian expansion.
Event contracts explode
Event contracts revenue hit $156 million, more than 10 times higher than a year earlier. The number of event contracts traded surged more than 10x to a record 13.6 billion. Over 3.5 billion event contracts have been traded to date. This is a new growth engine for the brokerage.
Equities and options climb
Options revenue rose 29% to $342 million. Equities revenue jumped 95% to $129 million, with equity notional trading volumes reaching a record $956 billion, up 85%. Transaction-based revenue overall climbed 44% to $776 million.
Crypto revenue slides
Crypto revenue fell 38% year-over-year to $100 million, with crypto notional trading volume at $40 billion. The decline stands out against the rest of the business, though Robinhood didn't specify a cause. It's a reminder that crypto trading remains volatile for retail platforms.
New products and expansion
Robinhood launched Rothera, a CFTC-licensed exchange and clearinghouse, in June via a joint venture with Susquehanna International Group. The company also unveiled the public mainnet for Robinhood Chain, an Ethereum Layer 2 network for financial services and real-world assets. It announced stock tokens for eligible users in more than 120 countries. Agentic Trading launched in May; nearly 100,000 customers have opened accounts with over $100 million in assets under custody. And Robinhood closed its acquisition of WonderFi, a Canadian digital asset platform, marking its entry into the Canadian market.
Tenev's vision
CEO Vlad Tenev stated: 'Whether it’s the Robinhood Chain, Robinhood Ventures, or Trump Accounts, our product velocity is focused on one goal: making everyone an owner.' The quote ties together the company's flurry of product launches this quarter.
What's next: Robinhood's push into Canada via WonderFi and the ongoing rollout of Robinhood Chain will be key to watch in Q3. The company didn't provide forward guidance, but the mix of record revenue and declining crypto revenue raises questions about its crypto strategy going forward.
