Key Highlights

  • Total net revenues rose 32% year over year to a record $1.31 billion in the second quarter.
  • Diluted earnings per share increased 48% to $0.62, including gains from a fund deconsolidation.
  • Net deposits reached $21.7 billion for the quarter, an annualized growth rate of 28%.
  • Robinhood Gold subscribers grew 39% year over year to a record 4.8 million.

Trading Activity and Deposits Reach New Highs

Robinhood Markets, Inc. (NASDAQ:HOOD) reported second-quarter total net revenues of $1.31 billion, up 32% from a year earlier, with transaction-based revenue climbing 44% to $776 million. Event contracts revenue grew more than tenfold to $156 million, while options revenue rose 29% and equities revenue nearly doubled.

Total platform assets increased 32% year over year to $369 billion, supported by $21.7 billion in net deposits during the quarter, equivalent to an annualized growth rate of 28% relative to prior-period platform assets. Funded customers grew 7% to 28.4 million, while international funded customers surpassed 1 million for the first time following the company's acquisition of Canadian digital asset platform WonderFi.

Diversification Beyond Trading Gains Momentum

Net income rose 48% to $573 million, aided by $129 million in gains primarily tied to the deconsolidation of a venture fund. Total operating expenses increased 33% to $734 million, reflecting marketing investment, restructuring charges from a June workforce reduction, and costs associated with new business lines including a prediction markets venture and the WonderFi acquisition.

The company now counts thirteen business lines generating more than $100 million in annualized revenue, with its credit card business and Robinhood Legend trading platform the newest additions to that list. Robinhood Gold subscribers reached 4.8 million, up 39% year over year, with an adoption rate of 17% among funded customers and roughly 40% of new customers signing up for the subscription tier in the quarter.

Net interest revenue grew a more modest 9% to $389 million, as growth in interest-earning assets was partially offset by lower short-term interest rates. Margin book balances more than doubled year over year to a record $21.6 billion, reflecting increased customer borrowing activity.

New Ventures Widen the Business, But Regulatory and Concentration Risks Persist

Management's 2026 expense outlook was narrowed to a range of $2.675 billion to $2.775 billion for adjusted operating expenses and share-based compensation, incorporating costs from the newly launched Rothera prediction markets exchange and the WonderFi acquisition. The company continues to expand internationally, including a new capital markets services license in Singapore and plans for additional crypto offerings in the United Kingdom.

Some risks could weigh on this expansion. Cryptocurrency revenue declined 38% year over year in the quarter, reflecting lower trading volumes even as other business lines grew substantially, suggesting continued dependence on market conditions across specific asset classes. The company's international joint venture structure for Rothera, which it does not wholly control operationally, may also introduce complexity as prediction markets scale.

Regulatory developments remain a further consideration, given the company's exposure to evolving rules around payment for order flow and the relatively new regulatory treatment of event contracts and cryptocurrency products across multiple jurisdictions.

Conclusion

Robinhood's second-quarter results reflect a business successfully diversifying beyond its original brokerage roots, with prediction markets, banking, and international expansion each contributing to record revenue and deposit growth. Continued momentum likely depends on whether newer business lines such as Rothera and Robinhood Banking can scale as reliably as the company's established equities and options franchises, while regulatory clarity around event contracts remains an area to monitor.