Robinhood (HOOD) delivered a better-than-expected second quarter, but a steep decline in crypto revenue weighed on investor sentiment and pushed the stock lower after the report. Shares fell 3.1% in regular Wednesday trading and dropped about 4% more after hours.
The online brokerage reported adjusted earnings per share of $0.62 for the quarter, ahead of the $0.43 analysts had expected. Revenue rose 32% from a year earlier to a record $1.31 billion, slightly above the $1.29 billion market forecast.
Crypto revenue fell despite stronger overall results
The weak spot in the quarter was Robinhood’s crypto business. Crypto revenue fell 38% year over year, dropping from $160 million to $100 million.
Robinhood said the broader results were supported by active trading in options, stocks, and prediction markets, which helped offset softer crypto trading. The company’s expanding product lineup also helped fill part of the gap left by the slowdown in digital-asset activity.
Robinhood Chain and tokenized stocks moved into focus
The second quarter was also one of Robinhood’s most active periods for product launches in recent years. The company formally introduced Robinhood Chain and began offering tokenized U.S. stocks to eligible users in Europe, part of a broader push to bring traditional financial assets on-chain.
According to the report, activity on Robinhood Chain has climbed rapidly since launch. Daily trading volume on decentralized exchanges, or DEXs, on the network has reached the hundreds of millions of dollars. Tokenized shares tied to GameStop, Nvidia, and SpaceX have become some of the most actively traded real-world assets, or RWAs, on the network.
For now, meme coins and stablecoins still account for most on-chain activity there. Even so, trading in tokenized stocks has been expanding steadily in recent weeks.
Company also introduced Agentic Trading
Robinhood also unveiled a new AI toolkit called Agentic Trading. The product lets users connect third-party AI assistants to their brokerage accounts so those tools can monitor markets around the clock and execute trades automatically based on user instructions.
The company said the product was built to keep users in control of their funds while enabling automated investing, using separate trading accounts, spending limits, and manual approval options.
Chairman and Chief Executive Officer Vlad Tenev said in a statement, “Whether it’s Robinhood Chain, Robinhood Ventures, or Trump Accounts, the pace of development across all of our products is centered around the same goal: to let everyone become an owner of assets.”
Results seen as a signal for Coinbase
The earnings report is also being watched as a possible signal for Coinbase (COIN). While the two companies do not share the same business model, both rely heavily on retail trading activity and the overall tone of the crypto market.
After Robinhood disclosed the drop in crypto revenue, analysts and investors are watching whether Coinbase can post stronger trading revenue in the second quarter as crypto prices and volumes recovered, or whether it may face the same pressure from softer retail participation.