CoinDesk
Robinhood (HOOD) topped Wall Street's second-quarter expectations but shares slid about 4% in extended trading, adding to a 3.1% decline during Wednesday's session. The online brokerage posted adjusted earnings of $0.62 per share, well ahead of the $0.43 consensus, and record revenue of $1.31 billion, narrowly above the $1.29 billion estimate. The print masked a sharp cooling in crypto trading: crypto revenue fell 38% year over year to $100 million from $160 million, while transaction revenue was lifted by surging options, equities and prediction markets activity.
Why it matters
The market reaction captures a growing tension in Robinhood's story: the core brokerage franchise is firing on multiple cylinders, but the crypto line item that drove much of the 2024 narrative is now deflating. CEO Vlad Tenev pointed to product velocity as the offset, framing the quarter around Robinhood Chain, Robinhood Ventures and Agentic Trading AI tools. The question for the tape is whether the stock can keep rerating on tokenization and AI automation while the segment once responsible for the loudest headlines goes the other way.
Market impact
The report is an early read for Coinbase (COIN), which reports second-quarter results Thursday. Both venues are heavily exposed to retail crypto trading flows, so a 38% drop in Robinhood's crypto revenue sets a low bar and raises the bar for Coinbase to surprise positively. Watch transaction-based revenue and trading volume disclosures when Coinbase prints. For HOOD itself, the path of least resistance shifts to the tokenized-asset and AI product roadmap now that the crypto recovery trade is no longer doing the heavy lifting.
Frequently asked questions
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Why did Robinhood stock fall after beating earnings?
Shares slid about 4% in extended trading despite an EPS beat ($0.62 vs $0.43 consensus) and a record $1.31B revenue. The market focused on a 38% year-over-year drop in crypto trading revenue to $100M, which had been a key driver of the 2024 narrative.
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How much did Robinhood's crypto revenue decline in Q2?
Crypto trading revenue fell 38% year over year to $100 million, down from $160 million a year earlier. The decline was offset by stronger activity in options, equities and prediction markets.
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What new products did Robinhood launch this quarter?
Robinhood launched Robinhood Chain, a blockchain network supporting tokenized U.S. stocks for eligible European customers, and Agentic Trading, a set of AI tools that let third-party assistants monitor markets and execute trades under user-defined controls.
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How does Robinhood's report affect Coinbase's upcoming earnings?
Both companies are heavily exposed to retail crypto trading flows, so Robinhood's 38% drop in crypto revenue sets a cautious baseline. Investors will watch whether Coinbase's transaction revenue and trading volumes beat that low bar when it reports Thursday.
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What tokenized assets are trading on Robinhood Chain?
Tokenized U.S. stocks including GameStop, Nvidia and SpaceX have emerged among the most actively traded real-world assets on the network, alongside memecoins and stablecoins, with hundreds of millions in daily DEX volume.
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