Robinhood's quarterly revenue beats estimates on the back of strong prediction market volumes

Overview

• U.S. retail brokerage's Q2 revenue rose 32% yr/yr, beating analyst expectations

• Adjusted EBITDA for Q2 beat analyst expectations, rising 35% yr/yr

• Company repurchased $414 mln in shares during the quarter

Outlook

• Robinhood lowers 2026 adjusted operating expenses and SBC outlook to $2.675-$2.775 bln

• Company says expense outlook excludes provision for credit losses and significant regulatory costs

• Robinhood plans to accelerate product launches and expand internationally in 2026

Result Drivers

• TRANSACTION REVENUE GROWTH - Co said transaction-based revenues rose 44% yr/yr, driven by event contracts, options, and equities trading

• NEW BUSINESS LINES - Co said growth in Trump Account service revenues and increased Robinhood Gold subscriptions boosted other revenue

• NET INTEREST REVENUE - Co said net interest revenues rose 9% yr/yr, supported by growth in interest-earning assets

Company press release: ID:nGNXqgZRw

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 23 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the financial technology (fintech) peer group is "buy"

• Wall Street's median 12-month price target for Robinhood Markets Inc is $127.50, about 37.5% above its July 28 closing price of $92.76

• The stock recently traded at 39 times the next 12-month earnings vs. a P/E of 28 three months ago

Reuters Recommended Reads

• July 29 - Robinhood CEO Vlad Tenev provides update on X account hack

• July 29 - SoFi's unchanged profit forecast tempers record quarter, revenue outlook lift

• July 28 - PayPal Q2 revenue beats on strong momentum in Venmo and Braintree

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)