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

Robinhood Markets

29/07/2026 21:17

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
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$1.31 bln
$1.28 bln (17 Analysts)
Q2 EPS
 
$0.62
 
Q2 Net Income
 
$573 mln
 
Q2 Adjusted EBITDA
Beat
$741 mln
$613.72 mln (14 Analysts)
Q2 Operating Expenses
 
$734 mln
 

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.)