Robinhood Markets posted record quarterly revenue in the second quarter of 2026, the company announced Wednesday, as a surge in options trading and a breakout quarter for its prediction markets business drove results well ahead of Wall Street expectations.
The Menlo Park, California-based company reported total net revenue of $1.31 billion for the three months ending June 30, up 32 percent year over year and topping consensus estimates of roughly $1.25 to $1.28 billion. Diluted earnings per share came in at $0.62, comfortably ahead of the roughly $0.41 analysts had expected.
Transaction-based revenue reached $776 million, up 44 percent from a year earlier. Options trading contributed $342 million, up 29 percent, while equities revenue jumped 95 percent to $129 million. Robinhood’s event contracts business, its prediction markets offering, was the standout performer, with revenue climbing more than tenfold year over year to $156 million as the number of contracts traded surged past 13.6 billion.
Cryptocurrency trading was the one weak spot in the report, with revenue falling 38 percent to $100 million from $160 million a year earlier, even as bitcoin and other digital assets swung on news from the Persian Gulf and shifting rate expectations.
Monthly active users rose to 14.1 million, up 1.3 million from the same period last year, while average revenue per user climbed 24 percent to $187, reflecting higher-margin options, event contract and equities activity.
The earnings report comes at a turbulent time for financial markets. The S&P 500 has swung more than 2 percent on multiple trading days in July as investors weighed the implications of the US-led military campaign against Iran, renewed tariffs on Chinese goods, and the Federal Reserve’s decision to hold interest rates steady.
Chief Executive Officer Vlad Tenev said the company benefited from what he called a structural shift in retail participation in markets, with individual investors increasingly treating trading, including prediction markets, as a primary financial activity rather than a casual endeavor.
Robinhood tightened its full-year guidance for adjusted operating expenses and share-based compensation to a range of $2.675 billion to $2.775 billion, down from a prior range of $2.7 billion to $2.825 billion, which the company described as reflecting efficiencies captured during the quarter. The company did not provide explicit revenue guidance for the third quarter.
Robinhood shares rose in after-hours trading following the earnings release, though the stock remains well off its 52-week high, reflecting broader concerns about valuation in the online brokerage space.
Sources: The Crypto Times, Yahoo Finance, FXStreet