Robinhood Reports 65% Increase in Q2 Revenue Driven by Diverse Offerings
Robinhood (HOOD) has shown significant growth in its business model, as detailed in a recent Reuters report. The trading platform reported a 65% increase in transaction-based revenue to $539 million in Q2, driven by:
- 46% rise in options trading
- 65% increase in equities
- Nearly doubled revenue from cryptocurrency, boosted by the $200 million acquisition of Bitstamp
CEO Vlad Tenev highlighted improvements in company stability and a packed roadmap of new products, including tokenization and perpetual futures.
Meme-Stock Mania Resurgence
Piper Sandler analysts noted strong retail engagement on the platform, with record levels of equity and options trading in July, amid a resurgence of meme-stock activity reminiscent of the 2021 bull cycle. Stocks like Krispy Kreme and Kohl's have seen significant surges driven by retail investors.
CFO Jason Warnick expressed confidence in customer engagement and retention rates, positioning Robinhood for sustained growth. Analysts at JPMorgan anticipate that crypto will contribute 10% to 20% of Robinhood’s revenue, with expectations for continued increase.
Following the earnings report, HOOD stock reached record highs above $113, pushing market capitalization close to $94 billion. Several brokerages have raised their price targets, with Wall Street maintaining an average "buy" rating.
Currently, HOOD is valued at $103, reflecting a 3% drop in Thursday’s trading session.
