Robinhood surprised investors with robust Q2 earnings, surpassing analyst expectations despite lingering market skepticism. The trading platform reported earnings per share of $0.42, significantly higher than the projected $0.31 and a sharp increase from $0.21 in the same period last year. Revenue soared to $989 million, up 40% year-over-year, fueled by heightened trading activity, particularly in cryptocurrencies and meme stocks. User growth accelerated, with 750,000 new funded accounts added in Q2, while Gold subscriptions surged by 1.5 million annually.
Banking Expansion and Upgraded Targets
Two major investment firms raised their price targets for Robinhood, citing strong fundamentals and growth potential. The platform’s crypto revenue nearly doubled year-over-year, and managed retirement assets grew 1.8-fold. Analysts highlighted the upcoming launch of Robinhood Banking as a key catalyst, prompting revised valuation models. Despite a 185% year-to-date stock surge—far outpacing the S&P 500’s 8% gain—investors remain cautious, questioning whether the growth momentum is sustainable or cyclical. The stock fluctuated post-earnings, reflecting mixed sentiment.
