Robinhood delivered a record second quarter on revenue and profit, but the 38% collapse in crypto transaction revenue underscores how much the brokerage still leans on the very asset class it is trying to diversify beyond. Overall revenue rose 32% year over year to $1.31 billion and net income climbed 48% to $573 million, yet the crypto line item, once the engine of Robinhood’s pandemic-era boom, shrank to $100 million from $160 million a year earlier. Shares slipped 3.15% ahead of the release, a muted reaction that suggests the market had already priced in the slowdown.
The crypto hole is structural
Cryptocurrency was the only major transaction category to decline during the quarter. Notional trading volume reached $40 billion, but the split tells the story: $18 billion came from the Robinhood app, down 35% from a year ago, while $22 billion flowed through Bitstamp, the exchange Robinhood acquired in June 2025. The acquisition pads the top line but does not reverse the retail disengagement that has dogged the platform since the 2021 peak. Transaction-based revenue still grew 44% to $776 million because every other vertical, equities, options, event contracts, picked up the slack.
Equities and event contracts carry the load
Equities revenue nearly doubled to $129 million, options revenue rose 29% to $342 million, and event contracts, the newest bet, surged more than tenfold to $156 million. The latter is still a rounding error in absolute terms, but the trajectory suggests Robinhood has found a product that converts engagement into revenue without relying on crypto volatility. Net deposits hit a record $21.7 billion, pushing total platform assets 32% higher to $369 billion and funded accounts up 7% to 28.4 million. The user base is growing, and it is trading more of what Robinhood wants it to trade.
Building the next rail while the old one cools
While crypto trading revenue faded, Robinhood spent the quarter laying infrastructure for a post-trading future. It closed the WonderFi acquisition, launched the Robinhood Chain mainnet, rolled out tokenized U.S. stocks to users in more than 120 countries, and introduced Robinhood Earn, its first decentralized lending product. DefiLlama data shows the Ethereum layer-2 network already holds $348 million in total value locked, over $500 million in stablecoins, and more than $1 billion in bridged assets. The numbers are small relative to the brokerage’s balance sheet, but they represent a deliberate shift from facilitating speculation to owning the rails.
Expenses guided lower, but the spend is real
Adjusted EBITDA rose 35% to $741 million even as total operating expenses climbed 33% to $734 million. Management lowered and narrowed the 2026 outlook for adjusted operating expenses and share-based compensation to a range of $2.675 billion to $2.775 billion, down from the prior $2.7 billion to $2.825 billion band. The guidance signals confidence that the product expansion can scale without proportional cost growth. What to watch next is whether the new crypto primitives, chain, tokens, lending, can generate revenue that looks more like the recurring equities stream and less like the boom-bust transaction fees that just dropped 38%.