Robinhood reported strong earnings for the second quarter, with revenues hitting $682 million—an impressive 40% increase compared to the same period last year. This growth was largely driven by a revival in meme stocks.
The company’s earnings report highlighted a significant boost in crypto-related revenues, which soared by 161% year-over-year to $81 million. This surge reflects a renewed interest in cryptocurrency trading among retail investors.
Overall transaction-based revenues also grew, climbing 69% to reach $327 million. Robinhood attributed this increase to its expanded role in retail trading across various assets.
“Our focus this quarter was on rapid product launches and delivering exceptional value to our customers,” said Vlad Tenev, CEO and co-founder of Robinhood.
Robinhood’s Strategic Acquisitions
Robinhood strengthened its market position through strategic acquisitions. In June, the company announced it would acquire Bitstamp, Ltd., a major cryptocurrency exchange with a broad international presence. This move expands Robinhood’s capabilities, leveraging Bitstamp’s 50 active licenses across the EU, UK, US, and Asia.
Additionally, in July, Robinhood acquired Pluto Capital Inc., an AI-driven investment research platform. These acquisitions aim to broaden Robinhood’s service offerings and enhance its technological infrastructure.
In May, Robinhood also introduced new margin rates between 5.7% and 6.75%, which contributed to a more than 20% increase in margin balances, reaching a two-year high of $5 billion by the end of the second quarter.
Shareholder Returns and Recent Issues
The company is focused on returning value to shareholders, having authorized a $1 billion share repurchase program in May. This program, which began in July 2024, will be carried out over the next two to three years, reflecting Robinhood’s confidence in its future growth and commitment to its shareholders.
However, Robinhood faced a temporary setback earlier this week when it suspended its overnight trading services due to issues with its execution venue. The problem was linked to Blue Ocean ATS, the third-party firm responsible for handling round-the-clock trading for Robinhood.
