Robinhood stock declined Thursday after the company on Wednesday reported a major Q2 beat.
The online brokerage saw a major jump in cryptocurrency revenue, but didn't quite meet analyst expectations.
Robinhood reported that earnings doubled to 42 cents per share while revenue soared 45% to $989 million.
Analysts polled by FactSet expected earnings of 31 cents per share on $915 million in revenue.
Transaction-based revenue jumped 65% to $539 million, compared to views for $516 million.
Options revenue surged 46% to $256 million. Analysts estimates called for $251 million in options revenue.
Cryptocurrency revenue spiked 98% to $160 million, but stopped short of FactSet estimates for $169 million. Crypto trading volumes on the Robinhood App jumped 32% for the quarter, to $28 billion.
Equities revenue increased 65% to $66 million, also missing estimates for $68 million.
Monthly active users grew to 12.8 million, up from 11.8 million last year. That's down from 14.4 million active users in Q1, and missed expectations for 13.7 million.
Robinhood's average revenue per user increased 34% to $151. Analysts expected an average revenue of $143.57 per user.
Robinhood in early June announced it completed its $200 million acquisition of Bitstamp. The crypto exchange has over 500,000 funded retail customers and 5,000 institutional customers as of April 30, and generated $95 million in total revenue over the past 12 months, according to that release. Robinhood in the Q2 earnings lifted its adjusted operating expense outlook for the year, due to $65 million in expected costs related to the Bitstamp acquisition. The company now anticipates $2.15 billion to $2.25 billion in adjusted operating costs for 2025.
Robinhood in early July launched tokenized stock trading, as well as other crypto offerings, which prompted major price target hikes from analysts. CEO Vlad Tenev in the earnings release said that he believes tokenization "is the biggest innovation our industry has seen in the past decade."
Robinhood Stock
HOOD stock swung between a gain and loss on Thursday, ending the day with a 2.9% decline. Robinhood swung 2.7% higher during Wednesday's session.
Shares jumped about 10% this month and hit a record high of 113.44 on July 18.
Robinhood has rallied more than 176% so far this year.
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