Robinhood beats quarterly profit estimates as trading activity remains robust
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Srivastava, P. (2026, July 29). Robinhood beats quarterly profit estimates as trading activity remains robust. Reuters. https://www.reuters.com/business/finance/robinhood-quarterly-profit-rises-strong-trading-activity-2026-07-29/
Robinhood Markets exceeded Wall Street estimates for second-quarter profit, supported by strong trading in equities, options, and prediction markets that offset weaker cryptocurrency activity.
Adjusted earnings reached 48 cents per share, surpassing the analysts' average estimate of 44 cents based on data compiled by LSEG.
Transaction-based revenue rose 44 percent from a year earlier to $776 million, driven by gains in equities, options, and event contracts.
Event contracts generated $156 million in revenue during the quarter, reflecting the expanding contribution of prediction markets to overall results.
Heightened market volatility, attributed in part to the U.S.-Iran conflict and its effects on inflation and Federal Reserve rate expectations, kept retail investors active.
Analysts described prediction markets as an increasingly central growth driver that has shifted investor attention away from cryptocurrency.
Robinhood shares fell 0.8 percent in extended trading and have declined 20.6 percent year to date, with one strategist citing elevated valuation as a concern.