Table of Contents
a. Key Points
More market share gains.
Prediction markets are scaling rapidly.
Acceleration in organic net new funded customers.
Strong margins.
b. Demand
Beat revenue estimate by 2.2%.
Equities revenue was 4.9% ahead.
Options revenue was 1.1% ahead.
Crypto revenue was 11.5% ahead.
Event contracts revenue was split out of other revenue this quarter. It rose from $104M to $156M Q/Q. If this were included in other, that segment would have been well ahead of estimates.
Net interest income rose by 9% Y/Y mostly due to more deposits. Most of the growth here was tied to margin interest and its credit card.
Beat monthly active user (MAU) estimate by 2.2%.
Beat net deposit estimates by 21%. July deposits were $4B, which is a monthly low for 2026. Leadership emphasized that annualized deposit growth is more important and things can get noisy with that short of a time horizon.
Beat 27.9M funded account estimate by 500K.
It now has 13 $100M+ revenue businesses compared to 9 at the end of 2024. Most are still tied to retail investing end markets, but other tools like its credit card and instant withdrawals offer some diversification.
Robinhood continues to take market share across its major end markets.
c. Profits & Margins
Beat EBITDA estimate by 18%.
Adjusted OpEx rose by about 23% Y/Y.
Beat $0.44 GAAP EPS estimate by $0.18.
EPS rose by 48% Y/Y. This was aided by better-than-expected operating leverage as well as the strong revenue growth.
d. Balance Sheet
$5.4B cash & equivalents.
$2.2B convertible senior notes raised this quarter. The capital comes with a 0% coupon and dilution kicking in only if HOOD crosses $300/share.
Diluted share count rose by just 0.3% Y/Y.
e. Guidance & Valuation
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