Table of Contents
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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.