Summary
Robinhood Markets, Inc. (HOOD) reported a strong second quarter for fiscal year 2026, with total net revenues increasing 32% year-over-year to $1.31 billion, driven by a significant rise in transaction-based revenues, particularly from options, event contracts, and equities. Net income attributable to Robinhood also saw robust growth, up 45% to $561 million, translating to a diluted EPS of $0.62. This financial performance was supported by continued customer growth, with Funded Customers increasing 7% to 28.4 million and Robinhood Gold Subscribers growing 39% to 4.84 million. Total Platform Assets grew 32% to $368.7 billion, reflecting strong net deposits and positive market movements, although partially offset by lower cryptocurrency valuations. The company also announced a workforce reduction of approximately 10% and successfully closed several strategic acquisitions, including WonderFi, further expanding its market reach. Financially, the company issued $2.2 billion in convertible senior notes and repurchased $374 million of its Class A common stock, indicating active capital management. Despite increased operating expenses, particularly in general and administrative, and technology and development, the company demonstrated solid profitability and a positive outlook for liquidity.
Key Highlights
- 1Total net revenues increased 32% to $1.31 billion for the three months ended June 30, 2026, compared to $989 million for the same period in 2025.
- 2Net income attributable to Robinhood increased 45% to $561 million for the three months ended June 30, 2026, compared to $386 million in 2025.
- 3Diluted EPS grew to $0.62 for the three months ended June 30, 2026, up from $0.42 in the prior year period.
- 4Funded Customers increased by 7% to 28.4 million, and Robinhood Gold Subscribers grew by 39% to 4.84 million.
- 5Total Platform Assets rose 32% to $368.7 billion, driven by net deposits and market gains, offset slightly by lower crypto valuations.
- 6The company acquired WonderFi and successfully issued $2.2 billion in convertible senior notes.
- 7Operating expenses increased 33% to $734 million, driven by higher general and administrative, technology and development, and operations costs, including expenses related to acquisitions and new product launches.