Robinhood shares drop 4% despite earnings beat, crypto revenue falls 38%

Robinhood (HOOD) reported adjusted earnings per share of 0.62, exceeding analysts' estimate of 0.43, while revenue rose 32% year over year to 1.31 billion, slightly above the 1.29 billion consensus forecast. Despite these results, shares fell about 4% in after-hours trading, adding to a 3.1% decline during Wednesday's session. Crypto revenue decreased 38% year over year to 100 million from 160 million, reflecting a cooling in crypto trading, while transaction revenue benefited from increased activity in options, equities, and prediction markets. The second quarter marked significant product launches, including Robinhood Chain, a blockchain network for tokenized U.S. stocks aimed at European customers, and Agentic Trading, AI tools for automated investing. The network has seen rapid growth, with hundreds of millions in daily decentralized exchange volume. Robinhood's performance may provide insights into Coinbase's upcoming earnings report, as both companies are influenced by retail trading and crypto market sentiment. An investor call is scheduled for 5pm E.T.