Robinhood Markets reported record second-quarter revenue and earnings, beating analyst expectations as growth in options, equities and prediction markets offset a sharp decline in cryptocurrency transaction revenue.

Cryptocurrency transaction revenue fell 38% year over year to $100 million, down from $160 million a year earlier. Crypto trading volume on the Robinhood app was $18 billion, a 35% decline from the prior year. Overall, cryptocurrency was the only major transaction category to decline during the second quarter.

Transaction-based revenue climbed 44% to $776 million, lifted by a 29% rise in options revenue to $342 million and a 95% jump in equities revenue to $129 million. The company noted that new options trading features and the World Cup prediction market contributed to the growth.

Net income rose 48% to $573 million, while adjusted earnings per share came in at $0.62, beating the estimate of $0.43. Adjusted EBITDA increased 35% to $741 million. Robinhood also recorded record net deposits of $21.7 billion during the quarter, and total platform assets grew 32% year over year to $369 billion. Funded customers rose 7% to 28.4 million.

Blockchain and product expansion

Robinhood launched the public mainnet of Robinhood Chain, which supports tokenized US stocks for eligible European customers. Activity on the chain includes hundreds of millions of dollars in daily decentralized exchange volume and tokenized stocks such as GameStop, Nvidia and SpaceX being actively traded. The company also introduced tokenized US stocks to eligible users in more than 120 countries, according to the company.

Robinhood debuted its first decentralized lending product, Robinhood Earn, and completed the acquisition of Canadian crypto platform WonderFi. The company plans to expand crypto offerings in the United Kingdom. Additionally, Robinhood unveiled Agentic Trading, a set of AI tools for automated investing that allows customers to connect third-party AI assistants to their brokerage accounts. Nearly 100,000 customer accounts enrolled in Agentic Trading, representing over $100 million in assets under custody.

Robinhood also lowered its 2026 outlook for adjusted operating expenses and share-based compensation to a range of $2.675-$2.775 billion, from $2.7-$2.825 billion previously. Total operating expenses increased 33% to $734 million in the second quarter.

Robinhood shares fell 3.15% ahead of the earnings release on Wednesday and declined about 4% in after-hours trading. Over the past 12 months, the stock has declined 15% to $92.02 per share. Coinbase, a key peer, reports second-quarter earnings on Thursday.