A month has gone by since the last earnings report for Robinhood Markets, Inc. (HOOD Quick QuoteHOOD - Free Report) . Shares have added about 26.7% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Robinhood Markets due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for Robinhood Markets, Inc. before we dive into how investors and analysts have reacted as of late.

Robinhood Q2 Earnings Beat on Trading & Platform Asset Growth

Robinhood reported second-quarter 2026 earnings of 62 cents per share, beating the Zacks Consensus Estimate of 44 cents by 40.9%. The bottom line increased 48% year over year. 

The reported quarter included $129 million, or 14 cents per share, of gains primarily related to the deconsolidation of Robinhood Ventures Fund I. Excluding this, underlying earnings were 48 cents per share.

Strong options, equities and event-contract activity amid heightened volatility led to an increase in transaction-based revenues. Higher net interest revenues (NIR), rising platform assets and a surge in Gold subscribers were tailwinds. However, continued weakness in crypto trading volume and higher operating expenses were the headwinds.

Net income climbed 48% to $573 million.

Revenue Mix Broadens

Total net revenues climbed 32% from a year ago to $1.31 billion. The top line surpassed the consensus mark of $1.26 billion.  

NIR increased 9% year over year to $389 million. Growth in interest-earning assets helped offset the impact of lower short-term interest rates and weaker securities-lending activity.

Other revenues climbed 54% to $143 million. The increase reflected Trump Account service revenues and higher Robinhood Gold subscription revenues. The quarter included $25 million of service revenues related to Trump Accounts.

Average revenue per user rose 24% year over year to $187. Robinhood also expanded the number of business lines generating at least $100 million in annualized revenues to 13, with Robinhood Legend and the Credit Card business joining the group.

Trading Revenues Accelerate

Transaction-based revenues increased 44% year over year to $776 million. Options revenues rose 29% to $342 million, while equities revenues surged 95% to $129 million. Event-contract revenues jumped more than tenfold to $156 million.

Cryptocurrency revenues remained a weak spot, declining 38% to $100 million. Crypto notional volume totaled $40.4 billion, including $18.3 billion from the Robinhood app and $22.1 billion from Bitstamp. Overall crypto volume fell 39% sequentially.

Trading engagement remained strong elsewhere. Equity notional volume advanced 85% year over year to a record $956 billion, while options contracts traded grew 50% to a record 774 million. Event contracts traded reached a record 13.6 billion.

Customer Assets Reach New Highs

Funded Customers increased 7% year over year to 28.4 million, including roughly 300,000 customers added through the WonderFi acquisition. Investment Accounts rose 9% to 29.9 million.

Total Platform Assets advanced 32% to $369 billion, aided by continued net deposits and higher equity valuations. These benefits were partly offset by lower cryptocurrency valuations. Average platform assets per funded customer reached $13,000.

Net deposits totaled a record $21.7 billion, representing a 28% annualized growth rate. Robinhood Retirement assets under custody surged 82% to a record $34.5 billion.

Robinhood Gold subscribers increased 39% year over year and 11% sequentially to 4.84 million. Gold adoption reached 17% of funded customers, up from 13.1% a year earlier. The company noted that roughly 40% of new funded customers enrolled in Gold during the quarter. Annualized Gold subscription revenues reached $216 million. 

Other wealth products also gained traction. Robinhood Strategies grew to more than 300,000 funded customers and nearly $2 billion in assets under management. Robinhood Banking ended June with more than $3 billion in deposits from over 240,000 funded customers.

Costs Up on Growth Investments

Total operating expenses increased 33% year over year to $734 million. The increase reflected marketing and growth investments, restructuring charges and expenses related to Trump Accounts and Rothera.

Adjusted operating expenses and share-based compensation rose 23% to $641 million. 

Robinhood’s profitability remained solid despite the higher expense base. Adjusted EBITDA increased 35% to $741 million, while the adjusted EBITDA margin improved to 57% from 56% a year earlier.


 

Share Buyback Updates

Robinhood continued returning capital to shareholders. The company repurchased $414 million of Class A common stock during the quarter, representing 4.4 million shares at an average price of approximately $94 each. This included $290 million of repurchases tied to its June convertible-notes offering and conducted outside the existing authorization.

Since launching its initial repurchase program in the third quarter of 2024, Robinhood has bought back $1.3 billion, or 27 million shares, at an average price of roughly $47.

2026 Outlook

Robinhood lowered and tightened its 2026 adjusted operating expenses and share-based compensation outlook to $2.675-$2.775 billion from the prior range of $2.7-$2.825 billion. The revised forecast reflects efficiency gains that helped fund costs associated with Rothera and WonderFi.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a downward trend in fresh estimates.

VGM Scores

At this time, Robinhood Markets has a poor Growth Score of F, however its Momentum Score is doing a lot better with an A. However, the stock has a score of F on the value side, putting it in the lowest quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Robinhood Markets has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Robinhood Markets is part of the Zacks Financial - Investment Bank industry. Over the past month, Interactive Brokers Group, Inc. (IBKR Quick QuoteIBKR - Free Report) , a stock from the same industry, has gained 6.7%. The company reported its results for the quarter ended June 2026 more than a month ago.

Interactive Brokers reported revenues of $1.88 billion in the last reported quarter, representing a year-over-year change of +27.2%. EPS of $0.69 for the same period compares with $0.51 a year ago.

Interactive Brokers is expected to post earnings of $0.65 per share for the current quarter, representing a year-over-year change of +14%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #1 (Strong Buy) for Interactive Brokers. Also, the stock has a VGM Score of F.