Robinhood’s Leaders Hail Strong Q2 Performance

Robinhood’s leaders announced that its event contracts have more than doubled in the second quarter of the year, underpinned by the rapid growth of prediction markets as a whole.

Robinhood’s Growth Continued

According to the company’s co-founder and chief executive, Vladimir Tenev, Robinhood experienced tremendous growth in several key areas. He elaborated that Robinhood ended the quarter as the number one in terms of active traders and wallet share for the next generation, and the number one global financial ecosystem.

Needless to say, these achievements were due to record-breaking trading volumes, with futures reaching 11 million, index volumes increasing by 60% from Q1 to 17 million and event contracts more than doubling from Q1, reaching nearly 1 billion in the second quarter.

Unlike some of its competitors, Robinhood does not host its own exchange but allows its users to access Kalshi’s markets. Robinhood has to pay one cent for each transaction, meaning that it generated approximately $10 million in fees for Kalshi.

Tenev attributed the company’s growth to a variety of factors, including its continued efforts to innovate and stay ahead of the curve. New tooling capabilities and loyalty offerings have channeled even more traders toward the platform, ensuring its success.

Tenev added that average assets per funded customer reached $10,000 and noted:

So a lot of people thought Robinhood is always going to be in the low single-digit thousands per account, but we just keep compounding and that assets per customer keeps marching upward.

Vladimir Tenev, co-founder & CEO, Robinhood

The Company’s Financial Performance Was Great, CFO Warnick Said

In the meantime, Jason Warnick, the company’s chief financial officer, addressed the more technical aspects of the Q2 performance, saying that Robinhood’s revenues reached $989 million for the period, driven by strong YOY growth and robust trading volumes.

Warnick was pleased with the rapid growth in contracts, saying that the company’s products enjoyed a strong momentum. He added that the company’s Gold cash sweep balances crossed $30 billion, marking a tenfold increase from when the company first started the high-yield offer 3 years ago.

Speaking of Robinhood Gold, the platform recorded 3.5 million subscribers, marking a stellar 75% year-on-year increase.

At the same time, Robinhood continued to spend in a disciplined manner following the closure of its acquisition of Bitstamp. Thanks to this, the company’s revenues were up 45% year-on-year, with 81% incremental adjusted EBITDA margins and double EPS compared to the prior year period.

Warnick added that the start to Q3 has been great so far, as the company has continued to record growth. Sports contracts remained the leading vertical, although political contracts remained very popular as well.