Crypto Revenue Accounts for 16%: Robinhood's Q2 Earnings Report Break Down

By Techflow FTD

Translator: Naetitia

Financial Report Analysis

Robinhood have recently published their Q2 2025 Earnings Report and it shows Robinhood's Q2 total reached $989 million, marking a 45% year-over-year growth. Net income surged to $386 million, with a profit margin of 39%, demonstrating a significant improvement compared to the same period last year. These figures strongly reflect Robinhood's steady progress in the market and highlight its potential to solidify its position in the highly competitive brokerage industry.

In terms of revenue composition, transaction-based revenues (including options trading, stock trading, and cryptocurrency trading) amounted to $539 million, representing a 65% year-over-year growth. This growth was primarily driven by the simultaneous increase in cryptocurrency and stock trading volumes. Robinhood's proactive Web3 transformation strategy, particularly its focus on crypto-related business, has become a key engine for transaction revenue growth.

Interest revenue reached $302 million, benefiting from the expansion of cash management products, while subscription services (primarily Robinhood Gold) contributed $114 million, a 76% year-over-year increase, with subscriber numbers rising to 3.5 million. This demonstrates Robinhood's success in building high-stickiness revenue streams.

Compared to Q2 2024 (total revenue of $682 million and net income of $188 million), Robinhood's revenue structure has become increasingly diversified, significantly reducing the risks associated with relying on a single revenue source.

Behind these figures, Robinhood showcases its ability to balance user growth and cost management. The notable increase in net income indicates that the company has successfully controlled operating expenses while seizing market opportunities. Particularly in the context of changing interest rate environments and user behaviors, the growth in interest and subscription revenues has provided strong support for improved profit margins.

However, the diversification of revenue streams also presents new considerations: while the rapid growth of transaction revenue is encouraging, its reliance on PFOF (Payment for Order Flow) may face regulatory uncertainties. Meanwhile, the expansion of subscription services requires continuous enhancement of user experience to sustain growth momentum. These numbers not only reflect current performance but also offer clear guidance for the company's future strategic adjustments, laying an important foundation for its ongoing Web3 transformation.

Growth in Cryptocurrency Revenue by 98%

In the past second quarter, Robinhood's most significant innovation was its venture into the cryptocurrency sector. According to its financial report, Robinhood's cryptocurrency trading revenue for Q2 reached $160 million, marking an impressive 98% growth compared to $80.8 million in the same period last year. What makes this growth particularly noteworthy is that cryptocurrency revenue now accounts for 16% of Robinhood's total revenue. This substantial proportion demonstrates that crypto trading has evolved from a supplementary offering to a core revenue driver for the platform.

This remarkable growth in the cryptocurrency domain can be attributed to two major initiatives by Robinhood this year: the acquisition of Bitstamp and the launch of tokenized U.S. stock trading services.

On June 2, 2025, Robinhood announced the completion of its $200 million acquisition of Bitstamp, one of the longest-operating global cryptocurrency exchanges. This acquisition not only provided Robinhood with a mature network of crypto exchanges covering Europe, the UK, and Asia but also brought over 50 global regulatory licenses.

More importantly, Bitstamp's institutional client base addressed Robinhood's longstanding reputation as a "retail paradise," strengthening its position in both retail and institutional markets. This move also equipped Robinhood with the capability to compete with world-renowned cryptocurrency exchanges like Binance and Coinbase.

The acquisition of Bitstamp has significantly bolstered Robinhood's expansion into the cryptocurrency sector. Market sentiment was vividly reflected in Robinhood's stock price, which surged by 13% to $74.42 in pre-market trading on June 4, following the announcement of the acquisition's completion.

Beyond the numerical growth, the strategic significance of the Bitstamp acquisition cannot be overstated. It marks Robinhood's transformation from a retail-focused trading platform into a global retail and institutional fintech enterprise. Furthermore, it enhances Robinhood's competitiveness within the cryptocurrency domain.

In addition to the strategic acquisition of Bitstamp, Robinhood has also achieved groundbreaking innovation in technology by launching tokenized stock trading services for the European market.

On June 30, 2025, during the "Robinhood Presents: To Catch a Token" event held in Cannes, France, Robinhood officially announced the launch of tokenized U.S. stock products, which went live in the EU region on July 1.

Robinhood currently supports the tokenized trading of over 200 popular U.S. stock and ETF assets, including favorites such as Apple and Nvidia. Remarkably, it also includes tokenized shares of private companies like OpenAI and SpaceX. Although the founders of these two companies have publicly questioned this move, Robinhood has undoubtedly achieved its goal — capturing the attention of global investors interested in U.S. stock trading.

Robinhood's Competitors and Strategic Positioning

Robinhood's impressive performance in Q2 has sparked comparisons between Robinhood and traditional brokerage firm Futu in the market.

As a traditional brokerage, Futu is now facing an increasingly formidable "young challenger." On the X platform, some users have shared their comparative analyses of the two brokerage firms.

X user @bruce_aiweb3 provided a detailed comparison between Robinhood and Futu across various dimensions. From a product background perspective, Robinhood was created by Stanford high-frequency trading software developers rather than Wall Street insiders, giving it a technology-first approach. Its smooth user experience and “gamified” design have made Robinhood highly popular among younger retail investors.

In contrast, Futu benefits from its strong "Tencent" background, inheriting the tech giant's precise market insight and product control capabilities. Futu's killer products and highly engaging community are key strengths. However, this background also introduces geopolitical risks that Robinhood does not face.

From a revenue model perspective, Robinhood primarily relies on Payment for Order Flow (PFOF) and interest income. Although these sources are cyclical, they generate significant revenue during favorable cycles. Futu’s revenue streams are more diversified, including commissions, interest income, and high-margin B2B enterprise services (IPO distribution, IR, ESOP management), which enhance its resilience against market fluctuations.

From a data comparison standpoint, Robinhood’s price-to-earnings ratio (P/E) is approximately 63x, far exceeding Futu’s 10.5x. Robinhood also boasts a larger user base, with 25.9 million accounts—roughly ten times more than Futu. However, Futu's users have higher average assets.

Due to Futu's Q2 financial report not yet being released, the comparison uses Q1 financial data for both companies. Robinhood demonstrated greater scale ($927 million vs. $603 million) but lower profit margins (36.2% vs. 45.6%). This highlights Robinhood's rapid global expansion and broader coverage but also reveals its lack of the steady profitability that Futu has built over the years.

This trend is further reflected in the fiscal year 2024 vs. 2023 comparison: Robinhood achieved a 58.6% revenue growth and $1.41 billion in net profit, reversing its previous loss trend. Futu, on the other hand, demonstrated steady growth, with revenue increasing by 36.7% and net income rising by 28.3% to $699 million.

Looking ahead, Robinhood is addressing regulatory challenges as it embraces the global Web3 wave, steadily advancing toward becoming a global brokerage giant. However, Futu continues to face long-standing geopolitical risks that may not have a viable resolution in the short term.

In addition to Futu, Robinhood has also been compared to the rising decentralized exchange (DEX) Hyperliquid in the Web3 space.

Data comparisons from May and June show that Hyperliquid's trading volume surpassed Robinhood's during these months.

Source: X user @jonbma

However, some users pointed out that Hyperliquid's trading volume is inflated due to perpetual contracts, making the comparison unfair.

Nonetheless, many users believe that Hyperliquid is severely undervalued. This indirectly underscores the enormous demand for cryptocurrency trading and validates Robinhood's strategic decision to pivot toward Web3. With its more diversified business model and broader global market reach, Robinhood maintains a deeper competitive moat compared to Hyperliquid.

Whether it's Futu or Hyperliquid, Robinhood has its own competitive advantages and barriers in these comparisons. Currently, it is navigating a multi-dimensional competitive landscape characterized by stable profitability, explosive growth, and technological innovation in the Web3 era. Robinhood's robust Q2 performance has further solidified its market position.

Leading the Second Half of the Year

Robinhood's Q2 financial report has provided the market with a clear answer: embracing cryptocurrency is undoubtedly the right decision for traditional brokerage firms.

Amid the rising global acceptance of Web3, Robinhood has emerged as a leader riding this transformative wave. In the second half of this year, Robinhood plans to further advance its crypto-related initiatives, including the acquisition of Canadian digital asset service provider WonderFi, launching cryptocurrency perpetual futures trading in Europe, and offering a broader portfolio of crypto products to its clients.

We look forward to seeing how this "Robin Hood," supported by retail investors, continues to drive the integration of crypto and traditional finance during the second half of the year, delivering an even more outstanding performance.