Robinhood, the popular trading app once at the center of meme-stock mania, has evolved into a broader platform to keep retail investors engaged during market turbulence. The company reported a surge in volumes across equities, options, and cryptocurrencies in its second quarter.
In contrast to 2022, when Robinhood’s business was closely tied to retail stock buying, the firm’s trading revenue slumped by nearly half after the Federal Reserve’s rate-hiking cycle began in March. However, this trend has reversed, with transaction-based revenue increasing 65% from a year earlier to $539 million.
Options and equities trading volumes also saw significant growth, with options soaring 46% and equities climbing 65%. The company’s crypto presence was further strengthened by the $200 million acquisition of Bitstamp in June, boosting revenue. Crypto revenue nearly doubled, and analysts see the crypto market remaining sharply above pre-election levels.
The platform enjoys steady engagement even during quieter periods, according to Robinhood CFO Jason Warnick. “Some months will be higher than others, but we feel really good about the acquisition of new customers and the high retention rate,” he said.
Analysts at Piper Sandler praised the variety of products on the platform, which is supporting retail engagement, with equity and options trading volumes tracking at record levels in July. The company’s market capitalization has recently touched record highs, with a valuation close to $94 billion, and Wall Street’s average rating on the stock is “buy.”
Source: https://www.reuters.com/business/robinhood-outgrows-meme-frenzy-era-retail-trading-matures-2025-07-31