Robinhood continues to set record revenue, plans to repurchase $1 billion in stock

The online brokerage Robinhood has released its second-quarter financial report, with revenue continuing to grow to $682 million, a 40% increase from the same period last year. Revenue from cryptocurrency trading increased to $81 million, a 161% growth from the same period last year. Robinhood's stock price rose more than 2% after hours and is up 34% year-to-date.

Robinhood Continues to Grow Revenue

Robinhood's revenue for the second quarter reached $682 million, a 40% increase from the same period last year and a 10% increase from the previous quarter. The company has shown steady growth since 2022.

The largest revenue growth this quarter came from "Net interest revenues," which are the income generated from interest-earning assets minus the cost of debt repayment. Securities lending is also a major source of revenue. Revenue generated from trades remained almost flat compared to the previous quarter, reaching $327 million, a 69% increase from the same period last year.

Revenue from cryptocurrency trading was $81 million, a 161% increase from the same period last year. However, due to the decline in coin prices, revenue decreased by 36% from the previous quarter.

Strategic Acquisitions of Bitstamp and Pluto Capital

In June, Robinhood signed an agreement to acquire the well-established cryptocurrency exchange Bitstamp, Ltd. Bitstamp is headquartered in London and holds more than 50 valid licenses and registrations globally, with offices in Luxembourg, the UK, Slovenia, Singapore, and the US. This acquisition will attract customers from the EU, UK, US, and Asia to Robinhood.

Additionally, in July, Robinhood acquired the AI-driven investment research platform Pluto Capital Inc., enhancing user data analysis and providing personalized investment strategies based on individual user needs and goals, as well as real-time monitoring and optimization of investment portfolios.

$1 Billion Stock Buyback

In May, Robinhood's board approved a $1 billion stock buyback plan, which began execution in July.

Robinhood's stock price rose over 2% after hours, up 34% year-to-date.