Robinhood Markets, Inc. (NASDAQ:HOOD) reported record quarterly revenue on July 29, 2026, and the stock faded anyway. Second-quarter revenue hit an all-time high of $1.31 billion, up 32%. Its EPS reached $0.62, surpassing the $0.41 consensus while generating a net income of $573 million – a 48% increase. However, the market is fixed on one red number instead – the crypto revenue that fell 38% to $100 million. Still pricing it as a crypto-beta stock, the traders sold the crypto miss and turned away from the line that changed the company.
Robinhood Markets, Inc. (HOOD): Jim Cramer Shares How His Wife Advised CEO Vlad Tenev
The Line Everyone Skipped
Prediction markets made $156 million in revenue across 13.6 billion traded event contracts. Both revenue and contract volume increased more than tenfold year over year. For Robinhood, event contracts became its fastest-growing product launch ever. The revenue surpassed the company’s entire cryptocurrency segment for the first time. Event contracts, centered on elections, sports, and economic data, give Robinhood another transaction-revenue stream that is not directly dependent on stock or crypto bull markets.
Why the Crypto Fade Is a Category Error
In an urge to sell crypto weakness, the traders are misreading Robinhood’s position. The company’s total transaction revenue went up by 44%, reaching $776 million, with options revenue rising by 29% to $342 million. Meanwhile, cryptocurrency trading volume is declining and growing non-organic, with more than half of volume now flowing through the acquired Bitstamp exchange rather than through in-app activity. On the other hand, the engagement base continues to grow with 28.4 million funded accounts, a record 4.8 million Gold subscribers, and $22 billion in net deposits. This diversified platform is being misvalued by the market based on its weakest segment.
The Bear Case: Rich, and Regulated
The stock is not cheap, and hence caution is necessary. HOOD trades near 44 times forward earnings and 17 times sales. Its forward earnings multiple compares…
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