EARNINGS RESULTS · Q2 2026

Robinhood Q2 2026: Revenue Up 32.25%, Operating Margin 43.88%

Results for the quarter ended 2026-06-30 bring the business drivers and cash after investment into focus. Quarterly free cash flow was $0.71 bn. The dated assessment on 2026-10-08 was avoid at a reference price of $109.51.

Robinhood · HOODPublished October 8, 2026Quarter ended June 30, 2026

Q2 2026: What the Quarter Delivered

Revenue: $1.31 bn
Revenue growth YoY: 32.3%
Operating income: $0.57 bn
Operating margin: 43.9%
Diluted EPS, GAAP: $0.62

Robinhood reported $1.31 bn of revenue in Q2 2026. Revenue rose 32.25% from the comparable prior-year quarter. Operating profit was $0.57 bn, with an operating margin of 43.88%. Reported diluted EPS was $0.62.

The latest reported quarter showed a strong rebound in revenue and operating profit from the preceding quarter. Revenue also rose against the comparable prior-year period, confirming that the improvement was not simply a sequential recovery.

How Revenue Reached Operating Profit

The quarter's revenue and operating result imply an operating margin of 43.88%: $43.88 of operating profit for every $100 of revenue, before interest and tax.

Robinhood's substantial operating profit shows that the platform can retain meaningful revenue after paying operating expenses.

What the Reported Earnings Include

Other non-operating income: —
GAAP net income: $0.57 bn
Diluted weighted-average shares: 0.91 bn shares

Q2 2026 GAAP net income was $0.57 bn.

Reported net income was close to operating income in the latest quarter, but that does not establish a normal recurring tax burden or a reliable non-operating contribution. Reported earnings per share include items outside the operating business, and consolidated profit differs from profit attributable to common shareholders.

Cash Left After Investment

Operating cash flow: $0.25 bn
Cash flow after reported cash capital purchases: $0.22 bn
Quarterly operating cash flow: $0.72 bn
Cash purchases of other productive assets: $0.01 bn
Quarterly OCF less other productive-asset cash purchases: $0.71 bn

In Q2 2026, operating cash flow of $0.72 bn less cash capital expenditure of $0.01 bn left $0.71 bn of free cash flow. Operations funded cash investment and left cash after that spending.

Across the trailing period, however, those cash measures were weak relative to operating profit.

The Verdict Recorded on 2026-10-08

Verdict Invest recorded avoid on 2026-10-08, using a reference price of $109.51 dated 2026-10-07. This assessment relates to the Q2 2026 results, with a 12-month horizon and stated validity through 2026-11-07.

Confirmation to watch: Broader adoption of Gold, retirement accounts and advisory services could deepen customer relationships and support less transaction-dependent revenue.
Confirmation to watch: TradePMR and Bitstamp could expand Robinhood's advisory custody and international cryptocurrency businesses.
Confirmation to watch: Sustained customer engagement could lift revenue while spreading platform costs across a larger business.
Risk to this assessment: Trading weakness and narrower interest spreads overwhelm growth from newer services.
Risk to this assessment: Restrictions on payment for order flow or cryptocurrency operations impair revenue economics.
Risk to this assessment: Customer-related funding needs, operational failures or persistent dilution prevent operating growth from translating into shareholder value.