Morning Minute is a daily newsletter written by Tyler Warner . The analysis and opinions expressed are his own and do not necessarily reflect those of Decrypt.
Robinhood reported the best quarter in its history on Wednesday. They recorded net revenue of $1.31 billion, up 32% from a year ago, and diluted EPS of $0.62 (vs $0.41 expected). Net income hit $573 million (up 48%), total platform assets climbed to $369 billion, and net deposits set a record near $21.7 billion. It was a blowout on almost every line.
Arguably, the most interesting update came from their prediction market business. Robinhood’s event contracts generated $156 million, up more than tenfold year over year, and for the first time, it passed both crypto at $100 million and equities at $129 million. Crypto is going the wrong way, with digital-asset revenue falling 38% from $160 million a year ago as retail trading volumes kept cooling. Options, up 29% to $342 million, and equities, up 95%, did the heavy lifting instead, along with Trump Account fees that helped pull other revenue up 54%. CEO Vlad Tenev framed the whole company as 13 separate business lines each generating over $100 million annualized, all tied to one goal of “making everyone an owner.”
And yes, Robinhood Chain was covered. On the call, Tenev said the chain has seen “great initial traction,” with its DEXs processing more than $12 billion in volume and the network becoming the fastest ever to hit 100 million transactions, with TVL around $325 million. He even showed a demo of his phone browsing through the chain with CASHCAT shown explicitly, leading to a quick 40% surge in the chain’s leading memecoin.
As for the market reaction, HOOD stock did sell off on the day and didn’t recover much after hours. It seems that price action is more tied to the hawkish FOMC than Robinhood’s earnings beat specifically. But zooming out, the business feels as strong as ever. They’ve got 13 business lines generating $100M+ in revenue and multiple major lanes for growth. It’s quite the bullish setup…