Robinhood reports surge in Q2 revenue, boosted by equities and crypto trading

obinhood reported a surge in second-quarter revenue, boosted by strong trading in equities and cryptocurrencies, sending shares up 2% after the bell.

Robinhood's second-quarter revenue surged on Wednesday, driven by a surge in trading in equities and cryptocurrencies, sending shares up 2% in extended trading.

The online commission-free brokerage reported net revenue of $682 million in the three months ended June 30, compared with $486 million in the year-ago quarter, according to a statement.

The trading app, known for its popularity with mom-and-pop investors, saw a surge in trading volumes as meme-stock influencer Keith Gill returned to social media and sparked renewed interest in the heavily shorted shares of videogame retailer GameStop.

Its equity trading volumes surged 82% in April and 76% in May, compared with a year earlier.

Moreover, the crypto markets had a stellar first half of the year, led by gains in bitcoin, the largest and most recognized token globally.

This led to a 238% surge in crypto trading volumes in May, while April saw a 173% jump.

Sentiment has improved significantly since the U.S. Securities and Exchange Commission approved an exchange-traded fund to track bitcoin's spot price in January, and more recently gave the greenlight to a similar product for ether.

As a result, Robinhood's transaction-based revenues surged 69% in the quarter to $327 million.

(Reporting by Manya Saini in Bengaluru; Editing by Anil D’Silva)

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