Robinhood Reports 6% Increase in Q2 Total Net Revenues

The American financial services firm, Robinhood posted its financial metrics for the second quarter ended June 30, 2022, reporting total net revenue of $318 million, up 6 percent from last quarter.

According to the company, its transaction-based revenues came in at $202 million in the period, compared to $218 million generated in the first quarter of the year. The options and equities transaction value for the quarter decreased 11 percent and 19 percent respectively, while cryptocurrency trading increased 7% sequentially to $58 million.

The broker closed the quarter with a net loss of $295 million or $0.34 per diluted share, compared with net loss of $392 million, or $0.45 per diluted share in the first quarter of 2022. The adjusted EBITDA for the quarter came in at a negative $80 million, a sequential improvement of $63 million.

"In the second quarter we continued to make strong progress on our roadmap and delivered products that will help our customers navigate an environment marked by higher interest rates and rising inflation,"said Vlad Tenev, CEO and Co-Founder of Robinhood Markets."With the introduction of Stock Lending, extended hours for trading, improved options offerings, new coins, and the announcement of our non-custodial wallet, we've built an even better and more robust customer experience in the first half of the year and look forward to bringing our customers additional products and services throughout the remainder of 2022."

"This quarter saw Robinhood make important strides on both our business and financial goals,"said Jason Warnick, Chief Financial Officer of Robinhood Markets."In the second quarter, we were encouraged to see our customers continue to engage with us through the volatile environment. We saw Net Deposits of $5.2 billion, representing a 22% annualized growth rate. Revenues in the quarter were up 6% and we managed our costs down 5%, leading to a $97 million sequential improvement in net loss and a $63 million improvement in Adjusted EBITDA. While the decision to make an additional reduction in force was a difficult one, we believe that it was the right decision and positions us to deliver on our mission of democratizing finance for all."