US online brokerage leader Robinhood delivered an impressive set of results in its second-quarter earnings report. Revenue and profits beat Wall Street expectations, but revenue from its cryptocurrency business fell by nearly 40%, dragging the stock price down in after-hours trading. At the same time, Robinhood is moving into the blockchain and AI space—can “tokenized U.S. stocks” and “AI agent trading” become the next growth engine?

US online brokerage Robinhood (HOOD) released strong second-quarter earnings, with all key metrics exceeding analysts’ expectations. However, after the stock price fell 3.1% during Wednesday’s regular trading session, it continued to drop by about 4% in after-hours trading, suggesting investors remain cautious about the report.

From the financials, Robinhood’s second-quarter adjusted earnings per share (EPS) came in at $0.62, beating analysts’ prior expectations of $0.43. Meanwhile, quarterly revenue jumped 32% year over year, reaching a record high of $1.31 billion, slightly surpassing the market expectation of $1.29 billion.

The strong performance in the earnings report is mainly attributable to Robinhood’s continued expansion of a diversified product lineup, which successfully offset the slowdown in cryptocurrency trading. Robinhood’s second-quarter cryptocurrency business revenue fell 38% year over year, dropping from $160 million to $100 million; however, buoyed by active trading in options, stocks, and prediction markets, overall fee revenue still received solid support.

In a statement, Robinhood Chairman and CEO Vlad Tenev emphasized: “Whether it’s Robinhood Chain, Robinhood Ventures, or Trump Accounts, the pace of development of all our products is centered on the same goal: to make everyone a holder of assets.”

The second quarter was one of Robinhood’s most aggressive seasons in recent years for launching new products. The company officially rolled out its own blockchain network, Robinhood Chain, being the first to provide tokenized U.S. stocks to eligible European users—an important strategic move to bring traditional financial assets onto the blockchain.

Since its launch, Robinhood Chain has seen explosive growth in network activity. Daily on-chain decentralized exchange (DEX) trading volume has reached the scale of hundreds of millions of dollars. Among them, tokenized stocks such as GameStop, Nvidia, and SpaceX have quickly become some of the most actively traded real-world assets (RWAs) on the network.

Even though on-chain activity is still largely dominated by meme coins and stablecoins, over the past few weeks the trading volume of tokenized stocks has shown a steady expansion trend.

In addition, Robinhood also released a new AI tool suite called “Agentic Trading.” This innovative feature lets users connect third-party AI assistants to their personal brokerage accounts. Not only can it monitor market activity around the clock, it can also automatically execute trades based on instructions set by the user.

Robinhood emphasized that the original design intent of this product is to ensure that users still have absolute control over their funds while enabling automated investing. It does so by setting up separate trading accounts, imposing spending limits, and offering manual approval options.

It’s worth noting that Robinhood’s earnings report also serves as a barometer for the U.S.’s largest cryptocurrency exchange, Coinbase (COIN), by giving the market a glimpse into what to expect from Coinbase’s report.

Although the business models of these two companies are not exactly the same, both heavily rely on the trading activity of retail investors and overall market sentiment in the crypto space. This means that Robinhood’s trading trends are often seen as leading indicators of Coinbase’s performance.

After data showed a decline in revenue from Robinhood’s cryptocurrency business, analysts are closely watching: with a rebound in crypto prices and trading volumes in the second quarter, can Coinbase deliver stronger trading revenue, or will it face similar headwinds from retail traders pulling back?

“Strong Q2 earnings can’t beat the crypto market’s cooldown! Robinhood’s crypto revenue plunges, and the stock price falls 4% after hours” was first published on (Blockcast).