Robinhood has reported its strongest second quarter on record, driven by higher trading activity, rising customer deposits, and steady subscription growth. The financial services company saw total net revenue reach $1.31 billion for the quarter ended June 30, a 32% increase from the same period last year and 23% higher than the first quarter. Net income climbed 48% year over year to $573 million, while diluted earnings per share increased to $0.62.
The company's revenue growth was fueled by a surge in transaction revenue, which rose 44% to $776 million. Options trading remained the largest revenue source, generating $342 million, while equities revenue nearly doubled to $129 million. Event contracts also saw significant growth, producing $156 million in revenue, more than ten times the amount from the previous year. However, cryptocurrency trading revenue fell 38% to $100 million.
Robinhood's business expansion beyond trading also contributed to its growth. Net interest revenue increased 9% to $389 million, driven by growing customer assets, although lower interest rates and softer securities lending activity tempered these gains. Other revenue climbed 54% to $143 million, boosted by growth in Trump Account service revenue and Robinhood Gold subscriptions.
Customers continued to bring money onto the platform at a rapid pace, with net deposits reaching a record $21.7 billion during the quarter. Total platform assets climbed 32% to $369 billion, while funded customers increased to 28.4 million and investment accounts rose to 29.9 million. Robinhood Gold subscriptions also reached a record 4.8 million.
The company's operating expenses increased 33% to $734 million, reflecting higher marketing costs, restructuring charges, and investments in new business lines. However, adjusted EBITDA climbed 35% to $741 million, lifting the adjusted EBITDA margin to 57%. Looking ahead, Robinhood has narrowed its full-year expense outlook, expecting adjusted operating expenses and share-based compensation of between $2.675 billion and $2.775 billion.
According to company executives, Robinhood's strong performance is a result of its focused strategy on making everyone an owner. The company's product velocity is aimed at achieving this goal, with a range of initiatives, including the Robinhood Chain, Robinhood Ventures, and Trump Accounts. The CEO emphasized the importance of broad ownership in creating a free, stable, and prosperous society.
