Robinhood shares fell around 3% in initial after hours trading Wednesday despite the brokerage reporting record second quarter revenue and earnings that exceeded Wall Street expectations.

The company generated $1.31 billion in total net revenue, an increase of 32% from $989 million during the same quarter last year. The result came in above the approximately $1.26 billion expected by analysts.

Diluted earnings per share rose 48% to $0.62 from $0.42 a year earlier, compared with Wall Street expectations of around $0.41. Net income increased 48% to $573 million.

However, Robinhood said its quarterly results included $129 million in gains primarily related to the deconsolidation of Robinhood Ventures Fund I. Those gains contributed approximately $0.14 to diluted earnings per share.

Transaction based revenue increased 44% to $776 million as growth in equities, options, and event contracts offset weaker cryptocurrency activity.

Revenue from event contracts increased more than tenfold to $156 million, while options revenue climbed 29% to $342 million. Equities revenue nearly doubled, rising 95% to $129 million.

Crypto trading revenue moved in the opposite direction, declining 38% to $100 million. Crypto trading volume through the Robinhood app fell 35% to $18 billion, while Bitstamp contributed an additional $22 billion in volume.

Robinhood reported record activity across equities, options, and event contracts. Equity trading volume increased 85% to $956 billion, while options contracts traded rose 50% to 774 million.

Net interest revenue increased 9% to $389 million as growth in interest earning assets offset lower short term rates and weaker securities lending activity.

Other revenue climbed 54% to $143 million, supported by Robinhood Gold subscriptions and revenue from services connected to Trump Accounts.

Total operating expenses increased 33% to $734 million. Robinhood attributed the increase to marketing, growth investments, restructuring charges connected to its June workforce reduction, and expenses related to newer businesses including Rothera.

The company lowered and narrowed its 2026 outlook for adjusted operating expenses and share based compensation to between $2.675 billion and $2.775 billion. Its previous forecast ranged from $2.7 billion to $2.825 billion.

Robinhood recorded $21.7 billion in net deposits during the quarter, representing an annualized growth rate of 28%. Total platform assets increased 32% to $369 billion.

Funded customers increased 7% to 28.4 million, while Robinhood Gold subscribers rose 39% to a record 4.8 million. Average revenue per user increased 24% to $187.

The company also repurchased $414 million of its shares during the quarter at an average price of approximately $94 per share.