Robinhood Markets (NASDAQ:HOOD) used its annual summit in recent weeks to announce more than 15 new products. They include AI trading agents, plans for weekend stock trading, and contracts tied to key company metrics. That pace of launches is why many investors no longer see it as a simple trading app.
But the second quarter of 2026 shows how much of its growth still comes from trading. Robinhood sells brokerage, crypto, retirement accounts, a credit card and banking to 28.4 million funded customers. Thirteen of its business lines now bring in at least $100 million in annualized revenue. Yet transaction revenue, the part tied to trading activity, still grew fastest. The wider business is real, but the stock still rides on trading staying busy. Investors who want more fintech stocks can find Robinhood in our recent list of 9 Best Bitcoin Stocks to Buy Now.
Customers Now Use More Than the Trading App
Robinhood’s edge is a customer base that keeps adding products. Funded customers grew 7% year over year, while Gold subscribers grew 39%, so paying subscribers are growing far faster than the customer count. Subscriptions and cards earn fees without waiting for a customer to place a trade.
That shows up in other revenues, which include Gold subscriptions and Trump Account services and grew 54% to $143 million. Over the longer term, revenue grew about 36.3% a year over the past five years. The operating margin over the past 12 months was about 44.2%, so a large share of each revenue dollar turns into operating profit.
Trading Still Drives the Fastest Growth
Total revenue rose 32% to a record $1.31 billion in the second quarter, but transaction revenue grew faster, up 44% to $776 million. Event contracts brought in $156 million, up more than tenfold, while crypto revenue fell 38% to $100 million. So crypto, the business that made Robinhood famous, shrank while event contracts grew. If you’re interested in crypto exposure, we recently compiled a report on 7 Best Crypto Exchange Stocks to Buy Following Bitcoin’s Recovery.
Event contracts carry a risk of their own. Robinhood’s earnings release says regulatory enforcement actions, litigation or changes in law could stop it from offering them. Weekend trading may also help less than it sounds, because equities brought in $129 million, which is still below the $342 million from options.
Profit growth also looks better than it is, because diluted earnings per share rose 48% but included $0.14 from a one-time gain on deconsolidating a Robinhood Ventures fund. So underlying earnings grew more slowly than the headline.
Investors Are Pricing Robinhood on Its Wider Mix
The stock trades at about 38.8 times forward earnings. That measures how many dollars investors pay for each dollar of expected profit over the next year, based on adjusted estimates. The sector median is near 10.9, so Robinhood sits about 256% above its peers, yet it is close to its own five-year average of 37.2.
That means the multiple matches the stock’s own history but sits far above the sector, so investors already give Robinhood credit for the wider mix of businesses. For someone holding the shares, the price assumes the newer lines keep growing.
A slightly larger group of professional investors now holds the stock. A total of 87 hedge funds owned it at the end of the second quarter of 2026, up from 84 in the first quarter. Those counts come from funds’ regulatory filings, so they show how many large funds chose to own the shares, and the small rise suggests interest is firming rather than surging.
Fewer investors are betting against it, since about 5.12% of shares outstanding are sold short. That means traders borrowed those shares and sold them, hoping to buy them back cheaper, so it is a minority view that still shows some doubt about the price. Investors who want more fast-growth ideas can see our ranking of 10 Best Fast Growth Stocks to Buy According to Hedge Funds.
So the answer to the headline depends on what comes next week. When Robinhood reports its third quarter, the figure to watch is other revenues, which grew 54% to $143 million last quarter. If they keep outgrowing trading, the 13 businesses can carry the stock when trading cools.
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This article is originally published at Insider Monkey.
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