Robinhood Markets Q2 Earnings: What to Expect

Robinhood Markets is set to release its second-quarter earnings report on Wednesday after the bell. Here are the key details to watch out for.

Expected Loss

Analysts are predicting that the online brokerage firm will report a loss of $19 million, or one cent per share, compared with a loss of $295 million, or 34 cents per share, during the same period last year.

Anticipated Revenue Growth

FactSet data suggests that the company's revenue is expected to rise to $473 million, up from $318 million in the previous year's second quarter.

Key Metrics to Watch

Users

Investors will closely monitor the company's monthly active user count, which experienced declines last fall but saw a sequential increase of approximately 400,000 users to reach 11.8 million in the first quarter.

Interest Revenue

The net interest revenue generated by the company will be closely scrutinized after it nearly quadrupled in the first quarter. This impressive growth was driven by an increase in interest earning assets, higher securities lending activity, and elevated short-term interest rates.

24-Hour Market

Market participants are eager to hear an update from Robinhood's management on the performance of round-the-clock trading for selected stocks and exchange-traded funds. This feature was launched in May and has garnered significant attention.

SEC Rule

Investors will be on the lookout for any commentary from the company regarding a proposed rule by the U.S. Securities and Exchange Commission. This rule aims to impose regulatory guardrails on how retail investment firms utilize advanced analytics to encourage customers to trade.