Robinhood Beat Forecasts as Coinbase Stumbled in Q2

Robinhood posted sharp year-over-year gains across crypto and options trading, while Coinbase missed Wall Street estimates. Strategy shocked with a $14B profit surge, giving crypto investors a mixed but revealing look at how Q2 shaped the broader market landscape.

Robinhood Posted Strong Q2 Crypto Revenue Growth

Robinhood, Coinbase, and Strategy released Q2 earnings on Aug. 2, revealing stark differences in performance across the crypto sector. Robinhood posted a 98 percent year-over-year increase in crypto trading revenue, while Coinbase missed Wall Street targets and reported lower subscription earnings. Strategy shocked markets with a $14 billion operating profit, reversing heavy losses from last year.

Robinhood generated $989 million in total net revenue during Q2 2025. Crypto transactions contributed $160 million, nearly doubling from the previous year. The firm also reported a 105 percent rise in net income to $386 million and 100 percent earnings-per-share growth. The platform’s total assets reached $279 billion, up 99 percent year-over-year.

Robinhood’s adjusted EBITDA stood at $549 million, marking an 82 percent jump from Q2 2024. The firm saw 1.5 million new Robinhood Gold subscribers, reaching a total of 3.5 million. Net deposits climbed to $13.8 billion for the quarter, with a trailing 12-month deposit growth rate of 41 percent.

Scott Melker wrote on X that “Robinhood is winning on innovation and retail fronts.” He added that the platform was carving a clear lane for consumer-focused offerings, unlike Coinbase, which remains focused on institutions.

Coinbase Missed Wall Street Revenue Targets

Coinbase reported $1.497 billion in Q2 revenue, falling short of analyst expectations of $1.594 billion. Quarter-over-quarter, that marked a 26 percent decline. The company’s net income came in at $1.4 billion, boosted by mark-to-market gains, but adjusted EBITDA dropped to $512 million from $930 million in Q1.

Subscription and services revenue totaled $656 million, down from $698 million in Q1. Coinbase’s institutional custody assets grew to $245 billion, up from $212 billion in the previous quarter. Still, the company failed to impress Wall Street with its lower adjusted net income of $33 million, compared to $527 million in Q1.

Coinbase also confirmed a security breach, which may cost between $180 million and $400 million in future quarters. That disclosure was absent from the shareholder letter but appeared in the SEC filing. Coinbase stock slipped in after-hours trading following the miss.

Melker pointed out that “Robinhood is outmaneuvering Coinbase on retail, but still dominates on custody.” He cited that Coinbase holds 80 percent of ETF crypto custody and serves 8 out of the top 10 public firms with Bitcoin exposure.

Strategy Flipped from Loss to $14B Profit

Strategy, the crypto infrastructure and investment firm, delivered the biggest surprise of the week. It posted $14.03 billion in operating income, up from a $200 million loss in Q2 2024. The firm recorded a $32.52 earnings-per-share gain, swinging from a Q1 loss of $16.49. EPS beat forecasts by over 35,000 percent.

Revenue rose to $114.49 million, up 3.1 percent quarter-over-quarter. The company’s gross margin landed at 68.8 percent, slightly lower than the 72.2 percent margin in Q2 2024. Strategy ended the quarter with $50.1 million in cash, a $12 million increase from Dec. 2024.

CEO Michael Saylor noted that the firm launched a new security called STRC, a variable-rate preferred stock designed to provide yield and stability to institutional investors. He stated in a letter that “STRC expands our capital markets platform” and “extends the reach of the Bitcoin economy.”

Strategy announced a $4.2 billion at-the-market (ATM) offering for STRC in July. Saylor confirmed the funds will go toward purchasing more Bitcoin.

Coinbase Faces Headwinds While Robinhood Gains Steam

Coinbase appeared caught in the middle of declining market activity and rising competition. Despite holding over 100,000 ETH in reserves, the firm reported just $1.8 billion in crypto portfolio holdings, only slightly up from $1.3 billion in Q1. Its USD resources dropped to $9.3 billion, down from $9.9 billion.

By comparison, Robinhood posted broader gains across product lines. Options trading brought in $265 million, and equities generated $66 million, both up over 60 percent year-over-year. Net interest revenue rose 25 percent to $357 million, while total operating expenses climbed only 12 percent.

The divergence in results highlighted a shift in investor sentiment. Coinbase leaned heavily on its institutional presence and crypto ETF custody, but failed to defend market share in retail. Meanwhile, Robinhood’s dual strength in crypto and traditional products appeared to position it as a retail favorite.

Melker said Robinhood’s momentum made it a likely candidate for S&P 500 inclusion in the coming quarters. He noted that “Coinbase has a harder road ahead” despite its long-term positioning.

Earnings Set the Stage for Q3 Repricing

With Q2 earnings now public, investors turned their focus to how firms positioned themselves for the second half of the year. Robinhood’s deposit growth and subscriber base provided a strong foundation for continued retail expansion. Strategy’s Bitcoin accumulation and STRC launch reinforced bullish expectations for institutional capital inflows.

Coinbase faced pressure to restore revenue growth and recover from its cybersecurity incident. Its ability to retain ETF custody dominance and boost service revenue may define its Q3 performance. Any further missteps could erode investor confidence as Robinhood and Strategy consolidate gains.

The crypto market entered August with mixed sentiment, but traders will watch closely how each of the big three responds. The next round of earnings and on-chain data will reveal whether Coinbase regains footing or if Robinhood and Strategy pull further ahead.