Robinhood’s Q2 Earnings: What To Expect

Robinhood is reporting earnings for the second quarter this week, its first release as a publicly-traded company; here’s what to expect. 

The controversial trading app is set to release results for the second quarter this week and shareholders are eagerly awaiting to see the report from the newly-listed company. 

Robinhood (NASDAQ: HOOD) has shook up the stock investing world by offering commission free trading which has attracted new investors to the app. However, the company has also been subject to criticism centered around how it offers young, inexperienced investors the opportunity to leverage huge amounts of money which can lead to mountains of debt. 

While Robinhood was one of the most hotly-anticipated IPOs of 2021 after it made headlines when it halted the trading of meme stocks, the stock debut was very disappointing. On its first day of trading, the stock finished up relatively flat, but is now up a whopping 34% since then.

The stock is receiving a lot of hype at the moment as people begin to discuss the company on Reddit and other social media channels.

To ensure it is in a healthy financial state, investors will want to see proof that its numbers are growing in Robinhood’s earnings report this week. Here is what to expect. 

When is Robinhood’s earnings date?

Robinhood will report its Q2 earnings report on Wednesday, 18 August, at 5:00 PM Eastern Time.

How can I listen to Robinhood’s earnings call? 

To listen to the earnings call and to access the transcript, simply visit Robinhood’s Investor Relations page on its website or access the report here.

What to expect from Robinhood’s earnings 

Analysts are expecting Robinhood to post adjusted net income of $73.9 million, or $0.15 cents per share, on $521.8 million in revenue. 

Robinhood has already stated that it has added 22.5 million funded accounts in Q2, so this won’t come as a surprise to investors. If these figures are correct it would mean it is adding new members much faster than rival brokers. 

Before its IPO, Robinhood posted a loss of $1.4 billion for Q1. That’s a pretty big number so investors will definitely want to see a reduction in losses or else a clear justification about where the money is going. 

The question of whether Robinhood is a meme stock is also something that is worrying investors. After soaring 87% in just two days in early August, rising to over $70 per share, many believed it would join other meme stocks GameStop (NYSE: GME) and AMC Entertainment (NYSE: AMC). However, the stock has settled a little since then and is currently hovering around the $50 mark. 

Robinhood should be able to alleviate some of these concerns by reporting strong earnings results on Wednesday to help prove to Wall Street analysts that it is not just another social media hyped stock. 

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