Brokerage firm Robinhood Markets has reported its financial results for the second quarter of 2023.
The broker's total net revenues for the period increased 10% to $486 million, driven by higher indirect revenue.
The report showed that transaction-based revenue fell 7% to $193 million in the second quarter.
The breakdown showed the following:
- Options declined 5% to $127 million.
- Cryptocurrencies declined 18% to $31 million,
- Equities decreased 7% to $25 million.
Net interest revenue increased 13% to $234 million, primarily due to an increase in interest-earning assets.
Robinhood Markets reported a net income of $25 million, or $0.03 of earnings per share. In the first quarter, the brokerage reported a loss of $511 million, or $0.57 earnings per share.
Operating expenses decreased from $484 million to $466 million in the second quarter, primarily due to the absence of a Founder's Award Cancellation in the first quarter.
Adjusted EBITDA increased 31% to $151 million.
The broker said monthly active users (MAUs) decreased by 1.0 million to 10.8 million during the period.
Additionally, Robinhood Markets' assets under custody grew 13% to $89 billion, primarily due to higher equity valuations and net deposits.
"In Q2, we reached a significant milestone by achieving GAAP profitability for the first time as a public company. Guided by our bold product roadmap, we're continuing to innovate for our customers, grow assets, gain market share, and change the industry for the better," Vlad Tenev, CEO and Co-Founder of Robinhood Markets, said in the report.
The broker expects 2023 GAAP operating expenses to be in the range of $2.330 billion to $2.410 billion and share-based compensation, including the Founder's Award Cancellation in 2021, to be in the range of $900 million to $940 million.
"With five consecutive quarters of revenue and Adjusted EBITDA growth, we're continuing to drive efficiency across our operations while investing in the customer experience. Looking ahead, we remain focused on delivering for customers and growing our business," said Jason Warnick, CFO of Robinhood Markets.
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