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(Reuters) – Robinhood Markets Inc (NASDAQ:HOOD) reported higher second-quarter revenue on Wednesday as interest rates continued to buoy the online brokerage’s interest income, achieving profitability for the first time as a public company.
Shares of the company, which was at the center of 2021’s retail trading frenzy, were last down 3% in extended trading.
Net interest revenue soared 243% to $442 million in the second quarter compared to a year earlier, as the brokerage’s margin investing business benefited from the U.S. central bank’s monetary policy tightening campaign to combat decades-high inflation.
Taking some of the shine off gains from higher rates, retail traders—who had used Robinhood’s platform through most of 2021 to pump money into so-called meme stocks—pulled back amid volatile market conditions. As a result, transaction-based revenue declined 5% in the second quarter.
