Revenue growth faces a profitability test

According to the accompanying S&P Global estimates, third-quarter revenue is expected to reach $1.431 billion, up approximately 9.4% sequentially. EPS is forecast at $0.555, compared with $0.620 in the second quarter. This combination suggests investors will scrutinize operating expenses and revenue mix alongside headline growth.

Fourth-quarter estimates point to further improvement, with revenue of $1.528 billion and EPS of $0.627. Management’s commentary on trading activity, customer deposits and spending will help determine whether those expectations remain achievable.

Diversification supports the revenue recovery

Robinhood’s revenue trajectory illustrates both its sensitivity to trading…