Robinhood Markets, Inc. (NASDAQ: HOOD) announced financial results for the first quarter of 2025, which ended March 31, 2025.
Vlad Tenev, Chair and CEO of Robinhood said:
“This quarter, we significantly accelerated product innovation across our key initiatives, highlighted by the announcement of Robinhood Strategies, Banking, and Cortex. Customers have clearly responded — demonstrated by record-breaking net deposits, Robinhood Gold subscriptions, and options volume, as well as robust year-over-year growth in trading across all asset classes.”
Jason Warnick, Chief Financial Officer of Robinhood said:
“We started the year off strong, driving market share gains, closing the acquisition of TradePMR, and remaining disciplined on expenses. As a result, in Q1 we grew revenues by 50 percent year-over-year and EPS by over 100 percent. It’s also great to see strong customer engagement to start Q2. Additionally, we continue to return capital to shareholders and increased our share repurchase authorization by $500 million to $1.5 billion, reflecting management and the board’s confidence in our financial strength and future growth prospects.”
First Quarter Results:
- Total net revenues increased 50% year-over-year to $927 million.
- Transaction-based revenues increased 77% year-over-year to $583 million, primarily driven by cryptocurrencies revenue of $252 million, up 100%, options revenue of $240 million, up 56%, and equities revenue of $56 million, up 44%.
- Net interest revenues increased 14% year-over-year to $290 million, primarily driven by growth in interest-earning assets and securities lending activity, partially offset by lower short-term interest rates.
- Other revenues increased 54% year-over-year to $54 million, primarily due to increased Robinhood Gold subscribers.
- Net income increased 114% year-over-year to $336 million.
- Diluted earnings per share (EPS) increased 106% year-over-year to $0.37.
- Total operating expenses increased 21% year-over-year to $557 million.
- Adjusted Operating Expenses and Share-Based Compensation (SBC) (non-GAAP) increased 16% year-over-year to $533 million, which includes costs related to TradePMR.
- Adjusted EBITDA (non-GAAP) increased 90% year-over-year to $470 million.
- Funded Customers increased by 1.9 million, or 8%, year-over-year to 25.8 million.
- Investment Accounts increased by 2.6 million, or 11%, year-over-year to 27.0 million.
- Total Platform Assets1 increased 70% year-over-year to $221 billion, primarily driven by continued Net Deposits and the acquisition of TradePMR.
- Net Deposits were $18.0 billion, an annualized growth rate of 37% relative to Total Platform Assets at the end of Q4 2024. Over the past twelve months, Net Deposits were $57.3 billion, a growth rate of 44% relative to Total Platform Assets at the end of Q1 2024.
- Average Revenue Per User (ARPU) increased 39% year-over-year to $145.
- Robinhood Gold Subscribers increased by 1.5 million, or 90%, year-over-year to 3.2 million.
- Cash and cash equivalents totaled $4.4 billion compared with $4.7 billion at the end of Q1 2024.
- Share repurchases were $322 million, representing 7.2 million shares of our Class A common stock at an average price per share of $44.87. This more than offset the 2.0 million shares of Class A common stock issued in connection with the acquisition of TradePMR.
Analyst Comments on Robinhood’s Q1 2025 Financial Results:
Dan Dolev, Mizuho Analyst:
Dolev expressed enthusiasm for Robinhood’s performance, stating:
“They’re going after the Schwabs and Interactive Brokers of the world.”
Citizens JMP Analyst
The analyst noted:
“In-line quarter but core growth trends highlight tremendous momentum at Robinhood, much of which is just scratching the surface.”
They emphasized that Robinhood’s monthly metrics and key performance indicators provide transparency into its ongoing growth trajectory.
General Analyst Sentiment from Reuters
Analysts noted that Robinhood’s first-quarter profit more than doubled and beat estimates, driven by a surge in trading volumes as clients hedged positions in volatile markets.
There’s now a consensus view that robust trading activity, particularly in cryptocurrencies (with $252 million in crypto revenue), fueled the strong results.
Yahoo Finance Analyst Expectations
Analysts expected Robinhood’s revenue to grow 48.2% year-over-year to $915.7 million, with adjusted earnings of $0.37 per share.
The update noted that analysts had “generally reconfirmed their estimates over the last 30 days,” suggesting confidence in Robinhood’s trajectory heading into the earnings release.