Robinhood Markets Inc - Class A
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +6.74%.
Did HOOD Beat Earnings? Q1 2025 Results
Robinhood kicked off 2025 with a clear-cut beat on both the top and bottom lines, reporting first-quarter revenue of $927.00 million against a consensus estimate of $917.16 million, a 1.07% beat, while earnings per share of $0.37 edged past the $0.37 estimate by 0.19%. The headline numbers were powered by an explosive surge in transaction-based revenues, which climbed 77% year-over-year to $583.00 million, with cryptocurrency trading alone doubling to $252.00 million and options revenue rising 56% to $240.00 million. Net income more than doubled to $336.00 million, lifting the net margin to 36% from 25% a year earlier. The quarter also marked meaningful strategic progress, as <a href="https://247wallst.com/ai-portfolio/2025/04/02/can-robinhoods-hood-new-wealth-management-services-lead-to-a-winning-2025/">Robinhood's expanding wealth management push</a> took shape with the TradePMR acquisition closing in February and new advisory, banking, and AI products unveiled at its Gold keynote. Looking ahead, the company raised its full-year 2025 adjusted operating expense outlook to $2.08 billion to $2.19 billion, attributing the increase entirely to roughly $85.00 million in TradePMR-related costs, while noting strong customer engagement early in the second quarter.
- Cryptocurrency revenue doubled year-over-year to $252 million
- Options revenue grew 56% year-over-year to $240 million with record 500 million contracts traded
- Record net deposits of $18.0 billion, a 37% annualized growth rate
- Robinhood Gold subscribers surged 90% year-over-year to a record 3.2 million
- Equity notional trading volumes increased 84% to $413 billion
- Margin book more than doubled to a record $8.8 billion
- ARPU increased 39% year-over-year to $145
“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.”
Robinhood CEO, on the earnings call
Forward Guidance & Outlook
Robinhood updated its full-year 2025 outlook for combined Adjusted Operating Expenses and SBC to $2.085 billion to $2.185 billion, up from the prior range of $2.0 billion to $2.1 billion, solely to incorporate approximately $85 million in anticipated costs related to the TradePMR acquisition. This expense outlook excludes provision for credit losses, costs related to the pending Bitstamp acquisition, potential significant regulatory matters, and other significant expenses. The company noted strong customer engagement to start Q2 2025. Management expects to execute the remaining ~$833 million share repurchase authorization over approximately two years, with flexibility to accelerate if market conditions warrant.
HOOD YoY Financials
HOOD Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.