Live Earnings: Robinhood (HOOD) Blows Out Earnings But Shares are Flat

• “We want to deliver the private banking experience in digital form to the mass market… and Robinhood Banking is still on track for rollout later this quarter.”
  – Vlad Tenev, CEO
  Sentiment: Ambitious, democratizing finance.

• “Tokenization is the biggest innovation in capital markets in over a decade… stock tokens will do for stocks what stablecoins did for fiat currencies.”
  – Vlad Tenev, CEO
  Sentiment: Visionary, disruptive potential.

• “Promotions are part of our playbook. The economics are incredibly compelling, and we continue to see large balances flow in when we run them.”
  – Jason Warnick, CFO
  Sentiment: Confident, disciplined approach to customer acquisition.

• “We’ve doubled retirement assets to over $20 billion. Customers are trusting us with their most serious, long-term money.”
  – Vlad Tenev, CEO
  Sentiment: Credibility building, highlighting maturity of platform.

• “We continue to see high ROI opportunities across marketing and deposits, but we’re balancing that with our goal of delivering profitable growth.”
  – Jason Warnick, CFO
  Sentiment: Pragmatic, investor-focused on sustainable scaling.

• Expansion into Banking and Lending Services

  • Analysts repeatedly asked about timing for Robinhood Banking’s rollout and potential entry into loans (personal, mortgage, auto).

  • Management emphasized banking launch in late Q3 and ambitions to custody “all customer assets” while using partnerships (Coastal, Sage Home Loans) to offer competitive rates without a charter—though a future charter isn’t ruled out.

• Deposit Growth and Promotional Strategy

  • Net deposit moderation in Q2 drew questions about marketing spend and promo pacing.

  • Management signaled long-term growth trends remain strong, with promotions as a core tool, but balanced against ROI and profitable growth targets.

• Global Expansion and Tokenization of Assets

  • Analysts focused on Robinhood’s push into Europe and tokenized asset offerings.

  • CEO pitched tokenization as a transformative innovation akin to stablecoins, promising 24/7, self-custodial trading of stocks and private market assets over time.

• Product Velocity and Customer Engagement

  • Active trader tools, Robinhood Gold adoption (3.5M subscribers), futures, index options, and prediction markets drove record trading activity.

  • Retirement assets ($20B+) and Robinhood Strategies ($0.5B AUM) highlight shift toward higher-value, long-term assets.

• Strategic Vision for Crypto and Global Financial Ecosystem

  • Management reiterated long-term ambition to build the “#1 global financial ecosystem,” combining traditional and tokenized assets, staking, perpetual futures, and Layer 2 blockchain infrastructure.

Leave this blog open to receive updates. We will post some highlights from the call.

Robinhood’s conference call is starting in a few minutes. You can listen in here.

Robinhood had an extraordinary quarter, but its shares are now up just .6%.

As we noted in our preview and earlier in the live blog, the reason is simply that expectations were very high after the company’s recent run.

Looking around in tech after hours, results are stunning. Meta shares are up 9% and Microsoft is up nearly 7% after each posting blowout earnings.

We just posted some analysis of Robinhood’s earnings – but the key idea is this: the company absolutely blew out revenues and EPS last quarter.

Revenue was $989 million, which was significantly above expectations of $913 million. EPS of $.42 came in above expectations of $.35.

Normally earnings that good would lead to a 10% gain or more, but Robinhood shares have been on a furious rally so significant outperformance was expected.

Still, an extremely solid earnings report.

HOOD | Robinhood Markets Q2’25 Earnings Highlights:

• Adj. EPS: $0.42 ✅; UP +100% YoY
• Revenue: $989.0M [✅]; UP +45% YoY
• Net Income: $386.0M [✅]; UP +105% YoY
• Adjusted EBITDA: $549.0M [✅]; UP +82% YoY
• Net Deposits: $13.8B; UP +25% YoY
• Robinhood Gold Subscribers: 3.5M; UP +76% YoY
• Average Revenue Per User (ARPU): $151; UP +34% YoY
• Total Platform Assets: $279B; UP +99% YoY
• Funded Customers: 26.5M; UP +10% YoY

Q2’25 Outlook:

• Operating Expenses Guidance: $2.15B to $2.25B [➖]
  • Includes $65 million of anticipated costs related to the acquisition of Bitstamp.
  • Excludes provision for credit losses and costs related to the pending acquisition of WonderFi.

Q2 Segment Performance:

• Transaction-based Revenues: $539.0M [✅]; UP +65% YoY
• Net Interest Revenues: $357.0M [✅]; UP +25% YoY
• Other Revenues: $93.0M [✅]; UP +33% YoY

Other Key Q2 Metrics:

• Adjusted Operating Expenses: $522.0M [✅]; UP +6% YoY
• Cash and Cash Equivalents: $4.2B; DOWN -7.5% YoY
• Share Repurchases: $124.0M; 3M shares at an average price of $41.52

CEO Commentary:

• Vlad Tenev: “We delivered strong business results in Q2 driven by relentless product velocity, and we launched tokenization— which I believe is the biggest innovation our industry has seen in the past decade.”

CFO Commentary:

• Jason Warnick: “Q2 was another great quarter as we drove market share gains, closed the acquisition of Bitstamp and remained disciplined on expenses. And Q3 is off to a great start in July, as customers accelerated their net deposits to around $6 billion and leaned in with strong trading across categories.”

Strategic Updates:

• Robinhood continues to expand its global crypto offerings, having launched Stock Tokens in Europe and acquired Bitstamp, enhancing its institutional business.
• Robinhood Strategies, a digital advisory offering, is now managing over $0.5 billion in assets and serving over 100,000 customers.

Get your popcorn ready, because Robinhood earnings should hit very shortly after the 4 p.m. bell. As one final reminder, all you have to do is leave this page open and updates will automatically appear. We expect to provide 5 to 10 updates with news and analysis in the half hour after Robinhood’s report.

If you just went to Google and saw Robinhood shares were falling, there’s no need for alarm.

At around 3 p.m., Jerome Powell said there has been no decision made on cutting rates at the September meeting. Immediately after the comment, Treasury yields jumped 6 basis points and stocks fell.

Point being: This is a broader market sell-off and nothing related to Robinhood’s upcoming report after the bell.

Cathie Wood has been selling Robinhood across various ARK Investments funds. The company sold 66,186 shares of Robinhood from ARKW and 52,904 from ARKF.

Both those funds were loading into Bitmine Immersion Technologies (Nasdaq: BMNR) at the same time. Bitmine saw a massive decline on Monday, but shares are up 12% today.

Jerome Powell is holding a press conference at 2:30 to discuss the Federal Open Market Committee’s July interest-rate decision.

Betting markets are placing a 99% chance that the Fed will leave rates unchanged, but commentary from Powell and other details will be important. There’s a chance that multiple Fed governors will vote against keeping rates locked.

The big picture: even without a rate cut, there could be significant volatility late in the trading day. If Robinhood shares are moving, it’s likely unrelated to traders making earnings bets and more related to big money movements after Powell’s press conference.

On July 1st KeyBanc raised their price target on Robinhood from $60 to $110 and maintained an overweight rating on shares.

The first is most impressed by Robinhood’s introduction of toekenized equities for European users and an expanded geographic footprint for crypto trading.

KeyBanc seeing significant TAM expansion from Robinhood’s recent product launches.

We already detailed what Robinhood reported in Q1, so let’s take a look at what Wall Street expects them to report this quarter.

What Wall Street Expects from Robinhood’s Q2

• Revenue: $913.3 million
• Adjusted EPS: $.35
• Free Cash Flow: $253.5 million

Robinhood’s forward guidance has been centered around operating expenses in the past, but Wall Street currently expects the third quarter to be relatively flat.

Wall Street Expectations for Robinhood’s Q3

• Revenue: $931 million
• Adjusted EPS: $.35
• Free Cash Flow: $291.5 million

Any commentary from Robinhood that could cause Wall Street to take up expectations for next quarter could likely lead to more share growth in the coming weeks.

It’s important to note that we’ve seen many stocks this earnings season that had seen strong share gains into earnings fall even after surpassing earnings. With Robinhood shares up 162% so far this year, the company will likely need to surpass expectations by a healthy margin for shares to ‘pop’ after hours tonight.