Robinhood Reports 50% Revenue Growth to $927 Million in Latest Quarter

Robinhood Markets, Inc. reported significant financial growth in its latest quarterly results, with total net revenues reaching $927 million for the three months ended March 31, 2025, a 50% increase from $618 million in the same period last year. The company's net income more than doubled, rising 114% to $336 million, compared to $157 million in the prior year. This growth translated into a diluted earnings per share (EPS) of $0.37, up from $0.18 a year earlier. Operating expenses also increased, but at a slower rate of 21%, totaling $557 million, driven by higher marketing and general administrative costs.

The increase in revenues was primarily fueled by a substantial rise in transaction-based revenues, which surged 77% to $583 million, largely due to a 100% increase in cryptocurrency trading revenues and a 56% rise in options trading. The number of Funded Customers grew by 8% to 25.8 million, while Investment Accounts increased by 11% to 27 million. Total Platform Assets saw a remarkable 70% increase, reaching $220.6 billion, bolstered by strong net deposits of $18 billion during the quarter.

Strategically, Robinhood completed the acquisition of TradePMR, a custodial and portfolio management platform for Registered Investment Advisors (RIAs), in February 2025. This acquisition is expected to enhance Robinhood's service offerings and expand its customer base. Additionally, the company launched Robinhood Strategies, a digital investment advisory service, in March 2025, aimed at providing tailored investment portfolios to users. The company also announced a share repurchase program, authorizing up to $1.5 billion in stock buybacks, reflecting its commitment to returning value to shareholders.

Operationally, Robinhood reported a significant increase in user engagement, with a 90% rise in Robinhood Gold Subscribers to 3.19 million. The company also noted a 39% increase in average revenue per user (ARPU), which reached $145. However, the filing indicated challenges, including a 14% decrease in average trading volume per trader in the cryptocurrency segment and a potential impact from future interest rate cuts on net interest revenues.

Looking ahead, Robinhood expressed confidence in its ability to meet liquidity needs for the next 12 months, supported by a strong cash position of $4.42 billion and a total borrowing capacity of up to $3.65 billion through revolving credit facilities. The company remains focused on expanding its product offerings and customer base while navigating the evolving regulatory landscape and market conditions.