Robinhood Markets 2025 Q3 Earnings Net Income Surges 270.7% as Revenue Doubles

Robinhood Markets (HOOD) reported robust Q3 2025 results, surpassing earnings and revenue estimates. , while revenue doubled to $1.27 billion. , reflecting increased investments in new business lines.

Revenue

, a 100% year-over-year increase driven by strong performance across segments. Transaction-based revenue, a key indicator of trading activity, , , options revenue at $304 million (up 50%), and equities revenue at $86 million (up 132%). Net interest revenue added $456 million, while other revenue streams, including Prediction Markets and Bitstamp, . The company’s expansion into high-growth areas like Prediction Markets and Robinhood Banking further diversified its revenue base.

Earnings/Net Income

. , . The results underscored the company’s ability to scale profitability amid rapid growth in core and emerging business lines.

Price Action

Robinhood’s stock edged up 2.04% on the latest trading day but declined 1.60% for the week and 1.23% month-to-date. The stock’s volatility and sensitivity to macroeconomic factors highlighted challenges for short-term strategies.

Post-Earnings Price Action Review

The strategy of buying Robinhood shares on the date of its revenue raise announcement and holding for 30 days yielded modest returns. Over three years, , . The 30-day holding period failed to fully capitalize on the stock’s volatility, which is characteristic of its high-risk profile. While the strategy outperformed a simple hold in some instances, it overlooked factors like market sentiment and regulatory shifts. Future strategies could benefit from dynamic risk management tools, such as options hedging or stop-loss orders, to better align with HOOD’s unpredictable price swings.

CEO Commentary

CEO emphasized record Q3 results, driven by product innovation and expansion into Prediction Markets and Robinhood Banking. He highlighted October’s record trading volumes and margin balances as tailwinds for Q4. Strategic priorities include AI-driven tools for active traders and global expansion, reflecting confidence in sustained growth.

Guidance

. The increase reflects higher employee bonuses, payroll taxes, and investments in new ventures. The company anticipates improved efficiency in existing businesses while scaling growth areas, though risks like credit losses and operational costs remain.

Additional News

Robinhood announced CFO ’s retirement in Q1 2026, with set to succeed him. The company expanded its business lines, with Prediction Markets and Bitstamp each generating over $100 million in annualized revenue. Insider sales, , . Analysts raised price targets, with Keefe, Bruyette & .

Key Statistics

• Revenue

• Net Income

• EPS

• Market Cap

• Guidance