Robinhood Markets 2025 Q1 Earnings Strong Performance as Net Income Surges 114%

Robinhood Markets (HOOD) reported its fiscal 2025 Q1 earnings on Apr 30th, 2025. Robinhood outperformed expectations with a 114% increase in net income, reaching $336 million, and an earnings per share (EPS) of $0.37, surpassing the anticipated $0.33. Revenue for the quarter was $927 million, reflecting a 50% year-over-year growth and exceeding analyst forecasts of $920 million. The company maintained its guidance in line with prior estimates and expressed optimism about continued engagement and growth throughout the year, despite market volatility.

Revenue

Robinhood Markets experienced a notable revenue increase of 50% year-over-year, reaching $927 million in 2025 Q1. Transaction-based revenues surged by 77% to $583 million, driven by strong performance in cryptocurrency trading, which doubled to $252 million. Options trading contributed $240 million, marking a 56% rise, while equities trading brought in $56 million, up 44%. Interest revenues climbed 14% to $290 million, supported by growth in interest-earning assets and securities lending activity. Additional revenue of $54 million came from increased Robinhood Gold subscriptions.

Earnings/Net Income

Robinhood's EPS climbed to $0.37 in 2025 Q1, more than doubling from $0.18 in the previous year, reflecting significant earnings growth. The company's net income reached $336 million, marking a 114% increase from $157 million in 2024 Q1, setting a new record for fiscal Q1 net income over the last six years. The EPS performance exceeded expectations, indicating robust profitability.

Post-Earnings Price Action Review

Following the earnings release, Robinhood Markets (HOOD) stock showed positive short-to-medium-term gains, reflecting strong earnings metrics. Despite some volatility immediately post-earnings, with a three-day win rate of 43.75% and a maximum return of 13.78% over 30 days, the stock tends to stabilize and recover in the medium term. The 10-day and 30-day win rates stand at 50%, highlighting consistent returns over longer periods. This suggests that, while the stock may experience short-term fluctuations, it generally recovers and surpasses previous levels in the medium term, providing a positive outlook for investors assessing HOOD’s potential following earnings reports.

CEO Commentary

Vlad Tenev, Chairman & CEO, expressed enthusiasm about Robinhood's strong performance, highlighting a 50% revenue increase and significant trading volume growth, driven by the successful launch of futures and prediction markets. He emphasized rapid adoption of new products like Robinhood Strategies and Robinhood Gold, with subscribers doubling to 3.2 million. Tenev outlined strategic priorities focused on enhancing the platform for active traders, improving global offerings, and expanding wallet share. He conveyed optimism about continued engagement and market share gains, underscoring the company’s commitment to innovation and customer experience.

Guidance

Robinhood anticipates approximately $85 million in costs from the TradePMR acquisition in 2025, with total adjusted operating expenses and stock-based compensation expected to range from $2.085 billion to $2.185 billion. The company reported Q1 revenues of $873 million and EPS of $0.38, focusing on driving further profitable growth in 2025. Monthly net deposits for April were around $6.5 billion, and the company is optimistic about maintaining strong customer engagement and asset growth throughout the year.

Additional News

Robinhood Markets has been active in strategic growth initiatives, highlighted by its acquisition of TradePMR, a registered investment advisor custodial platform, in February 2025. This acquisition strengthens Robinhood's product offerings and increases its assets under management by approximately $41 billion. Additionally, the company announced an increase in its share repurchase program by $500 million, bringing the total authorization to $1.5 billion. This move reflects management's confidence in Robinhood's financial strength and future growth prospects. The company is also preparing for the acquisition of Bitstamp Ltd., a globally-scaled cryptocurrency exchange, expected to close later this year, aiming to expand its international presence and capabilities.