Robinhood's Q3 2025 Earnings Call: Contradictions Emerge on Banking Rollout, Prediction Markets, Gold Expansion, and Crypto Staking

Business Commentary:

• Revenue Growth and Product Velocity:
• Robinhood reported record revenue of nearly $1.3 billion for Q3 2025, up over 100% year-on-year.

• The growth was driven by strong performance across product categories, such as Prediction Markets, which doubled in volume, and increased market share in equities, options, and crypto.

• Prediction Market Expansion:

• 
• Prediction Markets reached an annualized revenue milestone of $100 million, surpassing this milestone in less than a year.

• This was attributed to increased user engagement and the expansion of contract offerings to over 1,000 live contracts, including sports, economics, and entertainment categories.

• Strong Customer Engagement and Adoption:

• Robinhood Gold subscribers reached 3.9 million, marking a 14% adoption rate across the net account base.
• The increased adoption was due to Robinhood's expansion into new financial products like the Robinhood Gold Card and early customer rollout of Robinhood Banking, encouraging customer deposits and interest earnings.

• Geographical Market Expansion:

• The company reported nearly 700,000 international customers funded, including from the U.K. and EU.
• Growth in international markets was driven by the tokenization initiative, which includes stock tokens in the EU, and strategic marketing efforts to increase customer awareness and engagement.

Contradiction Point 1

Robinhood Banking Rollout

It involves the rollout timeline and customer feedback for Robinhood Banking, which is a significant new product offering and strategic focus for the company, impacting investor expectations and market confidence.

How quickly will Robinhood Banking be rolled out to users? - Preston (Shareholder)

2025Q3: Rollout will be relatively fast, governed by customer feedback. Customers like what they see so far, and the economics between borrowing and spending are well-calibrated. The rollout will accelerate, with initial positive results in New York. - Vladimir Tenev(CEO)

When will Robinhood Banking be broadly available for customers? - Tarun Kay (Shareholder)

2025Q2: Robinhood Banking is designed to provide a private banking experience for the mass market, integrating private banking features like high yield, estate planning, and net worth tracking. It's currently being tested with internal employees and is scheduled to roll out to customers later this quarter. - Vladimir Tenev(CEO)

Contradiction Point 2

Prediction Markets Strategy

This contradiction involves the strategic direction of Robinhood's prediction markets, impacting product offerings and regulatory positioning, which are critical for understanding the company's growth strategy and market positioning.

What advantages does Robinhood have in prediction markets, and what are the strategic trade-offs between maintaining retail distribution and developing in-house capabilities? - Patrick Moley (Piper Sandler & Co.)

2025Q3: In Prediction Markets, we're going through this kind of aggressive experimentation phase, where we're trying a whole bunch of different kind of markets, and then we'll evaluate how they're doing and how customers are engaging with them and whether they're going to be sustainable or not. So we kind of expect to see a lot of volatility in terms of our engagement with our customers in Prediction Markets - Vladimir Tenev(CEO)

Which businesses are on track to reach a $50 million annual revenue run rate? - Brian Bedell (Deutsche Bank AG)

2025Q2: Prediction Markets are seeing increased adoption, and recent weeks brought new categories. The product is being enhanced to attract more customers and improve discoverability. - Vladimir Tenev(CEO)

Contradiction Point 3

Robinhood Gold Expansion and Strategy

It involves the strategic direction and expected benefits of Robinhood Gold, which are critical for understanding the company's financial and growth strategy.

How do you see Robinhood's financial ecosystem evolving, and what products will be key? - Griffin (Shareholder)

2025Q3: The aspiration is to make Robinhood Gold one of the best membership loyalty programs. Comparable to Amazon Prime or Costco membership. Current customer engagement and feedback are positive, credit card rollout is ongoing, and banking to be launched as a Gold-only product. - Vladimir Tenev(CEO)

What is the trajectory of Robinhood Gold given the quarter-over-quarter growth increase? - Dan Dolev (Mizuho)

2025Q1: Robinhood Gold is an exceptional value for active traders. As a Gold member, you get a suite of premium features, including instant settlement, margin trading, and more. We plan to expand the Gold offering with new features and benefits in the future. - Jason Warnick(CFO)

Contradiction Point 4

Crypto Staking and Customer Engagement

It involves the engagement and interest of customers in crypto staking, which is crucial for understanding the company's crypto-related revenue and growth.

Is there any information on crypto staking on Robinhood's platform? - Tannor with Future Investing

2025Q3: Crypto had a strong quarter with $260 million in revenue. The focus is on maintaining market share, not necessarily transaction volumes. Diversification of crypto products and customer engagement is a priority. - Vladimir Tenev(CEO)

Can you elaborate on crypto activity amid declining trading volumes and engagement? - Devin Ryan (Citizens JMP)

2025Q1: Crypto had a strong quarter with $260 million in revenue. The focus is on maintaining market share, not necessarily transaction volumes. Diversification of crypto products and customer engagement is a priority. - Vladimir Tenev(CEO)

Contradiction Point 5

International Expansion and M&A

This contradiction addresses Robinhood's approach to international expansion and whether M&A will play a role, impacting growth strategies and potential partnerships.

How does M&A fit into international expansion strategies? - Edward Engel (Compass Point Research & Trading, LLC)

2025Q3: Crypto staking has been well-received, with a current stake amount of approximately $1 billion, showing strong customer interest. - Jason Warnick(CFO)

How are you approaching growth—organically or via M&A? - Questioner's Name

2025Q3: Robinhood naturally focuses on organic growth but is open to M&A when opportunities align with goals. International expansion will include a mix of organic growth and strategic partnerships. - Jason Warnick(CFO)