From Stocks to Crypto: Robinhood's Expansion Drives Record $1.27B Revenue

Robinhood Markets Inc. (NASDAQ: HOOD) reported third-quarter 2025 results that far exceeded Wall Street expectations, driven by a crypto trading boom that propelled the platform's digital assets revenue to $268 million — a 300–339% year-over-year surge, depending on the metric cited, according to a Coinotag report and a CoinCentral article. Total revenue for the period reached $1.27 billion, doubling from the prior year and surpassing analyst forecasts of $1.19 billion, per BeInCrypto. Earnings per share (EPS) came in at $0.61, outpacing the projected $0.53, the Coinotag report noted, signaling robust profitability despite rising operating costs.

The crypto-driven growth underscores Robinhood's transformation from a stock-trading app into a multi-asset platform. The company's acquisition of international exchange Bitstamp and its expansion into prediction markets added approximately $100 million annually in new revenue streams, according to an FXLeaders report and a CoinDesk article. CFO Jason Warnick highlighted that these businesses are already contributing meaningfully to the bottom line, with prediction markets alone on track for a $300 million annualized run rate based on October 2025 volumes, as noted in the Motley Fool transcript.

Robinhood's user base and asset growth further bolster its market position. Total platform assets surpassed $333 billion, up 119% year-over-year, supported by $20.4 billion in Q3 net deposits, the FXLeaders report noted. Active accounts grew to 27.9 million investment accounts and 26.8 million funded accounts, with average revenue per user (ARPU) rising 82% to $191. The company's premium subscription service, Robinhood Gold, saw a 77% increase in members to 3.9 million.

Strategic expansion beyond U.S. markets is a key focus. CEO Vladimir Tenev emphasized plans to "expand into new jurisdictions" for prediction markets and integrate tokenized stocks with greater interoperability as decentralized finance (DeFi) ecosystems evolve, according to a TradingView report. The company also aims to compete with wealth management giants like Fidelity and Schwab by targeting high-net-worth clients and introducing deposit-matching promotions, the FXLeaders coverage added.

Despite the strong results, challenges loom. Operating expenses rose 31% to $639 million, driven by marketing, expansion, and acquisition costs, the FXLeaders report observed. Robinhood repurchased 1 million shares in Q3 at $37.58 apiece, continuing a $1 billion buyback program initiated in 2024. Analysts noted regulatory scrutiny and crypto market volatility as potential headwinds, though the company remains confident in its compliance framework and long-term growth trajectory, per the TradingView coverage and an Investing.com note.

Shares of Robinhood fell over 2% in after-hours trading following the report, despite the earnings beat, though the stock remains up 280% year-to-date, CoinCentral reported. Tenev and his team will now navigate a leadership transition, with outgoing CFO Warnick set to be replaced by Shiv Verma in early 2026, according to the Motley Fool transcript.

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