10-QPeriod: Q2 FY2025

Robinhood Markets, Inc. Quarterly Report for Q2 Ended Jun 30, 2025

Filed July 31, 2025For Securities:HOOD

Summary

Robinhood Markets, Inc. reported a strong second quarter for fiscal year 2025, with total net revenues increasing by 45% year-over-year to $989 million. This robust performance was driven by significant growth across all revenue segments, particularly transaction-based revenues which saw a 65% increase, and net interest revenues up 25%. Net income more than doubled to $386 million, translating to a diluted EPS of $0.42, a 100% increase from the prior year. The company also experienced substantial growth in key customer metrics. Funded Customers increased by 10% to 26.5 million, and Total Platform Assets grew by an impressive 99% to $278.6 billion, largely due to customer net deposits and strategic acquisitions. The acquisition of Bitstamp in June 2025 appears to have been a significant contributor to asset growth. Robinhood Gold Subscribers also saw a substantial 76% increase, highlighting the growing adoption of their premium services. Despite increased operating expenses, largely driven by marketing and provision for credit losses, the company demonstrated improved profitability and operational efficiency.

Financial Highlights

40 data points
Beta

Revenue

$989.00M

Net Income

$386.00M

39.0% Net Margin

EPS (Diluted)

$0.42

Total Assets

$35.32B

Cash & Equivalents

$4.16B

Free Cash Flow

$3.51B

Financial Statements
Beta
Revenue$989.00M
Operating Expenses$550.00M
Net Income$386.00M
EPS (Basic)$0.44
EPS (Diluted)$0.42
Shares Outstanding (Basic)882.15M
Shares Outstanding (Diluted)909.13M

Key Highlights

  • 1Total net revenues surged by 45% year-over-year to $989 million, driven by strong performance across all revenue segments.
  • 2Net income more than doubled, reaching $386 million, with diluted EPS increasing by 100% to $0.42.
  • 3Total Platform Assets nearly doubled, increasing by 99% to $278.6 billion, significantly boosted by acquisitions and net deposits.
  • 4Funded Customers grew by 10% to 26.5 million, indicating continued user base expansion.
  • 5Robinhood Gold Subscribers increased by 76% to 3.48 million, showcasing the appeal of premium offerings.
  • 6The acquisition of Bitstamp in June 2025 significantly contributed to asset growth and international expansion.
  • 7Adjusted EBITDA (non-GAAP) increased by 82% to $549 million, reflecting improved profitability.

Frequently Asked Questions

Robinhood's revenue growth was driven by a broad increase across all segments. Transaction-based revenues grew by 65% due to higher volumes in options, cryptocurrencies, and equities, while net interest revenues increased by 25% primarily from growth in interest-earning assets and securities lending activities. Other revenues, particularly from Robinhood Gold subscriptions, also saw significant growth.

The acquisition of TradePMR in February 2025 contributed to the growth in investment accounts. The Bitstamp acquisition in June 2025 significantly boosted Total Platform Assets by $8.9 billion and added to customer numbers, accelerating international expansion and crypto offerings. The impact of these acquisitions is reflected in the substantial increase in Total Platform Assets and Funded Customers.

Robinhood anticipates that potential future rate cuts by the Federal Reserve could negatively impact its net interest revenues and customer returns on cash deposits. The company actively manages its net interest spread for its Cash Sweep program to mitigate some of this risk.

Key risks include intense competition, reliance on transaction-based revenue (especially PFOF), potential regulatory changes impacting business models, cybersecurity threats, operational risks related to platform stability, fluctuations in cryptocurrency markets and regulations, and the potential impact of adverse publicity on brand reputation. The company also faces risks related to managing rapid expansion and integrating acquisitions.