Robinhood Markets (HOOD) Q1 2025 earnings summary

Executive summary

• Net revenues rose 50% year-over-year to $927 million, with net income up 114% to $336 million and diluted EPS up 106% to $0.37, driven by strong customer growth, product innovation, and acquisitions.

• Funded Customers reached 25.8 million, up 1.9 million year-over-year, and Total Platform Assets surged 70% to $221 billion, supported by record net deposits of $18 billion and the TradePMR acquisition.

• Robinhood Gold subscribers nearly doubled year-over-year to 3.2 million, with rapid adoption of the Gold credit card and strong growth in retirement assets.

• Product innovation accelerated with launches of futures, index options, prediction markets, Robinhood Strategies, Banking, and Cortex, alongside global expansion.

• Board increased share repurchase authorization by $500 million to $1.5 billion, with $322 million repurchased in Q1.

Financial highlights

• Transaction-based revenues grew 77% year-over-year to $583 million, led by 100% growth in crypto, 56% in options, and 44% in equities.

• Net interest revenues rose 14% to $290 million, with margin interest and securities lending as key drivers.

• Adjusted EBITDA increased 90% year-over-year to $470 million, with a 51% margin; Adjusted EBITDA margin improved by 11 percentage points year-over-year.

• Operating expenses grew 21% to $557 million, with Adjusted Operating Expenses and SBC up 16% to $533 million.

• Cash and cash equivalents at quarter-end were $4.4 billion.

Outlook and guidance

• Updated full-year 2025 outlook for Adjusted Operating Expenses and SBC to $2.085–$2.185 billion, including $85 million for TradePMR, excluding Bitstamp acquisition and credit loss provisions.

• Repurchase program expected to be executed over the next two years, with flexibility to accelerate based on market conditions.

• Pending Bitstamp acquisition expected to close mid-2025, expanding global and institutional crypto presence.

• Focus remains on profitable growth, maximizing EPS and free cash flow per share, and international expansion.