Robinhood Markets (HOOD) Q4 2024 earnings summary

Executive summary

• Achieved record Q4 2024 revenues of $1.01B, up 115% year-over-year, and full-year revenues of $2.95B–$3B, up 58%, with net income of $916M in Q4 and $1.41B for the year, including significant tax and regulatory benefits.

• Funded customers reached 25.2M, up 1.8M year-over-year, with assets under custody at $193B, up 88% year-over-year.

• Gold subscribers grew 80–86% year-over-year to 2.6–2.64M, with attach rates above 10% overall and over 30% for new customers.

• Launched new products including Robinhood Gold Card, Robinhood Legend (active trader platform), expanded crypto offerings, and announced acquisitions of Bitstamp and TradePMR.

• Trading volumes surged across equities (+154%), options (+61–83%), and crypto (+400–455%) year-over-year.

Financial highlights

• Q4 net revenues were $1.01B (+115% year-over-year), with net income of $916M, including a $369–424M deferred tax benefit and regulatory accrual reversal.

• Adjusted EBITDA was $613M in Q4 (up 300–361% year-over-year, 60% margin); full year adjusted EBITDA was $1.4–$1.43B (up 160–167%).

• Diluted EPS was $1.01 in Q4 and $1.56 for the full year.

• Net deposits reached $16.1B in Q4 and $50–$50.5B for the year, growing nearly 50% year-over-year.

• Share-based compensation as a percentage of revenue/net revenues reduced to 8–10% in Q4.

Outlook and guidance

• 2025 revenue expected to grow double digits, driven by product innovation, market share gains, and international expansion.

• Adjusted operating expenses and SBC projected at $2.0–$2.1B, up about 10% from 2024, excluding credit losses and acquisition/regulatory costs.

• Diluted share count anticipated to remain roughly flat in 2025.

• Marketing spend to increase by $100M in 2025.

• Provisions for credit losses expected to gradually increase from ~$20M per quarter.