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, up 58% year-over-year, with net income of $916M in Q4 and $1.41B for the year.

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

• Gold subscribers grew 86% year-over-year to 2.6M, with attach rates above 10% overall and over 30% for new customers in Q4.

• Product innovation included launches of Robinhood Gold Card, Legend desktop platform, new crypto offerings, and expansion into the UK/EU, with plans for Asia-Pacific in 2025.

• Announced and began integrating acquisitions of Bitstamp (crypto exchange) and TradePMR (RIA platform), both expected to close in H1 2025.

Financial highlights

• Q4 transaction-based revenues grew over 200% year-over-year to $672M, led by crypto ($358M, up 700%), options ($222M, up 83%), and equities ($61M, up 144%).

• Adjusted EBITDA was $613M in Q4 2024 (up 300%+ year-over-year) and $1.43B for the full year (up 167%), with Q4 margin at 60%.

• Q4 net income included a $369M deferred tax benefit and a $55M regulatory settlement benefit; full-year diluted EPS was $1.56.

• Full-year operating expenses fell 21% to $1.90B; adjusted operating expenses and SBC decreased 16% to $1.94B.

• Net deposits were $16.1B in Q4 and $50.5B for the year, up 49% year-over-year.

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 guidance for 2025 is $2.0–$2.1B, up about 10% from 2024, excluding credit losses and acquisition costs.

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

• Continued investment in new products, features, and international expansion, with a $100M increase in marketing spend planned.

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