Following a record setting, blistering Q4 led by soaring Crypto trading following Donald Trump’s election, US neobroker Robinhood reported results for Q1 2025 that were not quite as good as the previous quarter, but still very impressive from a historical perspective.
After seeing Revenues top $1 billion and Net Profit hit $916 million in Q4 (thanks in part to a $358 million realized tax benefit), Robinhood reported Revenues of $927 million (-9% QoQ) and Net Profit of $336 million (-63%) in Q1 2025. Still, Robinhood’s best ever quarter excluding Q4.
Robinhood shares reacted positively to the news, with aftermarket trading late Wednesday and into early Thursday seeing a 1% rise in NASDAQ:HOOD. Robinhood shares (at about $49) are still well off their 52 week high of $66.08, set in mid February, before the stock (and crypto) market began its recent decline.
Robinhood’s Board of Directors increased the company’s share repurchase authorization by $500 million, to $1.5 billion.
Vlad Tenev, Chair and CEO of Robinhood said,
“This quarter, we significantly accelerated product innovation across our key initiatives, highlighted by the announcement of Robinhood Strategies, Banking, and Cortex. Customers have clearly responded — demonstrated by record-breaking net deposits, Robinhood Gold subscriptions, and options volume, as well as robust year-over-year growth in trading across all asset classes.”
Jason Warnick, Chief Financial Officer of Robinhood said,
“We started the year off strong, driving market share gains, closing the acquisition of TradePMR, and remaining disciplined on expenses,” said Jason Warnick, Chief Financial Officer of Robinhood. “As a result, in Q1 we grew revenues by 50 percent year-over-year and EPS by over 100 percent. It’s also great to see strong customer engagement to start Q2. Additionally, we continue to return capital to shareholders and increased our share repurchase authorization by $500 million to $1.5 billion, reflecting management and the board’s confidence in our financial strength and future growth prospects.”
Robinhood Q1 2025 Results
- Total net revenues increased 50% year-over-year to $927 million.
- Transaction-based revenues increased 77% year-over-year to $583 million, primarily driven by cryptocurrencies revenue of $252 million, up 100%, options revenue of $240 million, up 56%, and equities revenue of $56 million, up 44%.
- Net interest revenues increased 14% year-over-year to $290 million, primarily driven by growth in interest-earning assets and securities lending activity, partially offset by lower short-term interest rates.
- Other revenues increased 54% year-over-year to $54 million, primarily due to increased Robinhood Gold subscribers.
- Net income increased 114% year-over-year to $336 million.
- Diluted earnings per share (EPS) increased 106% year-over-year to $0.37.
- Total operating expenses increased 21% year-over-year to $557 million.
- Adjusted Operating Expenses and Share-Based Compensation (SBC) (non-GAAP) increased 16% year-over-year to $533 million, which includes costs related to TradePMR.
- Adjusted EBITDA (non-GAAP) increased 90% year-over-year to $470 million.
- Funded Customers increased by 1.9 million, or 8%, year-over-year to 25.8 million.
- Investment Accounts increased by 2.6 million, or 11%, year-over-year to 27.0 million.
- Total Platform Assets increased 70% year-over-year to $221 billion, primarily driven by continued Net Deposits and the acquisition of TradePMR.
- Net Deposits were $18.0 billion, an annualized growth rate of 37% relative to Total Platform Assets at the end of Q4 2024. Over the past twelve months, Net Deposits were $57.3 billion, a growth rate of 44% relative to Total Platform Assets at the end of Q1 2024.
- Average Revenue Per User (ARPU) increased 39% year-over-year to $145.
- Robinhood Gold Subscribers increased by 1.5 million, or 90%, year-over-year to 3.2 million.
- Cash and cash equivalents totaled $4.4 billion compared with $4.7 billion at the end of Q1 2024.
- Share repurchases were $322 million, representing 7.2 million shares of our Class A common stock at an average price per share of $44.87. This more than offset the 2.0 million shares of Class A common stock issued in connection with the acquisition of TradePMR.
Robinhood Q1 Highlights
Robinhood said it executed on strategy with robust product velocity in Q1, releasing cutting-edge products for customers, with more in the pipeline.
- Enhanced Products for Active Traders – Robinhood continues to roll out advanced capabilities and tools for active traders aimed at making trading faster, clearer, and more intuitive. The desktop trading platform, Robinhood Legend, now features increased speed, support for index options and crypto, and new indicators and charts. In March, Robinhood expanded its prediction markets offering by launching a hub and giving customers the opportunity to trade on the outcomes of some of the world’s biggest events. Over the last six months customers have traded more than 1 billion event contracts.
- Increasing Wallet Share by Serving the Entirety of Customers’ Financial Needs – During its second annual Gold keynote event in March, Robinhood unveiled new advisory, banking, and AI offerings: Robinhood Strategies, Robinhood Banking, and Robinhood Cortex. With plans to roll out to all customers in the coming weeks, Robinhood Strategies is already serving more than 40 thousand customers and managing more than $100 million in customer assets as of April 25, 2025. In February, Robinhood also closed its acquisition of TradePMR, an RIA custodial platform, with approximately $41 billion in assets managed by RIAs as of March 31, 2025.
- Building a Global Financial Ecosystem – Robinhood continues to make progress internationally, with over 150 thousand customers across the UK and EU. The acquisition of globally-scaled cryptocurrency exchange Bitstamp Ltd. is on track to close in the middle of this year, subject to customary closing conditions.
- Robinhood Board of Directors Authorizes Additional $500 million in Share Repurchases – Following the authorization of a $1 billion share repurchase program announced in May 2024, the Robinhood board of directors has authorized an additional $500 million, bringing the program total to $1.5 billion. Through April 25, 2025, 20 million shares of Class A common stock have been repurchased at an average price of $33.40, representing a total $667 million. The remaining authorization now totals approximately $833 million which management expects to execute over the next roughly two years, with flexibility to accelerate if market conditions warrant.
Additional Q1 2025 Operating Data
- Robinhood Retirement AUC increased over 200% year-over-year to a record $14.4 billion.
- Cash Sweep increased 48% year-over-year to a record $28.2 billion.
- Margin Book increased 115% year-over-year to a record $8.8 billion.
- Equity Notional Trading Volumes increased 84% year-over-year to $413 billion.
- Options Contracts Traded increased 46% year-over-year to a record 500 million.
- Crypto Notional Trading Volumes increased over 28% year-over-year to $46 billion.
Robinhood’s full Q1 2025 results report can be seen here.
