Financial services company Robinhood (NASDAQ:HOOD) reported revenue ahead of Wall Streets expectations in Q3 CY2025, with sales up 100% year on year to $1.27 billion. Its GAAP profit of $0.61 per share was 12.1% above analysts’ consensus estimates.
Is now the time to buy HOOD? Find out in our full research report (it’s free for active Edge members).
Robinhood (HOOD) Q3 CY2025 Highlights:
- Revenue: $1.27 billion vs analyst estimates of $1.20 billion (100% year-on-year growth, 6% beat)
- EPS (GAAP): $0.61 vs analyst estimates of $0.54 (12.1% beat)
- Adjusted EBITDA: $742 million vs analyst estimates of $741.4 million (58.2% margin, in line)
- Operating Margin: 49.8%, up from 23.7% in the same quarter last year
- Funded Customers: 26.8 million, up 2.5 million year on year
- Market Capitalization: $126.6 billion
StockStory’s Take
Robinhood’s third quarter results surpassed Wall Street’s revenue and earnings expectations, but the market responded negatively, reflecting concerns around future sustainability despite strong headline growth. Management highlighted robust trading activity in equities and options, as well as rapid adoption of new offerings such as prediction markets and the Robinhood Gold Card. CEO Vlad Tenev described the quarter as showcasing “relentless product velocity,” citing record trading volumes and expanding asset categories as key performance drivers. CFO Jason Warnick also pointed to increased contributions from newer revenue streams and tighter operational discipline, though he acknowledged a rise in expenses due to higher bonus accruals and stock-based compensation.
Looking ahead, Robinhood’s outlook is shaped by ongoing investments in product development, international expansion, and new asset classes like tokenized equities. Management sees significant opportunities in capturing a larger share of the generational wealth transfer and deepening its advisory and family-based financial offerings. Tenev emphasized that the company aims to transition from being primarily retail-focused to building a global financial ecosystem, stating, “Ten years from now, the aim is to have over half of our revenue be outside the U.S.” However, the team also flagged regulatory and competitive risks, particularly around crypto and new product launches, as factors that could influence growth trajectories.
Key Insights from Management’s Remarks
Management attributed the quarter’s results to strong trading activity, rapid product rollout, and success diversifying its revenue streams, while also acknowledging elevated expenses tied to growth investments and equity incentives.
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Trading volume records: Robinhood achieved all-time highs in equity and options trading activity, driven by an active customer base and enhancements like smart exchange routing and advanced tools for high-volume traders. Management noted that October’s single-day trading records further indicate ongoing momentum.
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Prediction markets adoption: The prediction markets platform doubled its volume quarter-over-quarter, reaching $2.3 billion contracts traded in Q3 and surpassing $100 million in annualized revenue in less than a year. CEO Vlad Tenev highlighted that expanding contract types—spanning politics, sports, and entertainment—has broadened engagement and is tracking toward a $300 million run rate based on recent trends.
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Banking and Gold Card growth: The Robinhood Gold Card saw its user base quintuple since the beginning of the year, now exceeding 500,000 cardholders with $8 billion in annualized spend. Early results from the rollout of Robinhood Banking were also described as encouraging, with management planning to accelerate deployment based on positive customer feedback.
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International and institutional focus: Nearly 700,000 funded international accounts (including Bitstamp) contributed to growth, and Bitstamp itself saw over 60% quarter-over-quarter volume growth. Management reiterated a long-term goal of shifting revenue away from a U.S.- and retail-centric mix, with a particular focus on scaling tokenization in the EU and enhancing institutional offerings.
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Management transition: CFO Jason Warnick announced his retirement, with Shiv Verma (previously SVP of Finance and Strategy and Treasurer) set to assume the CFO role. Verma emphasized continuity in maintaining Robinhood’s “lean and disciplined” culture and focus on profitable growth, while also driving further product innovation and global expansion.
Drivers of Future Performance
Robinhood’s management expects future performance to be guided by product innovation, expansion into new markets, and capturing broader wallet share, while balancing ongoing investment needs and regulatory uncertainty.
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Product and ecosystem expansion: Management outlined plans to deepen its family-oriented financial suite, launch additional advisory services, and broaden prediction markets and tokenization efforts. Tenev highlighted the goal of positioning Robinhood as a central financial hub for both individual and family accounts, aiming to capture assets as generational wealth transfers accelerate.
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International and institutional growth: The company intends to increase investment in international markets, especially in the EU and U.K., leveraging tokenized assets and Bitstamp’s institutional capabilities. Early signs from new markets are promising, but management cautioned that meaningful scale will take years to achieve.
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Regulatory and competitive risks: Uncertainty around crypto regulation, especially for staking and tokenization, remains a potential headwind. Management also acknowledged growing competition in prediction markets and international trading, noting that successful navigation of these challenges will be critical to sustaining growth and margin expansion.
Catalysts in Upcoming Quarters
Looking forward, the StockStory team will be tracking (1) the rate at which Robinhood scales its banking and prediction market offerings, (2) progress in international expansion and integration of Bitstamp’s institutional business, and (3) regulatory developments affecting crypto and tokenized assets. Execution on these fronts, as well as the rollout of new family and advisory products, will be crucial indicators of Robinhood’s ability to broaden its financial ecosystem.
Robinhood currently trades at $139.58, down from $142.72 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members).
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