Robinhood doubled Q3 revenue to $1.27B and beat earnings expectations with 61 cents per share
Robinhood reported a highly successful Q3, with revenue doubling year-over-year to $1.27 billion, surpassing analyst expectations of $1.19 billion. The surge was led by strong crypto trade performance ($268M, up 300%) and higher user engagement. Earnings per share reached 61 cents, exceeding estimates, and net income soared by 271% to $556M. Total platform assets grew 119% to $333B, with user numbers increasing—funded accounts up 10%, ARPU up 82%, and Gold subscribers growing 77%. Robinhood introduced new business lines, including Prediction Markets and Bitstamp, while pursuing wealth management strategies targeting competitors like Fidelity and Schwab. Despite a 31% rise in operating expenses to $639M, adjusted EBITDA rose 177% to $742M. The company continues share buybacks, acquiring 1M shares in Q3 for $107M. CEO Vlad Tenev highlighted strong growth momentum and plans to expand banking and venture services.
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Robinhood's Explosive Q3 Earnings
Robinhood posted a blowout quarter on Wednesday, pushing Q3 revenue to $1.27 billion, doubling from last year, and crushing analyst forecasts. Wall Street had expected $1.19 billion, but the company overshot, driven by surging crypto trades and higher user engagement. Earnings per share hit 61 cents, up from 17 cents a year ago, and above the 53 cents analysts had penciled in. Net income jumped 271% to $556 million, compared to $150 million during the same stretch in 2024.
Crypto and Revenue Breakdown
Crypto trading revenue surged to $268 million, up over 300% year-over-year. This, combined with options trading revenue of $304 million (up 50%) and equity trading revenue of $86 million (up 132%), highlights Robinhood’s core drivers of growth. However, transaction-based revenue fell slightly short at $730 million compared to the $739 million estimate from StreetAccount. Despite this small miss, the results solidify Robinhood as a dominant force in the industry.
Expansion Beyond Retail Trading
Robinhood is expanding its ambitions beyond retail-focused services. The company added two major business lines: Prediction Markets and Bitstamp, both already generating over $100 million annually, per CFO Jason Warnick. He stated: “Q3 was another strong quarter of profitable growth. And Q4 is off to a strong start.” CEO Vlad Tenev noted their shift away from a retail-only identity: “Prediction Markets are growing rapidly, Robinhood Banking is starting to roll out, and Robinhood Ventures is coming.” This diversified strategy moves Robinhood into wealh management to compete with industry players like Fidelity and Schwab.
User Base Growth and Financial Highlights
Robinhood saw significant growth in total platform assets, which hit $333 billion, a 119% increase year-over-year, driven by net deposits of $20.4 billion for Q3 and $68.3 billion over the past year. Annualized growth rates in deposits reached 29% and 45%, further boosting its asset base. The company now serves a larger user base, with 26.8 million funded customers (up 10%) and 27.9 million investment accounts (an 11% increase). Average Revenue Per User jumped to $191, up 82%, while Robinhood Gold subscribers grew by 77% to 3.9 million.
Operating Costs and Share Buybacks
Operating expenses rose 31% to $639 million, mainly due to marketing, expansion, and acquisition-related costs. Adjusted operating expenses, including share-based compensation, grew 29% to $613 million. However, this was offset by a 177% rise in adjusted EBITDA, reaching $742 million. Robinhood also continued its share buyback program, purchasing 1 million shares in Q3 for $107 million (averaging $104.95 per share). Since Q3 last year, Robinhood has repurchased 22 million shares for $810 million, signaling strong confidence in its long-term prospects.