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    HOOD
    Earnings call· Sep 2025(Q3 FY25)

    Robinhood Markets, Inc. HOOD

    Nov 5, 2025 Source

    Executive summary

    Robinhood Q3 FY25 — Record Revenue and Strong Product Velocity

    Robinhood delivered a quarter of strong profitable growth, driven by relentless product velocity across active trading, wallet share expansion, and global ecosystem development. The company achieved record revenues and net deposits, with significant growth in key products like Prediction Markets and Robinhood Gold. Management is focused on continued diversification and disciplined expense management, while also investing in new growth areas and international expansion.

    Highlights

    5

    • Revenue doubled year-over-year to a record of nearly $1.3 billion.

    • Net deposits exceeded $20 billion in the quarter, surpassing last year's full-year record of $50 billion year-to-date.

    • Robinhood Gold subscribers grew to 3.9 million, an increase of over 75% year-over-year.

    • Prediction Markets volume reached 2.3 billion contracts in Q3 and 2.5 billion in October, doubling every quarter since launch.

    • Robinhood Gold Card cardholders grew 5x since the beginning of the year to over 0.5 million, with over $8 billion in annual spend.

    Concerns

    2

    • Q3 adjusted OpEx and share-based compensation totaled $613 million, approximately $40 million above the midpoint of the prior outlook range, due to higher employee bonus accrual and unplanned payroll tax expense.

    • An AWS-related outage caused degraded app performance for a significant number of customers, highlighting ongoing platform resilience needs.

    Guidance & targets

    3
    CategoryTargetConfidence
    Full-year 2025 Adjusted OpEx plus SBC
    around $2.28 billion
    high materiality
    Medium
    Revenue mix
    over half of our revenue be outside the U.S.
    high materiality
    Low
    Customer segment revenue mix
    over half being non-retail institutional
    high materiality
    Low

    Operational metrics

    31
    Revenue
    $1.3 billionup over 100% year-over-year
    Q3 FY25
    Revenue growth
    65%up
    YTD Q3 FY25
    Earnings per share growth
    150%up
    YTD Q3 FY25
    Incremental Adjusted EBITDA Margin
    75%
    YTD Q3 FY25

    Achieved while staying disciplined on expenses.

    Prediction Markets Annualized Revenue
    $100 million
    Q3 FY25
    Prediction Markets Run Rate
    $300 million
    October volumes
    Bitstamp Annualized Revenue
    $100 million
    Q3 FY25
    Trading Volumes growth
    double to triple digitsup
    Q3 FY25
    Interest-Earning Assets growth
    over 50%up
    Q3 FY25
    Robinhood Gold Subscribers
    3.9 millionover 75% year-over-year growth
    Q3 FY25
    Adjusted OpEx and Share-Based Compensation
    $613 millionabout $40 million above the midpoint of our prior outlook range
    Q3 FY25
    CEO Market-Based Award Payroll Tax Expense
    —
    Q3 FY25

    Triggered by significant increase in stock price, resulting in unplanned payroll tax expense in G&A. The $40,000 is a humorous reference to the CEO's base salary after the award vesting.

    Prediction Markets Contracts
    2.3 billiondoubled volume every quarter since then
    Q3 FY25
    Prediction Markets Contracts
    2.5 billionOctober by itself was bigger than all of Q3 combined
    October
    Prediction Markets Live Contracts
    over 1,000
    Q3 FY25
    Assets Under Custody/Management
    over 1/3 of $1 trillion
    Q3 FY25

    Context of generational wealth transfer.

    Generational Wealth Transfer
    $120 trillion
    ongoing

    Macro trend impacting the company's opportunity.

    Retirement Assets
    $25 billionmore than doubled in the past year
    Q3 FY25
    Robinhood Strategies Assets
    $1 billion
    Q3 FY25
    Robinhood Gold Card Cardholders
    over 0.5 million5x growth in cardholders since the beginning of the year
    Q3 FY25
    Robinhood Gold Card Annual Spend
    $8 billion
    annual
    Tokenized Equities (EU) Public Companies
    400-plus
    Q3 FY25
    Bitstamp Volumes growth
    60-plus%up
    QoQ
    Net Deposits
    $20 billion
    Q3 FY25
    Net Deposits
    $50 billionexceeded last year's record
    YTD FY25
    International Funded Customers
    nearly 700,000
    Q3 FY25
    Funded Accounts
    27 millionscaled from a couple of million
    Q3 FY25
    Non-Accredited Americans
    85%
    current

    Cited as a reason for Robinhood Ventures to provide access to private markets.

    Crypto Blended Take Rate
    high $0.60 zone
    Q3 FY25

    Refers to the take rate for crypto transactions, including smart exchange routing.

    Tokenized Equities Foreign Exchange Fee
    10slightly higher than what we would be foregoing with payment for order flow
    current

    Current revenue model for tokenized equities in the EU.

    Crypto Staked Amount
    $1 billion
    end of Q3 FY25

    Customers are responding well to the ability to stake.

    Product announcements

    5
    ProductTypeDetails
    Shortinglaunch
    AI-driven custom indicators powered by Robinhood Cortexlaunch
    Robinhood Sociallaunch
    Robinhood Bankinglaunch
    Robinhood Ventures Ilaunch

    Risks & headwinds

    1
    Degraded app performance due to AWS outagea few weeks back

    significant number of our customers affected

    Mitigation: Made significant investments in system resilience; continuously strengthening resilience internally and with partners.

    What to watch in Q4 FY25

    5

    Robinhood Banking rollout speed

    next quarter
    Currentearly customer rollout quite recently
    Targetrelatively fast rollout

    Why it matters

    Rapid adoption of Robinhood Banking is key to increasing wallet share and making Robinhood a primary financial account.

    This will be a relatively fast rollout. When you compare banking to the credit card, there's not the same considerations around making sure the economics between the borrowing and the spending are perfectly calibrated. I think banking is a simpler product in that way. And so the rollout will just be governed by customer feedback.

    Q&A highlights

    6

    How quickly does Robinhood expect to roll out Robinhood Banking to users?

    The rollout will be relatively fast, governed by customer feedback. Early results are positive, with customers already trying it and liking the user experience and interest on checking.

    “This will be a relatively fast rollout. When you compare banking to the credit card, there's not the same considerations around making sure the economics between the borrowing and the spending are perfectly calibrated. I think banking is a simpler product in that way. And so the rollout will just be governed by customer feedback.”

    asked by Preston (Shareholder) · answered by Vladimir Tenev

    2 min read5 chapters

    Detailed Narrative

    01

    Product Velocity and Diversification

    Robinhood emphasized its "relentless product velocity" across three focus areas: active traders, wallet share for the next generation, and global financial ecosystem. This strategy has led to significant diversification, with Prediction Markets and Bitstamp each surpassing $100 million in annualized revenue, bringing the total number of businesses exceeding this milestone to 11. The company is actively integrating AI into its operations, particularly in customer service and engineering, aiming for best-in-class deployment within the financial services industry.

    02

    Expansion into Banking and Credit

    The rollout of Robinhood Banking is accelerating, with positive early customer feedback on direct deposits and interest earnings on checking. The Robinhood Gold Card has seen rapid adoption, growing 5x in cardholders since the beginning of the year to over 0.5 million, with annual spend exceeding $8 billion. These initiatives aim to make Robinhood the primary financial account for customers, minimizing reasons for money withdrawal and maximizing inflows.

    03

    Private Markets and Wealth Transfer

    Robinhood views private markets as a significant opportunity, particularly for non-accredited investors, aligning with its mission to democratize finance. The company is working on Robinhood Ventures to provide retail access to private companies, with an SEC filing for Fund I. This strategy addresses the trend of companies staying private longer and the $120 trillion generational wealth transfer, aiming to capture an outsized share by offering a comprehensive financial ecosystem for families.

    04

    International and Tokenization Strategy

    The company is pursuing a long-term vision for international expansion, aiming for over half of its revenue to come from outside the U.S. within 10 years. Tokenized equities in the EU are in Phase 1, with over 400 tokens available, and future phases include secondary trading on Bitstamp and DeFi integration. Robinhood sees tokenization as a disruptive force across various asset classes, including real estate, private credit, and collectibles, enabling fractional ownership and 24/7 trading.

    05

    Leadership Transition

    CFO Jason Warnick announced his retirement, transitioning to an advisory role in Q1 and fully departing by September 1, 2026. Shiv Verma, SVP of Finance and Strategy and Treasurer, will succeed him as CFO. The transition is highlighted as seamless, with a focus on continued profitable growth, disciplined capital allocation, and a lean culture.

    AI-generated summary of the company’s earnings call. Not investment advice.