HOOD
Earnings call · Sep 2025 (Q3 FY25)

Robinhood Markets Q3 FY25 earnings call 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

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

Revenue
$1.3 billion up 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 digits up
Q3 FY25
Interest-Earning Assets growth
over 50% up
Q3 FY25
Robinhood Gold Subscribers
3.9 million over 75% year-over-year growth
Q3 FY25
Adjusted OpEx and Share-Based Compensation
$613 million about $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 billion doubled volume every quarter since then
Q3 FY25
Prediction Markets Contracts
2.5 billion October 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 billion more than doubled in the past year
Q3 FY25
Robinhood Strategies Assets
$1 billion
Q3 FY25
Robinhood Gold Card Cardholders
over 0.5 million 5x 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 billion exceeded last year's record
YTD FY25
International Funded Customers
nearly 700,000
Q3 FY25
Funded Accounts
27 million scaled 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
10 slightly 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

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

Risks & headwinds

Degraded app performance due to AWS outage a 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

Robinhood Banking rollout speed

next quarter
Current early customer rollout quite recently
Target relatively 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

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 read 5 chapters

Detailed narrative

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.

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.

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.

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.

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.