Robinhood Markets (HOOD) HOOD Q3 Financial Results Summary

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Robinhood (HOOD) Q3 2025 Financial Results Summary

Robinhood Markets, Inc. (“Robinhood”) (NASDAQ: HOOD) announced its financial results for the third quarter of 2025 on November 5, 2025. The report highlights significant growth across various metrics, reaffirming the company’s strong momentum and expanding business lines.

Key Financial Highlights

  • Total Net Revenues:

  • Increased by 100% year-over-year to $1.27 billion.

  • Revenue Breakdown:

  • Transaction-based revenues rose by 129% year-over-year to $730 million:
    • Cryptocurrencies generated $268 million (up over 300%).
    • Options revenue was $304 million (up 50%).
    • Equities revenue increased to $86 million (up 132%).
  • Net interest revenues increased by 66% year-over-year to $456 million.

  • Other revenues grew by 100% year-over-year to $88 million, mainly due to increased Robinhood Gold subscribers.

  • Net Income:

  • Grew by 271% year-over-year to $556 million.

  • Diluted Earnings Per Share (EPS):

  • Increased by 259% year-over-year to $0.61.

  • Operating Expenses:

  • Increased by 31% year-over-year to $639 million, primarily fueled by marketing and growth investments.

  • Adjusted Operating Expenses (non-GAAP):

  • Increased by 29% year-over-year to $613 million.

  • Adjusted EBITDA (non-GAAP):

  • Rose by 177% year-over-year to $742 million.

  • Customer Growth:

  • Funded Customers increased by 2.5 million (up 10%) year-over-year to a total of 26.8 million.

  • Investment Accounts increased by 2.8 million (up 11%) year-over-year to 27.9 million.

  • Total Platform Assets:

  • Increased by 119% year-over-year to $333 billion.

  • Net Deposits:

  • Recorded at $20.4 billion, with a 29% annualized growth rate compared to Q2 2025.

  • Robinhood Gold Subscribers:

  • Increased by 1.7 million (up 77%) year-over-year to 3.9 million.

  • Average Revenue Per User (ARPU):

  • Increased by 82% year-over-year to $191.

  • Cash and Cash Equivalents:

  • Totaled $4.3 billion, down from $4.6 billion last year.

Share Repurchase Program

  • Share Repurchases:
  • In Q3 2025, Robinhood repurchased 1 million shares of Class A common stock for $107 million at an average price of $104.95 per share.
  • Since initiating the program in Q3 2024, total repurchases amount to $810 million, which represents 22 million shares.

Additional Insights

  • Robust Trading Activity:

  • October 2025 showed record trading volumes across various platforms, with significant increases in margin balances.

  • International Expansion:

  • The company has nearly 700 thousand Funded Customers across the UK and EU.

  • Prediction Markets and New Ventures:

  • Newly added business lines in Prediction Markets and Bitstamp are generating substantial revenue, contributing to Robinhood’s growth trajectory.

Conclusion

Robinhood’s Q3 2025 results reflect remarkable growth across key financial metrics and the successful expansion of its business lines. The company is not only increasing revenues but also scaling its customer base and delivering significant shareholder value through an active share repurchase program. The company’s focus on innovation and product development appears to set a solid foundation for future growth.

Revenues: Three Months Ended YOY% Change Three Months Ended QOQ% Change
September 30, 2024 June 30, 2025
Transaction revenues $319 129% $539 35%
Net interest revenues $274 66% $357 28%
Other revenues $44 100% $93 -5%
Total net revenues $637 100% $989 29%
Operating expenses(1)…
Brokerage and transaction $39 44% $48 17%
Technology and development $205 16% $214 11%
Operations $27 22% $29 14%
Provision for credit losses $23 13% $28 -7%
Marketing $59 73% $99 3%
General and administrative $133 39% $132 40%
Total operating expenses $486 31% $550 16%
Other income (loss), net $2 NM $3 NM
Income before income taxes $153 314% $442 43%
Provision for income taxes $3 NM $56 39%
Net income $150 271% $386 44%
Net income attributable to common stockholders
Basic $150 $386
Diluted $150 $386
Net income per share attributable to common stockholders
Basic $0.17 $0.44
Diluted $0.17 $0.42
Weighted-average shares used to compute net income per share attributable to common stockholders
Basic 884,108,545 882,149,402
Diluted 905,544,750 909,127,658
Assets December 31, 2024 September 30, 2025
Current assets:
Cash and cash equivalents $4,332 $4,331
Cash, cash equivalents, and securities segregated under federal and other regulations $4,724 $8,443
Receivables from brokers, dealers, and clearing organizations $471 $482
Receivables from users, net $8,239 $14,390
Securities borrowed $3,236 $6,607
Deposits with clearing organizations $489 $1,440
User-held fractional shares $2,530 $3,618
Held-to-maturity investments $398 $53
Prepaid expenses $75 $128
Deferred customer match incentives $100 $161
Other current assets $509 $326
Total current assets $25,103 $39,979
Property, software, and equipment, net $139 $150
Goodwill $179 $386
Intangible assets, net $38 $172
Non-current deferred customer match incentives $195 $360
Other non-current assets $533 $405
Total assets $26,187 $41,452
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable and accrued expenses $397 $399
Payables to users $7,448 $12,317
Securities loaned $7,463 $15,666
Fractional shares repurchase obligation $2,530 $3,618
Other current liabilities $266 $762
Total current liabilities $18,104 $32,762
Other non-current liabilities $111 $123
Total liabilities $18,215 $32,885
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.0001 par value. $— $—
Class A common stock, $0.0001 par value. $— $—
Class B common stock, $0.0001 par value. $— $—
Class C common stock, $0.0001 par value. $— $—
Additional paid-in capital $12,008 $11,317
Accumulated other comprehensive income (loss) $-1 $7
Accumulated deficit $-4,035 $-2,757
Total stockholders’ equity $7,972 $8,567
Total liabilities and stockholders’ equity $26,187 $41,452

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